Welcome to one of the top shows on Propelio TV, the Pain & Gainz show! Whether you’re a real estate veteran or just getting your feet wet, there’s always something new to learn. Today, we dive into the experiences of Cameron Whitehead, a relatively new investor from San Marcos, Texas. Cameron shares his journey, including the challenges and successes he’s faced in the real estate market.
Getting Into Real Estate as a New Investor
Expectations vs Reality
Starting in real estate is often filled with high expectations. Many believe they’ll be making $50k a month in no time. However, reality tends to be more complicated. Here are some challenges Cam faced:
- Understanding Data: Cameron initially struggled with cold calling and wasn’t seeing results. He later realized it stemmed from targeting the wrong lists.
- Dealing with Complex Deals: His first deal involved 16 different heirs, requiring a steep learning curve in navigating title issues and legal complexities.
The takeaway? Real estate is a numbers game. The key is to set realistic expectations while being ready to adapt and learn.
Importance of Networking
Networking can make or break your real estate journey. Cameron’s experience highlights just how critical this is.
- Meetup Groups: Cam started his own Central Texas Meetup group, providing a platform for investors to connect and share knowledge.
- Connecting with Mentors: He met his mentor, Ryan McDonald, at a local meetup. This relationship helped him close his first complex deal involving multiple heirs.
Networking is invaluable. It opens doors to new opportunities and partnerships you might never have found on your own.
Choosing a Niche
Finding your niche is essential to real estate success. Cameron initially juggled being an agent and an investor but found it overwhelming due to his other career as an auctioneer. Eventually, he zeroed in on wholesaling and vacant land deals which suited his strengths and goals better.
Pivoting Your Strategy
Knowing when to pivot is crucial in real estate.
- When to Pivot: Cam realized that despite his efforts, cold calling homeowners wasn’t yielding results. Instead of giving up, he shifted his focus to vacant lands, a market with lesser competition.
- Examples of Pivoting: Transitioning from traditional home wholesaling to vacant land allowed Cameron to enjoy a higher success rate.
The benefits of pivoting can’t be understated. If something isn’t working or isn’t enjoyable, don’t be afraid to change your strategy.
Marketing for Vacant Land Deals
Sending Offers at Scale
Cameron found success by sending offers at scale. Rather than cold-calling hundreds of homeowners, he now sends over 100 offers per day on vacant land properties.
- Identifying Motivated Sellers: By sending out numerous offers, he quickly identifies who is willing to sell and who is not.
Building a Buyer’s List
Building a buyer’s list is essential for flipping land.
- Networking with Local Builders: Cam reached out to builders in the area who were actively purchasing land.
- Checking MLS for Active Builders: Using the MLS to identify who is buying land enables him to tailor his offers to those most likely to be interested.
- Selling to Neighbors: Sometimes, the easiest sell is to a neighboring property owner who’s interested in expanding their lot.
Overcoming Newbie Mistakes
Accounting for Repair Costs
Understanding repair costs can make or break a deal. Cameron notes his initial struggles in estimating rehab costs accurately.
- Tip: Always get multiple bids from contractors to get a clear picture of costs.
Dealing with Code Violations
Cameron shares his experience with code violations and how they can significantly affect a deal.
- Tip: Regularly inspect properties and stay informed about local regulations.
Understanding Zoning/Occupancy Rules
Each area has specific zoning and occupancy rules that can impact your investment.
- Tip: Always perform due diligence to ensure the property complies with local regulations before purchasing.
Working with Contractors
Setting Expectations
Clear communication with contractors is key. Cameron shares the value in setting expectations upfront.
- Tip: Outline the scope of work and timeline to avoid misunderstandings.
Managing Timelines
Unexpected delays can disrupt your plans. Cameron discovered this firsthand when he learned you can’t paint in freezing weather.
- Tip: Build flexibility into your project timelines to accommodate unforeseen delays.
Getting Trade Accounts
Opening trade accounts can save you money.
- Tip: Establishing accounts with suppliers like Home Depot can offer bulk discounts and better rates.
