UPCLOSE & PERSONAL
WEEKEND INVESTOR
React? Or Respond? HOW YOU DEAL WITH CHALLENGES AND UNEXPECTED ISSUES WILL DETERMINE YOUR LEVEL OF SUCCESS IN REAL ESTATE INVESTING.
by Kevin Guz
T
to that challenge, or do you react to that? The reactors throw their arms up, criticize the circumstance, retreat, sur- render or quit. They blame somebody else, whether it’s their competitors “who are paying too much, so therefore there are no good deals out there for me” or the market, which has driven the prices up too high and run off all the buyers. They will find just about anyone or any- thing to blame—except themselves. In stark contrast, the respond- ers—when faced with the challenge of limited deals or leads—are going to look at their marketing and then correct their course. They will say to them- selves, “Do I need to market different- ly? Maybe more direct mail is what I need.” They may choose simply to do more marketing: “If it’s getting tougher to find the deals, then I am just going to have to work harder, spend more and market more.“ They may improve their networking. They may increase their follow-up. They may look for new sources for deals: “I have only ever bought short sales, but maybe I need to look at foreclosures, or maybe I need to start marketing directly to sellers.” They are going to come up with a new exit strategy. Maybe they only did fix- and-flips, and maybe it’s time to do seller financing. They are going to look for new partnerships. Maybe they encounter somebody at the local REI club meeting with whom they can partner and learn, and then that will open up new opportu- nities for new leads or new deals. They are going to seek out more train-
here are definite habits and traits that separate part-time and beginning real estate investors who are successful from those who are not. There are so many, in fact, that we can’t cover them all in one article. So let’s just focus on one contrast in particular. As is often the case, it is applicable to something that I have personally experienced, either as a part-time real estate investor or now as a full-time real estate investor and HomeVestors franchisee in Dallas. Let’s think back to the tragedy that took place on Sept. 11, 2001. We all became very familiar with the term “respond- er.” These were the paramedics, police officers, firefighters, etc., who were first on the scene. The connotation that quickly developed was that a first responder is someone who is brave, deliberate, pro- vides solutions, takes action and, in the case of that tragedy, saves people’s lives. Contrast that with the scene we watched, on several occasions, earli- er this election year. Many of us saw or heard about the onstage actions of the candidates debating to be the next president of the United States. Many of those candidates exhibited traits quite different from those of a first responder. What we were seeing instead were char- acteristics of a reactor. Those candidates were reacting to questions, rather than responding, and often in a manner that was panicked, frustrated, confused or even hostile if they were confronted or challenged by one of the other candi- dates on the debate stage. You can see the connotation that
creates for a reactor. A reactor’s behav- ior typically is very negative, not very deliberate, not very calculated and very haphazard. It rarely accomplishes any- thing or provides any solutions. RESPONDER OR REACTOR: TOTAL OPPOSITES The question I have for you as a part- time investor is: Are you a responder, or are you a reactor? Are you a brave, cal- culating, determined solution provider? Or do you act in a haphazard way, re- treat, get frustrated and act negatively? I have found that the successful real estate investor exudes the characteristics of a responder. Let’s talk about that in the context of some real-life situations that you are either already experiencing as a part- time investor or that you will experience very soon. Based on my experience, you will ultimately encounter each of these scenarios at some point in your career, whether you are just preparing to become a real estate investor or you have already started. What’s most important is how you behave when faced with these challengers, obstacles and unexpected circumstances. SCENARIO NO. 1 NO DEALS Let’s start with the most obvious, typ- ical challenge you are going to face as a real estate investor. There will be a point you will probably find yourself saying, “There are not enough good deals out there. I cannot find any leads. I cannot find any deals. I cannot find any invest- ments.” The question is, do you respond
84 | think realty magazine july :: august 2016
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