50 Reasons Investors FAIL or lose $$$$

reading too much into some of these posts and believing it is impossible and giving up!

Just do it!! Who cares if you fail the first time, YOU will learn it better
the next time.

“The only real failure in life is the failure to try.”

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” ----Colin Powell

“I didn't fail the test, I just found 100 ways to do it wrong”
Benjamin Franklin

Good ones!

A truly driven and determined new investor would not let ANYTHING he reads stop him. It would just make him aware of the hurdles he must overcome on his way to success!! A quitter would never make it in this business anyway. Like you said, just get out there and learn. Once you have the basic theory down, getting out and doing this business is how to learn, just don't put your money or credibility at unnecessary risk while you do so!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I've come across a bird-dogger recently that I talked with over the phone. He was slipping a curse word here and there for about 15 minutes. When I got off the phone I realized that this isn't the kind of person I want representing me and my business/deals.

Just goes to show you, don't curse, it's not professional and people take you less seriously.

Those are good and most of them are the reason(s) I haven't done a deal Yet.

1. I'm beginning to take action NOW.. refer to #8
2. I'm working on it....
3. I've decided to get 3 estimates on every property I have a deal working until I learn it well enough to do it myself.
4. Again, I'm working on getting another REA. I know some personally that will help me until that time.
5. Will get my contracts checked out (as soon as I find an attorney) still working on that too!!
6. I am concentrating on FSBOs right now.. I've had better luck!
7. Have to get it done!!
8. I had this for over 2 years. Analyze, analyze, analyze. Then somebody else snatches it!
9. Not doing flips right now.
10.That's a little further in the future for me.
11. That's my strong point. I know how to talk to people.
12. I want 3 or 4 on my team... gotta get busy.
13. There's too much to learn and it will be a learning process every day that comes. I'll never think I know it all and I don't have an arrogant bone in my body and never will. And I haven't really seen anybody on this forum who gets arrogant after only a couple of deals. It's usually the ones who have been at it for quite a while from what I read on the forums.

Thank you, Michael. When I write these down, it makes me accountable.

Michael. This post really makes me think! I need to do MORE. I NEED to learn more RE and learn certain strategies a lot better. I NEED to re do my marketing plan/goals. I really want to succeed in REI! I will do whatever it takes to make this happen for me! success to us all

Mark, you are so right! You only have one chance to make a good first impression. Be ready, be professional and be confident.

Shirley, I know you will get there!! Why? You are taking action that's why!!

Robert, Get Dean's books if you have not done so already. Sign up with the success academy, do the work and call the coaches 10 times a day!! Nothing really good is free. Invest in yourself. The return you get will be huge!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Seems like you got most of it covered. I know 1 and 8 were my worse ones. I always wanted to fiddle around with comps, then run comps again etc, because I was to scared to take action. But yes, looks like you got most of them. Thanks for the post ,hope new investors and investors that have been messing around, pay attention to this list. Take action

Curtis Fillers
(Charlotte,NC)

Thanks Michael and everyone for the list!!

Thanks michael ive read two of deans books. I need to ge the newest book dean made i think its called "30 days to real estate cash". Im going to call the success academy to look into joining the program. Would the coaching help in getting the right contracts?

Hi everyone and thanks Michael and Shirely we wont let you rest to you make it happen, knowing whats holding one back is one thing and over coming it is another, but taking positive action and keep jumping the hurdles will get one there and how sweet that is when the first deal is done, Jim

The academy will provide "rough drafts" of contracts. Always have an attorney go over the contracts you plan on using. Once they are oked or anything added by the attorney you are set to go. Of course when you offer through a realtor, they will use the state approved contracts anyway.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I can't believe I forgot this one.

14. Using weasel clauses when submitting offers. You WILL be guaranteed no bad deals. Why? No offers will be accepted 99% of the time!! Use the inspection period only.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

What are weasel clauses?

