“And That is Where the Real Estate Business is Going - it’s Going Back.”
This is a guest article written by Spike Spencer and first appeared in our collaborative e-book “The Future of Property,” which features 17 thought leadership articles covering PropTech, property investment and housing. You can download your free copy here.
Back in the 90s, Spike Spencer heard a guy on the radio say he could make money with no credit, no money, and no risk investing in real estate. Fortunately, he naively believed this. He has been in real estate investment for over 20 years now. Mostly with other people’s money. He has wholesaled, flipped, purchased, partnered, landlorded, and renovated many properties (single and multi units) and shared how to do it with everyone who will listen. Spike is a speaker, author, cheerleader, and executive consultant/coach for real estate investment breakthrough strategies.
Contact Spike Spencer at www.FairWindsInvestmentGroup.com and www.SpeakerSpike.com
“And that is where the real estate business is going - it’s going back.”
Real estate investment has gone high tech. Hooray! And Booooooo! Follow me here. I got started in real estate investing before the internet really hit its stride. Nobody really knew what the heck it was all about. Was it a fad? Could it be the next big thing? Would it destroy us all? Well, we now know the answers. Fad? No. Next big thing? Well, yeah. Will it destroy us all? That is yet to be seen. In some ways it already has, but that is for another discussion. What the internet has done, is make it so much easier to find information.
You want to know who the owner of a property is? Look online and you can probably find out in about 30 seconds, if you know where to look. Need to know real estate trends? The information abounds. Need to email blast 10,000 realtors for something? Easy. Need skip-tracing to find a deadbeat? Well, just look up their Facebook or Instagram account. You’ll probably find a picture of them working on a margarita as big as their head. And the chances are, they will tell you exactly where they are doing it. Brilliant.
“The number of amazing things happening in the world of real estate via the internet is mind boggling.”
Bottom line is, that the internet is amazing, and has opened up the world of real estate investing to the masses. No longer is the “Secret” knowledge of how to buy properties with “no-money-down” solely the wisdom of late night gurus hocking their programs. Now the secret to real estate riches is everywhere to be found. You just have to take the time to read, learn, digest, and ACT!
The number of amazing things happening in the world of real estate via the internet is mind boggling. And it is only getting bigger, faster, and more powerful. It actually may not be too long before we can download information directly into our thirsty craniums, Matrix style. By itself, this is all a good thing. Having a vast array of knowledge at our fingertips allows us to discern what is and is not a good deal, faster and with more precision. We can hunt for deals all day long on various websites. Or we can hire someone else to do it. I know people who outsource almost all of their business processes and do very well.
It seems like everyone is doing great, making money flipping houses, renting out their properties on AirBnB, making bucks buying multi-family projects, and everyone is getting RICH! And here we meet the downfall of the Interwebs…You see, human behavior is a funny thing. It doesn’t change much. Regardless of technology. There are a lot of people making a lot of money in real estate now. Many of whom, will thank technology for making it easier, for sure. And it has made things easier - for those who are willing to take the action to utilize it.
There is always the vast majority that will not take action. They may want to, but they won’t. They may buy a course, make a few phone calls, maybe even send out a few offers. That will be the extent of it. The point I am making is that the people taking action now, would probably have taken action before the internet, as I did. And the people who are sitting around frustrated at not making the kind of money they want, would have done exactly the same thing had the internet never been invented.
“There may be unlimited amounts of knowledge at everyone’s fingertips. There may be unlimited resources and opportunities to be found around every corner. But that will not change the fact that there will always be a those who will never have success.”
The biggest problem now, is that they can see everyone else’s success online, staring them in the face, making them uneasy, sad, even angry. Angry at “those” people. The “successes.” Even though, they now have more opportunities than ever before to find and make successful real estate deals. Some people succeed and some do not. The credit does not go to technology, nor does the blame. It is all a simple tool. How it is used, determines the outcome for each individual on their own merit, based on their own efforts. Use it well = Success! Use it wrong = frustration, failure, and pain. Boo the internet! Uh, I mean Hooray!
There may be unlimited amounts of knowledge at everyone’s fingertips. There may be unlimited resources and opportunities to be found around every corner. But that will not change the fact that there will always be a those who will never have success. The only new thing is that there are now unlimited things they can be used as excuses! It does not matter how much technology changes and/or improves. Human nature will remain about the same. Many more people will make vast fortunes, but the vast majority of others will not. And they will blame technology. Just “too much to learn,” and “it’s so hard…”
I’m just speaking of real estate investment here. It’s not a class thing, and we are starting to see that now. Almost everyone has access to the internet. The playing fields have been leveled. The “secret” to success is that there is no secret. Some will, some won’t. And that hasn’t changed since I had to go digging through dusty courthouse books to find property owners’ information and hunt down deals.
There is an interesting trend I am seeing though. With so much technology bringing us all so much closer together, no one seems to actually know anything. Any time anything is posted as fact anywhere on the Interwebs, there are immediately 10 counterpoint opinions with opposing views, different “facts,” and any number of conspiracy theories regarding any and all aspects of said information. How do you know anything about anything?!
“Do not rely on technology to take the place of good old fashioned leg work.”
And here I bring it around full circle for you: relationships. Real estate always has been, and always will be, a business of real, true, on-going relationships with all those you do business with. You want to know what is real? Ask someone who actually knows; someone who has a vested interest in the property, project, or field of expertise in which you are interested.
Do not rely on technology to take the place of good old fashioned leg work. Shake those hands, make those phone calls, do the work of getting to know the people you are dealing with.
I have made far more money and better deals from people who told me about deals that no one else knew about. They weren’t on some website that had already been picked over by a thousand other investors who passed on it. And that is where the real estate business is going - it’s going back. Back to solid relationship building. Back to real human interaction. Back to the people willing to take the action that immobilizes others.
You can study how to buy property all day long. Anyone can do that. If you become the investor who understands how to develop strong relationships with good people who share your values and have similar vision…Well, then you really don’t need the Interwebs, do you?
- Written by Spike Spencer
