People constantly ask me how do you find these kind of properties?  “Diamonds in the Rough”, some call them! The most common alibi I hear is —There’s no properties in my hometown like you write about!  With very few exceptions, I must disagree.  The properties are there! You simply haven’t found them yet.  There are several different reasons why you haven’t; however, I’ve found most folks simply haven’t been looking for them.  Most investors I know tend to do the traditional kind of property searching.  If they decide to be apartment owners, they mostly look at traditional apartment buildings.  Single house investors generally drive thru the “Burbs” in search of prey.  Hardly anyone is goofy enough to buy slaughterhouses or an old motor lodge.  I’m going to suggest that you broaden your vision a bit.  After all, “non-traditional properties” can be lots more fun – as well as more profitable.

Buying income properties has always demanded a reasonable clear-cut vision of investment goals, plus a large oversized portion of plain old blind faith from those who do it with much success.  It’s almost always the rule rather than exception, that people who observe a serious investor at work, secretly think — This time he’s really lost all his marbles on this latest deal.  That’s a perfectly natural reaction from “faint-hearted” observers watching
from the sidelines.

Many people are a bit too short-sighted to be good investors!  They lack one fundamental requirement which I call “Long-Term Thinking”.  Folks without “Long-Term Thinking” are really not investors.  More often they’re like speculators looking for an easy path to wealth.  Many are easy prey for the “Get Rich Quick” gurus whose techniques contain enough “hot air” to fill several Goodyear blimps.  “Hot air” is not an ingredient you need for success.  It only delays it!

EXPANDING YOUR VISION CREATES OPPORTUNITY

Quite often you’ll find the biggest rewards are off the beaten pathway.  Changing where you look might be your first step towards “big bucks” and real cash flow.  Stop and think about investing a little differently!  Isn’t it the folks with vision who always seem to get there first and make the most money?  Followers are always lagging behind and are never quite certain about where they’re going.  Quite often they show up too late – or become victims of a “bidding war” – paying too much for a property.  Many “traditional-type” investors I know have long since given up any hope of making a profit!  They feel lucky if they just break even.  Their greatest concern is will they ever get their original investment money back.

FINDING PROFITS – NOT LOTS OF HOUSES

The first thing to do is not panic!  My kind of properties are almost always available — You simply haven’t discovered them yet.  Finding the right properties, meaning the kind that will produce monthly cash flow and long-term profits, is one of the most important skills you must develop to enjoy any success in this business! Remember, if this was too easy, everybody would be doing it and we’d all be rich!  Finding properties that will earn respectable profits is one of the biggest challenges for every investor regardless of how many properties might be for sale in his buying area.

You must always keep in mind - finding profitable deals is our goal - not finding lots of deals! Pattern your buying methods after that old Hills Brothers TV coffee commercial a few years back. “90% of all the world’s coffee beans are rejected by Hills buyers — They’re sold to the other guys.” The truth is, about that same percentage should apply to buying the right kind of real estate unless you’re only doing this stuff as a hobby. Quality deals are the ones that make money.  Do not substitute profits for volume.  It makes very little sense to hurry up and buy a loser!