This post is really long overdue, but I FINALLY got around to posting it! At the end of October I attended an awesome three day foreclosure workshop that was hosted by national real estate investors, Tony Youngs and Pete Youngs. These guys have been in the real estate investing business for over 23 years, and they have worked on all sorts of projects from rehabbing single-family homes, to noteworthy projects such as the 1996 Olympic village in Atlanta and major building projects with Publix Super Markets.
Over the course of the workshop I learned several key strategies that are working in today’s market. Here are the top five lessons I learned from Tony and Pete.
1. You Can Turn Lemons Into Lemonade
On day one of the course we focused on ways to locate properties in the “hidden market.” These are houses that are often referred to as “shadow” inventory because they are in some stage of foreclosure. We learned how to offer distressed property owners the option of selling their home to an investor as an alternative to foreclosure. That’s one of the great thing about real estate investing… Investors can actually turn lemons into lemonade by providing solutions that help homeowners get out of a difficult situation so they can get their life back. How sweet is that?
2. Anyone Can Be Successful, IF You Do What Works
“We can’t solve problems by using the same kind of thinking we used when we created them.” ~Albert Einstein.
As the real estate market changes and evolves, you have to learn what works today in order to be successful. The foreclosure crisis has presented many unique opportunities for success. One such opportunity is the property preservation industry (cleaning out foreclosed homes and winterizing them), which is experiencing explosive growth and creating jobs for many. If you’re willing to change your thinking and learn something new, you’d be surprised at the level of success you can achieve, even in a struggling economy.
3. One Man’s Trash is Another Man’s Treasure
We spent day two in field viewing the properties that we researched the previous day. We saw nearly 20 houses in just about every condition imaginable… One house reminded me of the Allstate insurance commercial, where the character “Mayhem” was a raccoon in the attic. The house was an absolute wreck! There were holes in the ceiling and insulation everywhere!! But, to the savvy investor, houses like these are considered diamonds in the rough and can potentially yield big profits.
This was actually my favorite part of the training because we learned how to detect problems in a house that may not be apparent to the average buyer, such as foundation damage, soil erosion, poor water management, mold etc. We also learned how to estimate repairs and determine the true value of a property.
4. You Need to Use the Right Tools
Day three was all about using the right tools… Whether you’re doing research on a property or preparing for a rehab project, you need to use the right tools. We learned how to do title searches, contact asset managers and submit offers. We also learned some really cool ways to completely transform a property for $500 dollars or less over a weekend.
There are literally “tons” of free and low-cost software tools available to entrepreneurs. I am a big fan of technology and social networking because it has leveled the playing field for the “mom and pop” entrepreneur. With the right tools, you can research your market, make strategic connections, plot out a course of action, promote your product or service and measure your results.
I cannot overemphasize the value of Social Media… Social Media offers a cost-free way to promote your brand, and it also offers unprecedented access to key movers and shakers in just about any industry. I have made some of my strongest connections through social media, which has allowed me to learn directly from those who are at the top of their game.
5. Wash, Rinse and Repeat
Once you have a plan that works… simply wash, rinse and repeat. Consistent, focused action leads to success. It’s that simple. If you keep doing what works, you will make progress with every step and ultimately achieve our goals.
