Is this a good time for Newbies to take action in Real Estate?

Question

Considering the uncertainty of the market and economy, is this a good time for a newbie to take action or should we sit on our hands and wait for certainty again, whether the market goes up or down?

Jay Helms · Answer

Take action has many forms. Continue to learn, network (virtually) and attend virtual conferences. Check out the upcoming W2CapSummit.com . @John Cameron @Lauren Juarez @Pete Storseth

Pete Storseth · Answer

Im.doing just that. Set up a website, started marketing- cold calling, FB, postcards. Plan is to take on seller financing wherever I can. I really want to take advantage of the situation in order to help people out of theirs.

I'm looking for ways to get traffic to my lead gen site. I get "clicks and engagements" from FB, but no leads.

Jerryll Noorden · Answer

Yes, Get started on a website, and start working on SEO. There is no better time. By the time the dust settles you want to be ranking #1.

It will be an investors paradise when the dust settles!!

Lauren Juarez · Answer

Glad you asked this question, @John Cameron! I am wondering the same thing. I am interested in what people will say!

Matthew McNeil · Answer

I don't think its a matter of "sitting on our hands and wait for certainty again" but I'd sure wait for the dust to settle a bit.

Collin Corrington · Answer

I'm heads-down full steam ahead.  I personally don't see the housing bubble like in 2008/9.

As for a newbie...how new?  If you know your market well then you should be positioned to pounce like a Joe Exotic Tiger!  This is an AMAZING time to snag your first deal!  There are going to be more fed-up landlords, divorces, foreclosures, etc than you can shake a stick at.  Find one you like and pull the trigger.  It'll be hard to miss a good deal.

HOWEVER, if you're a new new new newbie, wait.  This market is going to vomit up some weird reactions. A lot good, some bad/weird.  If you don't know what you're looking at you're going to pounce on a wombat thinking its a gazelle. (That was a terrible analogy, I just can't seem to let the Joe Exotic tiger thing go).

How to know which one you are?  That's easy.  Have you ever wanted a specific car?  Let's say a 2019 Dodge Ram Pickup. You search online all day for about a month.  By the end of that month, you are an expert.  You know exactly what the range should be for that truck and if some goober at Joe's car lot posts one for $5,000 less than it should be, you're there within the hour!  It's the same with a house.  Just bigger numbers.

If you're not that good with your desired market than you need to sit.  If you have a price and house in mind for your first deal, then grab the checkbook.  But remember, if that truck is $15,000 less than it should be, you'll have some questions.  It's the same with a house.

Stone Saathoff · Answer

I operate in the San Antonio, Texas area. Taking this time where things might be a little slower to build new relationships and put things into play for the future. That's what I would recommend newer investors do too, but of course if you see an amazing deal before everything is said and done might as well go after it.

Pete Storseth · Answer

@Jerryll Noorden

Thanks for the feedback. I'm really close to a first deal, but I need someone to back me for the down payment, closing and holding costs. Any suggestions for finding passive investors on a small scale? I was offering 4% interest for 5 years, paid annually.  I am gonna reach out to personal contacts but I figured with people sitting on capital a 20% ROI would get somebody interested

Jerryll Noorden · Answer

Man you hit the nail on its head SO HARD.

Sellers being so damn unrealistic with their sale price. I get it, you want market price but why get pissed and insulted when I show you comps that CLEARLY says "you" want $25K OVER ARV!

I am impressed 2-3 leads a day is nothing to be shy about! Keep at it man. My leads have definitely dropped noticeably. But the odd thing? My partners doing PPC... their leads have increased and from what I can see, they are VERY motivated. I am burning midnight brain oil trying to find the reasons for this. This is a difficult problem to crack for sure!

Pete Storseth · Answer

@Jerryll Noorden

Thanks. I keep tinkering with it. FB ads and constant posts have already hit thousands of people scrolling all day at home. I have recieved more leads than I would imagine if I had done this a month ago.

I'm analyzing 2-3 deals a day now. Not zillow hypothetical leads but actual leads.

Mostly I'm getting landlords and investors liquidating. So most of them aren't deals at all. The non-investors are so ignorant they think they're entitled to profit even though they owe 5 years in taxes and 20 years of their loan.

I'm being frugal. Spent maybe $30 on FB, 25 on magnets for my car, 57 for a CRM/lead list and only sent 33 letters.

I need to step up my direct mail, turn up the quality of the FB ads and cold call 200 calls a week. That's next.

The deals I'm looking at will be on BP with calculator questions. And if anyone knows seller financing, that's my jam and I need help.

Is this a good time for Newbies to take action in Real Estate?

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