You can’t improve what you can’t measure.
When you’re not making any cash, it’s hard to fine-tune, tweak, and test your results. Of course it is, you don’t have any results to test! You need to get started making money before you can improve how you make it.
Yet, I see this regularly in those who flutter around from free opportunity to free opportunity, listen to advice from too many people, and ultimately end up in money making limbo. If you don’t start moving in one general direction, then how do you expect to anticipate the fineries of the trip?
It sure is hard to know how to get better at finding a suitable property to flip if you’ve never done it. But once you’ve found a good one, finding the next is a lot easier.
“I can’t find a good property because the market is inconsistent and I can’t find financing.”
You know there’s a problem (you’re not finding any houses), but you don’t know what to fix because you don’t know what’s broken.
If you’re looking for houses solely on the MLS and watching free videos on private money lending, but you aren’t finding the right deal, then I can tell you the problem…
The problem is you’re not acting.
When you’re not doing much, it sure makes it hard to improve.
Zero x 10 = Zero. 0. Nada.
Even if you have ten times what you have now, and what you have now is nothing, you’ll still have nothing.
However, if you expand your search to include new tools like Craiglist ads, direct mail inquiries, foreclosures, and networking with wholesalers, you’ll likely make a few connections. Then, you can work to improve those few connections until you have many connections.
Then, you’ll run the numbers and make a few offers. And the number of “not great”/unfinanceable deals will diminish until you have quality, money-making deals, and financing. Then, because you can measure how well your offers are doing by how many are being accepted by the seller and the private money lender (like COGO Capital who isn’t going to let you into a deal that will cost you money), and when you have good offers, you’ll make a deal. (Do you see how this is a lot like “If You Give a Mouse a Cookie”?)
And when you have a deal under contract and financing in order, you can run the project to the best of your ability, sell it, and look at the numbers. You determine what you did right and what needs improvement next time. You have key performance indicators on which to measure.
You can analyze your numbers when you have numbers, but not before. You can determine what areas of your business need improvement and better management after you’ve put in work and management, but not before.
And each project becomes a result to study and improve upon.
So, let’s say you’re currently at ground zero. Your finger is on the pulse of a few listings. You’d like to do 3-4 projects a year, averaging around 20,000 per project. That’ll yield a $60-80,000 income. But, for now, you’re not even making offers.
Multiply your current work effort by 100, and if you’re doing nothing, you still have nothing.
Let’s put it this way; if I I gave you the option to either take $1 million dollars today or 1 penny, multiplied every day for 30days (day 1 = 1 penny, day 2 = 2, day 3 = 4, day 5=8, etc.), which offer would you take?
You’d take the million dollars right?
If you’d take the million, you don’t understand the principle of compounding because if you’d taken the penny doubled every day for 30 days, you’d have $10.7 Million by day 30.
Repeat after me… You can’t compound nothing.
What’s your penny? What is the one step you can take to have a number (any number!) to multiply?
Is it a phone call? An offer? A home study course? A sledgehammer to a wall?
Whatever it is, go do it.