Thanks

Great stuff Michael. I have to agree that the #1 most important thing in all of this, if you want to make it happen, is you have to take the first step, and that involves TAKING ACTION! Joe Polish on the EDGE video said, "You will accomplish more through ACTION, than you ever will through meditation". In other words, you can read all the books, watch all the videos, listen to all the coaching calls etc...but if you dont take ACTION, it is all a waste of time. Before I did my first deal, I remember sitting on my bed, looking at all of the real estate books and courses on my desk and saying "Man I wish I could just do my first deal"...I thought I needed to know EVERYTHING before I took ACTION, and that is a big reason why people fail, and that's why I was failing. Then my girfriend, who sends me quotes every so often, sent me this quote: "Some people want it to happen, some wish it would happen, and others make it happen"..I was sick and tired of being a "wanter" and a "wisher", so that day I decided to be a "make it happen" person. I got may lazy butt up out of bed, and instead of wishing and wanting my first deal to fall into my lap, I went out and GOT IT. I stopped procrastinating and even though I didnt know it all, I still took ACTION and learned along the way. And I can tell you this, I learned more from the doing, then I did from any damn book I'll ever read, and so will everybody else. A few weeks later, I closed my first deal. Get up out of bed people and start doing what you need to do. Put your fears aside and go after what you want, because I can assure you, it's not gonna just fall into your lap, no mater how hard you wish and how much you want. Knowledge + ACTION = SUCCESS!!!

Great post! Nice to see that your girlfriend gave you the inspiration to get up and take action. Everything you said I agree with and yes knowledge without action is just information about to be forgotten. Action is the key to remember information too because if you're constantly using what you know then it will be permanently ingraved in your brain.

Still haven't done my 1st deal, but I know for sure its right around the corner. My partner and I we're beggining with wholesaling and got RELIABLE buyers list and now we are just starting to put ads out. Currently have flyers, craiglist, and bandit signs advertising our services. Tonight we're putting out some more bandit signs. Can't wait, excited.

Keep doing what you're doing

Gabriel,

Weasel clauses or contingencies are things like "subject to my partners approval, subject to approved financing, Subject to me finding a buyer, earnest money due at closing etc etc. These things will almost always be rejected by banks when offering on REOs and short sales. You can get away with them when dealing directly with sellers, using your own contracts, no agent involved. But why?? If you are more worried about getting out of the deal than closing the deal this usually means you are not ready to do the deal anyway!!! No buyer in advance, paying too much etc. The standard inspection period is all you should use for your escape clause in my opinion.

Joe!

I remember one night when I was in the success academy and doing my studies. I looked over at my wife and said " I have to go try and buy a house, I can't learn how this works in the real world until I TRY and wholesale a property. I know all the theory that I need. Time to get out there and make an idiot of myself." Turns out I did not make an idiot of myself. The things I learned, the connections I made and the people I met that are ACTUALLY doing business were unbelievable!! This would have NEVER happened sitting at home on Face book or any other REI blogs etc etc. EXAMPLE: $20,000 assignment on an UNLISTED estate sale. WE saw the cardboard estate sale sign on a stop sign pole and dropped by and asked if the property was for sale. The rest is history.

Joe, I'm looking for that email you said you would be sending me. Lets rock!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

15) Blowing the 1st thousand, $10K, $100K a noob makes on crap they don't need, instead of paying off debts, improving their credit, and re-investing in their business and education.

16) Trying to shortcut the process and make/save $$ by pretending to be someone they're not. Examples: "I've got a toilet in my house, how hard can plumbing be?", investors trying to be banks, REA's pretending to be lawyers and misquoting the laws to the point of committing FRAUD, REI vets pontificating from their ivory towers of experience trying to be gurus, investors expecting their title company to do their lawyer's job and vice versa, etc., etc. You guys get the point.

17) Being too scared of what they're saying to say it with a straight face. "I'm not a lawyer, so don't sue me for saying (fill in the blank)." If you WERE a lawyer, you'd already know you have nothing to worry about, and you'd know why, too.

18) Believing someone when they tell you "you can't do (fill in the blank)."

19) Investing in property below sea level.

20) Believing every negative thing they hear, then growing it into a tidal wave of doom and dread that keeps them scared on the couch.

