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Are you new to this business? Are you new to real estate investing and want to start making a lot of money, but you're worried about what to do? You're in the right place. Here, I'm going to show you the top four biggest mistakes that rookie investors make, and I’ve done them all myself. I went full time in this business in 2008 and 2009, right in the middle of all kinds of economic uncertainty. Even though things were a mess, I saw a huge opportunity.

The first mistake I cover is investors cutting back on marketing during uncertain times. You have to keep the marketing machine churning to keep bringing in those leads. Mistake number two is being inconsistent with marketing. In addition to keeping your marketing going, you have to have a solid process. Mistake number three is giving up too easily when times get tough. You have to stick with this business in order for it to work. The last mistake is not delegating. Outsource the little things so you can bring in more deals.

Watch and Learn:

Listen and learn:

What’s inside:

  • Top four rookie mistakes in real estate investing
  • How to keep your marketing machine running
  • How to delegate and outsource tasks

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:  Hey, are you new to this business? Are you new to real estate investing? And you want to start making a lot of money, but you're worried about, like, what do I do? What do I not do? One of the biggest mistakes to avoid. You're in the right place. In this video, I'm going to show you the top four biggest mistakes that rookie investors make. And again, I've done this all myself. Number one, a rookie investor cuts back on their marketing during economic uncertainty. All right I remember when I got started in this business in 2008 and 2009, I went full time. The market was in a nosedive, right? Like there were people losing their houses left and right. Investors were coming, getting out of the business or going into bankruptcy, into foreclosures and short sales. And I got into the business pretty much in a wreck personally myself, because I had lost a lot of houses, but I saw a huge opportunity out there. And so I knew that if I was going to survive and thrive in this business, I needed to double down on my marketing. And so I learned early on by watching other investors who were scared we were running away from the market. There was an incredible opportunity. So I actually doubled down on my marketing, and I became really successful in 2008 and nine and quit my job flipping deals when everyone else was running to the hills. So I understood early on that we're not in the real estate investing business. We're in the marketing business. So the biggest mistake rookie investors make is cutting back on their marketing, doing less of it, not investing in their marketing during economic times of uncertainty. Right. So the expert investors, they're doubling down. They're doing more marketing. Right. Experienced investors look at marketing not as an expense but as an investment. And it's an investment that always returns back a positive ROI on that investment in money. And I would even say that marketing pays off more. You get a higher ROI during times of economic uncertainty. So you actually because, you know, there's not as many investors, there's not as many much competition marketing and there's more motivated sellers. So you may think, man, this isn't a good time. I need to be safe. I need to play it safe. I need to back off. No, but this is a time to double down. If the market is starting to get a little bit soft because more motivated sellers, fewer investors chasing those more motivated sellers, right?

Joe:  So it's important that you always stay consistent in your marketing. Which leads to the biggest mistake number two, that beginning rookie investors make is they're not consistent with their marketing. And I learned this. You know, I understood early on the importance of marketing. But my marketing wasn't consistent as it should be because this is what happened to me. I did not do a lot of marketing, get a lot of leads, and then all of a sudden get really busy. I've got some contracts, properties under contract. I need to sell these deals. And so I get really busy trying to flip these properties that I have under contract. And I stop my marketing, all my lead generation activities, I stop it. And so then what happens is I get real busy. A couple three months later, I sell my deals and I've got a lot of money and I'm all excited. But I turn around and guess what? My pipeline is empty. I have no new leads coming in, which is a disaster. So it's not like you can just turn on a slight switch and lead start flooding in again. It takes time to build that momentum. This is one of the most important principles in real estate. Understand is the power of momentum, because it's not like, you know what? If you're pushing a train, which is your marketing engine, it's really hard at first, right? But once it gets going after two, one or 2 or 3 months, the momentum starts to build. You start getting a lot of leads. Guess what? The deals that you start getting aren't from the leads that are just coming in their leads that you've been following up with for a couple three months. So this important principle of momentum, you've got to make sure you understand that. So if you're a rookie and you're not consistent with your marketing, you're always going to be struggling with staying consistently, doing deals and making a lot of money. Okay, so an experienced investor understands this and is always doing their marketing. So a rookie you know they get busy. They forget life gets in the way. They stop doing the marketing. But the experienced investor says, you know what, I'm busy. The experienced investor is just as busy, right? But they realize I need to get somebody else to do this marketing for me. And I like to call this getting their marketing done for you in spite of you. So the first thing you should do is find somebody else, whether it's a virtual assistant, it's one of your kids, like I did. If it's a marketing company, an agency or something, get somebody else to do that marketing for you. Get it off your plate so you can focus on this. I'm going to talk about this later here, but you can focus on high revenue generating activities like talking to sellers and making offers. So always make sure there's somebody else that's filling your pipeline. So no matter how busy you are working your deals, you've got somebody else filling that pipeline with leads. You'll never, ever suffer for money if you can have consistent lead. For I was talking to a client the other day who was a little struggling a little bit and was kind of complaining about things are slow and they're not making much money. And I talk about this a lot, data, not drama. And I said. Hey, listen. Show me the numbers, okay? Let's look at the data. Cause he was getting real emotional, and I was kind of getting stressed out. Like, why? I feel bad that this isn't working, you know? And he said, let's look at the numbers. Show me the data. And so the next call, he pulled up a spreadsheet, and he actually felt better about how things were going when he looked at the numbers and when he looked at the numbers, you realize, man, I haven't been actually doing as much working as I thought I was, right. And then we could see what the problem was. He was making a lot of offers for a period of time. But the problem was he hadn't done any new marketing in the last four months. He was so busy working all these leads that he got that he shut off the marketing. He was making a lot of offers. Not all of the deals came through. Some of them fell apart because he found out later it wasn't a good deal or something was wrong with the property or whatnot, right? So when we looked at the data, he realized, oh, you know, my numbers were actually good. I was making a good return on leads that came in from the marketing. I was getting a good number of offers accepted from the as a percentage of the offers I was sending out, but the problem was he wasn't consistent in his marketing. So how do we fix the problem? It's really easy. Let's start doing the marketing again. Let's get somebody else to do it. So the leads just start coming back consistently in. And I'm not talking about like having to spend thousands and thousands of dollars. There's cheap forms of marketing that you can do that you can just somebody else can do for you. All right. Data not drama.

