Be a problem solver. As a real estate investor, it’s your job to be a problem solver, above anything else. If you aren’t solving any problems, then what are you doing? If you can learn to solve other peoples problems for them, in a way that benefits both them and yourself, you’ll be much more successful as a real estate investor.
The problem with a lot of folks who are trying to invest in real estate is they aren’t seeking out problems and solution to those problems. If you aren’t providing solutions to problems, but rather just making offers, and going through the motions, then nothing sets you apart, and you’re just another commodity.
Not you though. You are an action taker. How do I know this? Well for one, you’re listening to this podcast and educating yourself. When you are equipped with the knowledge and resources, you are more prepared to bring solutions to those who need them.
Let’s look at a few different ways in which you can identify problems.
- Look for properties that are distressed. Distressed properties provide opportunities for you to provide value, by bringing them back up to par.
- Looked for motivated sellers (often the owners of distressed properties). These sellers can be motivated by many different things. They may be behind on the property financially, or dealing with difficulty tenants, or are having trouble managing it, or maybe they inherited it and don’t want it, but don’t know how to go about selling it confidently.
- Search for targets in which you know you can provide value. Maybe that’s your specific submarket (neighborhood), or favorite property type which you know well, such as a fourplex. If you know have experience converting 2 story 1960’s construction homes into duplexes, then search out those types of properties and offer your solutions there.
Next let’s look at ways you can solve problems
- To solve a problem, you need all of the information. So step is gather that information. Understand why the seller is selling. Know the local tax rates. Have an idea of insurances costs. Overall, be equip yourself with knowledge so that you can provide a real solution.
- When you have a bit of information, begin to understand what the problem is. Perhaps the seller needs to sell the property quickly. Or maybe they don’t want the property, but also don’t have any plans with the money from the sell. These are all things you can use to offer the seller a more favorable offer.
There are many different ways to identify and solve problems in the world of real estate investing. Find the ways you know you can provide value and search out those problems.
Many real estate investors miss these points, and fall into the depths of irrelevance. By not understanding how to identify problems and propose mutually beneficial solutions, you won’t provide any value.
Understand that you can’t solve every problem you come across. Some problems simply don’t have solutions, or maybe your don’t have the resources to solve that problem.
Focus on solving other people’s problems, and you’ll become invaluable to those around you. Be creative, be sincere, and be great.