Leveraging Your Skillset
Advantages of Being an Auctioneer
Cameron’s background as an auctioneer gave him confidence in public speaking and negotiating, skills that have advantaged him in real estate.
- Tip: Leverage your unique skills in your real estate career to stand out.
Funding Your Deals
Importance of Lender Relationships
Building relationships with lenders is crucial for securing funding.
- Tip: Cultivate these relationships and always compare lending terms to get the best rates.
Facilitating Deals for Wholesalers
If you’re a wholesaler, help your buyers secure funding.
- Tip: Partner with reliable lenders to offer your buyers quick and easy finance solutions.
Building Your Team
When to Bring in Partners
Knowing when to bring in partners can help you scale your business.
- Tip: Look for partners who complement your skill set and can share responsibilities.
Splitting Profits/Responsibilities
Splitting profits and responsibilities fairly can lead to a successful partnership.
- Tip: Clearly define each partner’s role to avoid conflicts.
Leveraging Your Network
Your network is a powerful tool.
- Tip: Use your network for referrals, advice, and collaboration opportunities.
Diversifying Income Streams
Having an Exit Strategy
It’s crucial to have an exit strategy for each investment.
- Tip: Plan your exit strategy during the initial purchase to ensure a profitable exit.
Balancing Multiple Businesses
Balancing multiple real estate ventures can be challenging.
- Tip: Focus on one or two main activities to not spread yourself too thin.
Creating Passive Income
Investing in rental properties can create a steady stream of passive income.
- Tip: Look for properties in stable areas with a high rental demand.
Setting Realistic Goals
List of Example Goals
Set achievable goals to track your progress.
- Tip: Break down big goals into smaller, manageable tasks.
Celebrating Small Wins
Celebrate your achievements to stay motivated.
- Tip: Take time to acknowledge every milestone, no matter how small.
Mindset Changes Required
Adopting the right mindset is essential.
- Tip: Stay positive and be adaptable to changes and challenges.
Finding Mentors
Identifying Successful Investors
Seek out investors who have succeeded in your niche.
- Tip: Look for mentors with a proven track record.
Asking for Advice/Guidance
Don’t be afraid to seek advice.
- Tip: Approach mentors with respect and a willingness to learn.
Being Coachable
Being open to feedback is crucial.
- Tip: Be willing to listen and implement advice from those more experienced.
Continuously Learning
Attending Seminars/Webinars
Invest in your education by attending industry events.
- Tip: Stay updated with the latest trends and strategies.
Reading Books/Blogs
Regularly reading will expand your knowledge.
- Tip: Follow industry blogs and read books from real estate experts.
Ongoing Education Resources
Utilize platforms like Propelio Academy for continuous learning.
- Tip: Make use of free trials and resources available online.
Tips for New Investors
Focus on 1-2 Core Competencies
Pick a couple of areas to specialize in.
- Tip: Become really good at one or two things rather than spreading yourself too thin.
Take Calculated Risks
Real estate involves risks, but they can be managed.
- Tip: Always do your due diligence before making any investment.
Have an Action Plan
Planning your actions saves time and money.
- Tip: Have a clear action plan for each deal and follow it.
Starting a Local Meetup
Consider starting a meetup if one doesn’t exist in your area.
- Tip: This will position you as a leader in your local real estate community.
Joining Online Groups
Participate in online forums and groups.
- Tip: These platforms can be treasure troves of information and networking opportunities.
Ways to Give Back
Give back to your community once you’re established.
- Tip: Mentor new investors or participate in local charity events.
Wrap-Up
Becoming successful in real estate demands hard work, adaptability, and continuous learning. Aligning yourself with experienced mentors, pivoting when necessary, and leveraging your unique skills can make all the difference. Don’t forget the invaluable power of networking and setting realistic goals. The journey may be challenging, but the rewards are well worth the effort.
Don’t miss out on leveraging all the tools at your disposal. Propelio offers lead-generating websites, access to MLS comps, off-market lead lists, and more. With a 7-day free trial, now’s the perfect time to get started.
Happy investing!
Get started with Propelio and unlock all the tools you need to succeed in real estate. Sign up now for a 14-day FREE trial: Start Free Trial