Joe:  All right. Rookie mistake number three. They give up too easily. They quit too quickly. Right. It's like no nonono, don't give up. You got to stay with it. You got to understand that most of your deals are going to come from the follow up. All right. We did over a period of 12 months. This was about a year or two ago. And we look back on the previous 12 months. We did 58 deals in that 12 month period. And you know what? We looked at Relooked real closely at our numbers. Of those 58 deals, only four came from the first contact with the seller. 54 of our 58 deals came from follow up. Guess what? If we would not have done any follow up? If we would have just quit, we would have only done four deals that year, only four deals. But because we were consistent with the follow up, we found on average it took 3 to 4 months of follow up, 7 to 8 touches. A follow up before we actually did one of those deals. Now some deals we only followed up a couple times. Some of them we followed up over a year's period of just consistently following up. If I'm telling you the money is in the follow up, it's really, really important that you remember that and don't quit or give up because you're sitting on a goldmine. A lot of you guys, you've done a bunch of marketing, you've made a bunch of offers, and maybe none of has come to pass or, you know, and you're discouraged. You've made ten offers and you haven't gotten a deal yet. You made 20 offers. Not done a deal yet. Don't be discouraged because you have a huge you're sitting on a huge goldmine. And in fact, there may be other investors that you network with that are in your Facebook groups that are in the real estate clubs or who are in Bigger pockets, and different websites that you know where these investors are hanging out. A lot of them have old leads and they've given up on those old leads. What if you approach some of those investors and say, hey, let me follow up with your old leads for you and we'll split the deals. So an experienced investor understands the importance of follow up, right? They've outsourced their marketing. Somebody else is doing that, and they're focusing on their high revenue generating activities of calling sellers multiple times, following up over and over again, sending them a letter in the mail every 30 days, sending them an offer every 60 days, you know, texting them, emailing them, whatever it takes. They're consistently following up. They are not quitting and giving up. So if you're a rookie, you can avoid this mistake so easily by just refusing, determining in advance that you're not going to quit or give up. Let me say something else to this too. This is so important. So a lot of times people come into this business to say, you know what? I'm going to I'm going to dip my toe in the water, right? I'm just going to try it out. I'm just going to maybe send 100 postcards. Maybe I'm going to make 50 offers, or maybe I'm going to send a thousand letters or try cold calling for a few days. And if it worked is see if it works or not. Listen, if that's kind of your attitude, I would say, don't even start. Just quit. No. Just like, don't even do it. I would say, don't even come into this business or real estate investing unless you are willing to stick with it for at least six months without doing a deal. Now, if you have that attitude, you'll probably do a deal in a couple three months, right? I have clients right now in southwest Missouri and, who are from Texas doing deals in Tennessee right now, where they're getting huge deals within the first couple of months. But that's not always the case, right? You need to have a longer term horizon and you need to know that. All right. So if I can't do a deal in the first one or 2 or 3 months, I'm not going to get discouraged. I'm not going to quit. You need to have that long of a runway. If you're going to succeed now, you might do a deal. You might not. I know people that did took them 6 to 12 months before they did their first deal, but they're millionaires right now because they didn't quit and they didn't give up. So if you're just like, I'm going to try it out for a month or two and see if it works, just save your money, go do something else, go join some network marketing company or something. I don't know, but like don't get into real estate investing because it takes a lot of marketing. It takes a lot of follow up. You got to make a lot of offers now. It's a very profitable business. Is it worth it? Yes. This is the best business in the world, in my opinion. If you want to make money fast, but you've got to be committed to it. You got to have the stick to it to stay in the business for a long time. Does that make sense? All right.

