Unfortunately, the weather – when it comes to real estate investing – is pretty tough. The vast majority of real estate investors get chewed and spat out before they Germany WhatsApp Number even know what hit them. More than 87% according to some estimates. But it’s not just real estate wholesalers and pinball machines. It has been published that over 96% of businesses fail within the first 10 years and over half fold up their tent at the end of the first year. But that number is even high for real estate wholesalers and pinball machines… …because of the low barrier to entry to start a business. It requires virtually no capital to get started.
Failing investors tend to open their portfolios based on emotional decisions rather than nailing down their numbers and trusting the numbers. When emotion takes over, you tend to stop investing in marketing before it has a chance to succeed…you tend to make offers based on your “gut” versus a proven formula…and you tend to bounce from one thing to another in search of that magic ball like a pinball machine. One of the ways people constantly get emotional about numbers is the amount of money you invest in your business. How much money you invest in a marketing strategy. How much money you invest in a property.
How much money you invest in your education. As soon as emotion creeps into the equation and a mathematical formula stops being used… you’re on the fast track to losing your butt (and don’t know why). As a concrete example, let’s say two people are doing PPC marketing. Investor their budget rather than knowing the numbers first. They set aside $2,000 for PPC marketing for motivated home sellers. A lot to make a profit, right? They start their PPC campaign and quickly discover that the first few weeks of a PPC campaign is all about refining the campaign and tweaking it…so they end up spending $800 in those first 3 weeks. They have 7 leads to show for this, which they are working on… but no agreements yet.