How To Thrive In A Slowing Market - Don Loyd

I lead a real estate investment club in which most of the members are relatively new to real estate investing. Until recently, they could purchase anything locally and be assured of a quick profit. They could make bad choices and still look good. Some of those same people are now feeling the pinch of reality as the local market slows to a more normal rate.

Having been in robust markets that have cooled to a recession level (a recession being when they lose money, a depression being when I do), I know there are certain things professional real estate investors can do to prosper in any market. Here are my seven steps:

Have a Plan
The first step is to have a plan. If you don’t have a plan, you are planning to fail – as the saying goes. Having a plan assumes you have clearly defined, written out goals. If you work your plan on a daily basis you will create wealth as you achieve your goals. Included in your plan should be time for business, family and spiritual – don’t forget the spiritual part of the equation. It brings the whole into balance.

Make a Schedule
The second step is to work a schedule. If you want to prosper, make a schedule and keep to it. Plan your day. You want to control events rather than have them control you. Have a fixed time each day for prospecting when you do not take phone calls, a time for appointments and to go real estate closing, etc. You will create more wealth if you discipline yourself to follow this simple second step.

Prioritize Your Activity
The third step is to prioritize. Not all activity on your schedule is of the same importance. Do the most important thing first and work down your list. If you have to find the funds to close a transaction, keep at it until you have it done. Tasks that have less importance can be relegated to an assistant. My assistant relives me of so much work it is unbelievable.

Work Only With Motivated Sellers and Qualified Buyers
The fourth step is to only spend time talking to motivated sellers and qualify all your prospects. It is a waste of time to talk to sellers who are really not motivated. In the inflated equity of our local market many have put their houses up for sale just to see what will happen hoping to get lucky. If a seller is not motivated the results can be discouraging and a waste or your time.
Don’t waste the buyer’s time either. It is fairly easy to determine if a buyer is serious or just dreaming. It is okay to have them dream on your time as long as you are secure knowing that you can help them achieve the dream.

Education
The fifth step is to take time each day to further your education. Learn different techniques that will make you a better buyer, seller, negotiator, entrepreneur, closer, or will bring you current with various markets and trends. I spend the first hour of each morning increasing my real estate knowledge. At the gym each morning you will find me reading another book on an investment related subject while doing my cardio.

Attitude
The sixth step involves having a right kind of attitude. The fact is, bad things will happen during the day. The question becomes, will it control you, or will you deal with the bad stuff and make something good out of it?

All of us face circumstances we were not planning. What helps make one successful is how he or she handles the unexpected. I embrace the philosophy that says there is good in all situations – you just have to look for it. If a deal turns into a lemon I will try to make lemonade with it, sell it, and create wealth.

Plan to Give
The seventh step involves an idea that has been relegated to the rear of the philosophical bus. Most books and articles that tell us how to be successful are focused on “me.” They are all about what I want, when I want it. I think that is dead wrong. If you want to truly enjoy success you must first learn how to give away your wealth to others.

The principle of reciprocity is very real. The more you give, the more you get. I suggest that you learn to give away at least ten percent of whatever you earn. If you cannot do that, your wealth owns you rather than you owning it. You can give to a charitable cause (you may even want to start one), educational foundations, mission projects – the list is endless - just give it with the thought of not receiving anything in return.

The result will be a satisfying, rich life. I give to others to enrich their lives. I not only share my wealth but also my time. For example, I donate Fridays to helping budding real estate investors. Learn to give and you'll be amazed at the results.

You can survive and even thrive in a slowing market. You just have to work smarter and plan for your success. Follow these seven steps and you will do well.