Joe:  The fourth biggest rookie mistake is they don't delegate. They've undervalue their time. They don't outsource the little things. Right. So there's $5 an hour activities and there's $500 an hour and activities. And I've been kind of alluding to this throughout the video here. You've got to outsource all of your $5 an hour activities to virtual assistants, to your kids, to somebody else. Right? So you can focus on the five $100 an hour activities. If you think that you have to do it all yourself, you are so mistaken. In fact, I look back on all the deals that I've done and everybody that I know that does a lot of deals. I have probably never done one deal. I don't know all ofmy deals I can think of, but I don't think I've ever done one deal where I've done 100% of everything all by myself. I always partner with people. I might hire a realtor, I hire an agency to do my ads. I hire a virtual assistant and do the follow up. I partner with other local wholesalers on the ground to sell my deals or whatever. I am always partnering with other people and I'd encourage you to do that as well, especially if you're new in the business. You don't have the experience yet. You may not have the money, you may not know how the paperwork works. She may not have the title companies. You know, you don't know anything. What you don't know, right? So partner with somebody who does the right. And if you need money for earnest money, deposit, right. If you need money to buy the deal, if you need help advertising the property and finding the buyers, if you don't know how the contracts work, if you don't know how to title companies, you don't know the title companies that will do creative financing for you. Deals. Find somebody who's done it before and partner with them. All right. So I say this to like, don't try to fix your weaknesses. Outsource them. If you're not good at the computer, find somebody who is right. If you're not good at talking to sellers, find somebody who has and partner with them. So stop trying to do everything by yourself. Find somebody else with more experience and partner with them on your deals. All right.

Joe:  So in summary, here are four rules I kind of talked about the mistakes. Right. But here are four things that you should be focusing on. These are the four rules of success in this real estate investing business. Right. It's really simple. Number one always be marketing okay. Always be sending out your marketing. You should have a scorecard of like if you want to do ten grand a month, you work backwards from there and you know, all right, every day I need to call five realtors. I need to do two hours of cold calling. I need to send 20 yellow letters. I need to send 500 postcards a week. I need to send a thousand letters a month or whatever it is. You should know your numbers. And every day you should know what kind of marketing needs to be done, and then find somebody else to do all of that marketing for you. All right. Rule number one, always be marketing. Rule number two, talk to five sellers a day. This is some of the most valuable use of your time. Talk to five people a day. It could be a realtor. It could be a property manager, another investor, a seller for sale by owner or landlord, whatever. Talk to five people a day. Rule number three is make an offer to every seller you talked to. I did this video recently about this where when you're talking to people, always ask them two questions, you know, do you have any deals you're looking to sell? Do you have any deals you're looking to buy? And when you talk to enough people, you're going to find somebody who has a deal they want to sell, somebody else has a deal, want to buy. And you can wholesale these deals to each other, right? That's how you make money in this business as you talk to people. The fourth rule is follow up with every offer that you make every 30 days. Okay. Always be marketing. Get somebody to do it for you in spite of you. Talk to five sellers a day. Make an offer to every seller you talk to. When you make the offer, send it in an email, in a text, in the physical mail, smoke signals, FedEx, carrier pigeons, whatever it is, make offers. Okay? And fourth, follow up with every offer that you've made for 30 days, every 30 days. Rather until they say no or they die or they sell their property. Like even if they say no, rather always be following up with them. But that's how you're going to do deals in this business, okay? You've got to be committed for the long haul. Most people quit, most people quit and they give up too soon. I don't want that to be you. All right? So, hey, if you like this video, let me know in the comments down below. Please let me know. Did you something I say resonate with you? Is there something else that I left out that you want me to do more videos about? If you think this is cool, let me know in the comments. I really appreciate it. Subscribe to my channel and give me a thumbs up. And if you want more information, if you want to see the script that I use, the marketing that I use, the contracts that I use, go to Simple Land kit.com. It's free, Simple Land kit.com or the link is in the description down below. Appreciate you guys. We'll see you on the next one.

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