I was recently driving down the road, as I frequently do as a full-time investor in here Dallas and the owner of a HomeVestors franchise, and I heard a story on the news that said only about 7 percent of the new vehicles sold today are manual or stick shift transmissions.
This caught my ear because I had recently purchased a stick shift for my son who had just turned 16. He had heard me talk about how my first car was a stick shift and how much I had enjoyed it. And, how much of a challenge it was initially. It was something I will never regret owning or doing. As life goes on your needs change, and maybe a stick shift is no longer practical as you move through your life and address your different driving needs.
Because of my experience, my son thought he wanted his first car to be a stick shift, too. That is why this news story caught my ear, because I had just been through this with my son and the purchase of his vehicle.
The second part of the story
As with driving a stick shift, many potential real estate investors never buy that first house because they are afraid.
The second part of this story I heard on the news was the fact they said the reason people are no longer purchasing stick shift vehicles is because today’s young drivers see the stick shift as a distraction.
It will distract them from texting, checking Twitter, monitoring Facebook or checking their email.
The new generation of drivers do not want that stick shift because it takes their attention away from their mobile device they want to use in the car. That is a subject for a whole other blog post, but it was an interesting reality.
This made me think about real estate investing as I listened to this news story about the stick shift and the shrinking number of people purchasing these types of automobiles. As they walked through the reasoning it made me think, “Gosh, this is very similar and links directly to what I have experienced as a real estate investor.” I thought about what many real estate investors experience, especially those early on who are just thinking about it or doing it part-time.
Here’s what I mean: As with the stick shift, many never try it because they are just afraid. They say, “I am not going to buy a stick shift car. I am not going to get behind the wheel of a stick shift car because I do not want to publicly fail.” That is what I hear so many times from the “wannabe” investors considering real estate investing. They do not want to tell their friends, family members or co-workers they are investing in real estate or going to invest in real estate. They do not want to ultimately have to tell them that they have failed.
You have to overcome obstacles and fear of failure
First, what I tell those new potential investors is, “If you do not commit to the action, you have no chance of success.” You have to overcome the fear of failure and get out there and buy that first house. Much like you have to get behind the wheel of that stick shift car and overcome your fear and try it. You have to overcome the fear of failure so you can take advantage of the opportunity for success.
Secondly, as I listened to this news about the stick shift automobile I drew another correlation to real estate investing – if you are not focused as the driver of a manual transmission you will not succeed. There are so many things going on in terms of your pressing the gas, pressing the clutch, releasing the clutch, moving the stick shift, watching your rpms.
There are so many things going on you have to keep a handle on and stay focused to be successful. You cannot be negligent, lackadaisical, or leave out a step. You cannot go from first gear to fifth gear. It does not work. You cannot jump ahead.
And it is that exact same way in real estate investing.
There are so many moving parts. There is your lender, the seller, the house, the rehab, the loan, the closing company, the inspection, the insurance, the taxes, the renter – there are so many different aspects. Much like driving that stick shift transmission, you have to have extreme focus. You have to do all the steps and you cannot skip any step or you will not be successful.
Third, so many people who hop behind the wheel of a stick shift transmission quit the minute they stall or hit any difficulty. They stop. They get out of the car. They’re done and they say, “I’m never doing that again. I am never driving that again. Don’t ever ask me to do that again.”
I see that day in and day out in real estate investing. That new part-time investors purchase their first property, they get half way through the process – maybe they do not even make it to closing – and they throw up their arms, they stall, and they walk away. They get discouraged. They get overwhelmed and they quit.
You are going to stall in your real estate investing process
You are going to stall in your real estate investing process. I do not know where, and I do not know when, but I know it will happen and I know it will happen more than once. You have to recognize these are your learning moments. These will not be stall points in the future because you are going to learn how to address them and how to overcome them.
Be ready to overcome them. Don’t be ready to quit as a result of these obstacles.
Fourth, learning how to drive a stick shift automobile, for many people – and I am including myself in this group – is much like riding a bike. Once you learn how to do it, you never forget it. Even if you purchase a stick shift automobile at some point in your life and learn how to drive it, and then years later you hop behind the wheel of a manual transmission, it is amazing how it comes right back to you. Just like hopping back on that bike as an adult. You remember it and you look back and appreciate the fact that you took the time to learn this and do it while you had the opportunity. It is a skill that never really leaves you.
Real estate investing is much the same. Once you do that first deal, you will be shocked at how much easier the next deal becomes – and the next deal, and the next deal. As you learn more, do more and experience more you never forget those lessons and those experiences. You will be shocked at how much better of a buyer you will become. Or, how much better of a negotiator, rehabber or wholesaler you will become.
Whatever your niche in real estate, I guarantee you, you will never forget that learning and experience. You will never regret the fact that you made that first step to become a part-time real estate investor.
Another point that came to mind as I thought about these stick shift automobiles is that there are not many of them left out there. And the ones that are left, are high-performance. I thought about the obvious Porsche, Maserati, Lamborghini or that 1970s-model muscle car. All very unique, high-performance, all desirable and appealing.
It made me once again think about the real estate investor. And, think about the characteristics I see in many of my peers who are real estate investors who have made the leap and who have tried, stumbled, learned and kept their focus. They are all very high-performance people. They are seeking new and creative ways to maximize their investments and they are doing it through real estate. Many of them are high-performance people and ironically and many of them, as a result of their high-performance and success in real estate, they are driving those cars I just referenced – the Porsche, Maserati and Lamborghini.
Finally, what came to mind as I listened to this broadcast about the stick shift, I could not help but think about the fact the driver of the stick shift is making a sacrifice. Let’s go back to that uncomfortable point made earlier about the reason the current drivers are drifting away from the manual transmission. It was their desire not to be distracted from their favorite distractions of texting, checking Facebook, Twitter or following up email.
They are not willing to make the sacrifice to be distracted from their favorite distractions. They are not willing to make that sacrifice, unlike the real estate investor who must make sacrifices. Those who choose not to invest in real estate are those who do not want to make the sacrifice from their favorite distractions.
Real estate investors, to be successful, you are going to have to educate yourself. And guess what, you are going to have to sacrifice some nights at home in front of the TV. You may be at a real estate investing club meeting, you may be reading books or listening to podcasts. You are going to have to give up some time and make some sacrifices. Maybe you won’t buy that new car, swimming pool or boat. You are going to take those funds and invest them in real estate and you are going to sacrifice some of those toys you so want and desire.
You are going to make sacrifices. Are you willing to have to step away from some of your favorite distractions? Is it really a sacrifice when you see the results of a successful real estate investment?
In summary, it is not easy to be a part-time real estate investor. It’s not natural. It’s a lot of work and it requires some sacrifice just like driving a stick shift transmission. However, once you succeed at it, it is incredibly rewarding to be a part-time real estate investor. So I say, “Buy that first house.” Focus, recognize your learning moments, continuously improve, and commit to being a high-performing investor who is not afraid to sacrifice in order to achieve.
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