One of the biggest threats to those taking on full time real estate investing is stalling cash flow. If you aren’t building a pipeline of deals you are not only setting yourself up for a big fall but are missing out on masses of money that will be picked up by others.
Those who are already cash rich and take on the odd rehab deal as a hobby might be able to afford to go a few months without a paycheck but can you? In order to keep the cash coming in, make sure that you are liquid enough to handle any emergencies or extra expenses that come up and make up for deals that fall apart you need to have a pipeline of real estate investing deals in the works at all times. Otherwise if that one big deal you are working on right now falls out you are going to find yourself back at ground zero.
This is even more important today when transactions can take a long time to complete. REOs and short sales can still takes months as can finding sweet deals from old ladies with tons of equity as they still may need time to find somewhere else to go.
On the other side of the coin, imagine if you had been really cultivating every possible lead and connection from 12 to 18 months ago. Many of those people may not only be able to qualify for loans to buy your homes right now they are probably a lot more eager to do so.
You may still be running into many buyers today who have bad credit or don’t have enough don’t payment saved to flip your real estate investing deals too but with a little guidance they could be your best prospects in the next 6-12 months. Just imagine what adding a few of these leads a day could mean for you real estate investing business next year!
Get them into your database, connect with them via social media, work with them, develop loyalty and ask for referrals and in 12 months from now you could be swimming in far more deals than you can handle. If that’s too much for you, you can certainly refer them to someone else for a fee and still make great money with less work.
