How to Succeed in Real Estate Without Really Trying

Some people in real estate always seem to be out at the golf course, or spending time with their friends and family, and doing a lot of things that have very little to do with their supposed profession. How do you become one of those people?

There are two principles, rules, commandments, whatever you want to call them, that the aspiring real estate retiree should live by, and they're extremely simple, but (as is always the case), that doesn't mean they're necessarily easy to follow.

Commandment 1: Do Fewer Deals

Well, that doesn't sound like a good idea, does it? I mean, doing real estate deals, whether flipping contracts, buying and renovating properties, or building a rental empire, is how we in the real estate investing world make our living, right?

Yes. Of course. You're right. But guess what? Every real estate deal you do exposes you to a dizzying amount of risk, most of which you won't see before it's too late. That risk includes litigation (real estate is one of the most litigious industries in America), unexpected costs (you didn't know the framing underneath the walls was rotten and needs to be replaced, did you?), market dropoffs (look how many people fell last year), and a million other hidden dangers.

This means you need to do as few deals as possible, but make them as lucrative as possible. I assure you, it's better to do three deals per year and make $30,000 apiece than thirty deals at $4,000 apiece. Less risk, and, you got it, LESS WORK!

Ok, well how do you find these golden deals? They sound like a pretty myth. Which brings us to...

Commandment 2: Be the Most Popular Person in your Market

Being popular as an adult isn't nearly as hard as being popular when you're a teenager, so don't despair quite yet. But it is, of course, hard work to get there, and (confession time) hard work to stay there, but maintaining social relationships doesn't have to be unpleasant. Remember how that real estate guy you envy is always out on the golf course? Guess what he's doing?

But starting is challenging, so let's get back to business here. First, join at least three real estate investment clubs in your area, and try to make them the biggest or best ones available. If you don't know where to find them, here's a list of real estate investment clubs broken down by state.

Make friends, invite them out for drinks, invite them and their spouses over for dinner parties, tell jokes, be yourself... get the idea? Sure, these people are your competition, but forget competition and think collaboration.

All right, now you've met some fellow real estate investors, that's great. You also need to get friendly with some hard money lenders, loan personnel from local banks, licensed contractors, inexpensive but able handymen, title companies, wholesalers and even your own tenants. Here's why.

Small banks and hard money lenders are going to finance your deals, be they renovation purchases, permanent refinances for rental properties, whatever. Hard money lenders also work with a lot of wholesalers, who can help you find good scores.

Contractors and handymen, aside from the obvious work they'll be doing on your rental properties and renovations, live and work everyday in the trenches. They're immersed in the neighborhoods you're investing in, and they can turn you on to good deals, provided you make it clear that there's something in the pie for them.

Title companies, if you establish a close enough relationship, will cut you some slack on their (grossly inflated) fees. Beyond that, they work with a LOT of people in the real estate investing industry, and can call you when a buyer bails out of a good deal, or introduce you to lenders, etc.

Tenants... tenants are huge. Most landlords and rental owners try to minimize their contact with tenants, but you should be as friendly with them as you can. First, this will minimize the odds of them suing you (tenants love to sue landlords - sad truth), but they can also help you find new tenants, or let you know about distressed neighbors that need to sell quickly, and generally keep you well informed on what's going on in the neighborhood. If you need a free rental application form, grab one below, and remember to keep your tenants happy.

The best deals aren't advertised, a truth you've probably learned by now. So start networking, avoid mediocre deals like the plague, and wait for the behemoths, because they're out there and they'll give you a rich, leisurely life.

About the Author:
Brian Davis is a real estate investor and rental owner currently traveling the country. When he's not hosting his photography at gallery exhibitions or collecting rental income, he helps create content for EZ Landlord Forms, a provider of real estate forms (have a free rental application) and online property management software.