21) Doing anything blind - meaning without any due diligence and without a clearly defined goal in mind beforehand.

22) Losing that Contrarian mindset. Or even worse, not even knowing what that is.

YIKES!

It makes sense. Why would a bank accept a contract with contingencies when other people are offering way better offers with no contingencies.

When submitting offers with FSBO, don't you think its good to add a contingency such as: 'This contract is contingent to partner's approval.'
Just to be sure you have a safe exit?

Also what do you mean by the standard inspection period? Is it from the time I submit the offer and it gets accepted all the way to the closing date? Or is it a statement I'd add into the Other conditions section, just like a contingency?

Thank you so much

David,

I had to laugh at #19!
#18 sometimes you are being told the truth! Example: You can't get an accepted offer on this property because the seller owes more than your offer. You CAN'T buy it at a discount. You have to know the difference between naysayers and true advise!
# 21 kind of goes with #2, #3, #4, #6 and #7.
#22 Sometimes it can be good to be intentionally different from the masses. You know, the old 2%. Sometimes it can be bad.

Gabriel,

When someone tries to give me a contract that says "subject to my partners approval" I hand them my phone and say "get it before you sign". Your partner could be your pet goldfish for all I know. People are wise to this strategy. When they see it they KNOW you are not buying unless you can find a buyer that you don't have yet.
These are all just my opinions, I know people use the clauses and get a contract accepted now and again. I want the strongest offer possible when I want the property.
Your inspection period starts when the contract is accepted and signed by both parties. It is usually 7 to 10 days. The inspection period is part of the contract and does not need to be added through an addendum. You may request an extended inspection period if needed, but if you can't find a buyer in 10 days it most likely won't sell anyway.

Escape clause allows you to get out of the contract.

Exit strategy is how you are going to make money on the deal. Example: Wholesale or cash flow after hard money purchase then ReFi of fix/flip. Those are exits.

I wonder if we can hit 50??

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

You are welcome. I hope people really read this thread from top to bottom and see where they need to work, take action and create their OWN motivation.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I understand. So say I put in 25 offers one gets accepted. With these offers I didn't put any contingencies at all. If the closing date is set for lets say 20 days after acceptance then I have 20 days to find a buyer and close correct? If I can't find the buyer then the contract is automatically null and void and all I lost was $1 earnest money and little bit of time?

As a newbie that really helps to put things in perspective I have noted the list and will monitor it daily along with my goals to keep that mindset at the forefront of my day.

No you do not have till closing if you want your earnest money back. You will have the length of the inspection period. When you only have $1:00 at stake it really does not matter except you are wasting the sellers time. Maybe they could have sold the property during the time you are tying it up. This is not the right thing to do in my opinion. Worry about doing what you tell the seller (close the deal) you will do, not how to get out of the deal. You could have an option to buy contract but that is just another offer that shows you have no buyer or money in advance. Also, the $1.00 earnest money works with your own contracts when working directly with the seller. Usually never when offering through an agent. You can put whatever you want as earnest, does not mean it will be excepted.
If you were a seller and you had two identical offers except one had $1.00 as earnest money and the other had $1,000 as earnest which one would you consider as the stronger offer?

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I'm getting ready to walk out the door as I type to put up 25 new bandit signs.

I also wanted to go to my first REI meeting, but it got canceled.

I need this and want it too bad too quit. I have never been a quitter and never will.

Frank,

Great thread, Michael! Thanks for sharing!

Cris

Never say die!

Visualize in your mind what you want and, make it real don't let anything
or anyone stand in the way of your dreams. Let's all tear it up!!!

Thanks for this great post,
Denver

You are welcome, hope it helps you get where you need to be!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Michael, I am going to be watching the "reasons" you enumerated here so I don't commit/do any of them! It's a VERY useful guide that everybody should be mindful of.

Thanks again!

Cris

You are welcome!!

Come on guys, I know there are other reasons or strategies that no longer work. Post them. We can hit 50 I know. Sometimes you have to know what NOT to do before you know what TO do!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Another Great Thread
Thanks Folks.