​Good and bad experiences as a new investor.

This is my first blog post to Biggerpockets. I hope to share some of the knowledge that I gain on my journey to become a full time investor.

Bad experience:

I created a small email campaign targeted towards brokers. The purpose of the email was to introduce myself, outline my criteria for properties, and to provide an enticing referral program (80/20 profit split). I began by messaging the agents one by one. I realized that going about this manually would take much too long. I decided to work smarter and not harder by using a mail merge program. I compiled my data in a spreadsheet, sent myself a preliminary test copy, and then I hit “send all.” I went to bed immediately afterward.

The next morning I awoke to an inbox filled with angry messages from realtors. Apparently instead of sending ONE message to each individual of my list of 20, I sent TWENTY messages to each individual person. I did my best to explain the situation and apologize profusely. Although clogging up someone’s inbox is a relatively small offence, I will never get the opportunity to have that first impression back.

Lesson learned:

- ALWAYS double and triple check yourself before hitting that send button.

-The first impression is always the most important.

Good experience:

I negotiated my first property today!

I made a post on facebook discussing my experience as an investor. A friend of mine commented and said “Wanna buy my house? I'm done with it.” I immediately messaged him and he started communicating the details of the property.

It was a manufactured home, no significant damage. Their familial/life situation called for a different home. They were looking to get about 15K for the property. I ran my numbers on my spreadsheet. I came to about 8K. (If anyone would like a copy of my deal analysis spreadsheet, private message me, I would love to share.) I then ran my numbers through the bigger pockets deal analysis and achieved about the same number (8K).

Before communicating my purchase offer, I made it clear that this number was mathematically generated and therefore was impersonal. My offer of 8K was politely refused. This was a near 50% difference in our numbers. Their situation wasn’t urgent enough to warrant such a price drop.

Before our conversation ended, I tried to brainstorm with him to find a problem to his situation. At the end of the day we are not investors, we are problem solvers helping people with their real estate needs. One should never just walk away from a deal. One should always build relationships and keep that window of opportunity open. How many deals have you had fall through, just to have them call you weeks, or months later? Regardless if that deal never closes, the good will that your unilateral effort generates is priceless.

Lessons learned:

-Tell EVERYONE that you are an investor. I have heard of people generating leads as they are in line at the grocery store. You never know when a deal will land in your lap.

-This being my first time, I learned how the client interview/ negotiation process works. I am glad I got to practice on a friend. I will be better prepared for next time.

-Never burn bridges. Always keep a connection to negotiations that fall through. You never know when someone might change their mind.

- Provide value regardless if you are benefiting directly. Karma is a real thing folks. Not in a spiritual new-age sense, but in a real sociological sense. Be a people-oriented business man and you are guaranteed to succeed.

#realestateinvestor #negotiations #mailmerge