Nathan Street (Di Graziosi Success Academy) explains two approaches to real-estate investing: the "comfort path" (know your exit strategy before acquiring a property) and the "oh crap path" (make offers without an exit strategy and face stressful consequences). He contrasts outcomes: having a pre-arranged buyer/renter/lease-option or financing plan (comfort path) creates confidence and repeatable success, while buying without an exit leads to anxiety and likely quitting. He gives a concrete buyer example (cash buyer with proof of funds; criteria: 3 bed / 2 bath / 1,500 sq ft) and urges listeners to secure exit strategies before making offers.
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Nathan Street (Di Graziosi Success Academy).
A cash buyer with proof-of-funds whose criteria is 3 bedroom, 2 bath, 1,500 square feet.
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Hello, my name is Nathan street with the Di Graziosi Success Academy. I want to take a moment right now and talk to you a little bit about something in real estate. There's two paths in real estate that I like to work with and I want to identify them right now. Don't be offended with the way that I'm going to call them. And then I want to talk about how we can set ourselves on one or the other to make sure that we can comfortably go forward into this business, the business of real estate investing. There is what I call a comfort path and then what I like to call an oh crap path. Now one of those is our preference, the comfort path. The ah path I like to call it as well. The other is the oh crap path. Let me identify what that means specifically. Oh crap path means you've gone out, you found a property, super excited about this property and you go and you make an offer on the property. You're not sure what you're going to do with it. You just made an offer and the offer is accepted. Suddenly at this point you are on what I like to call the oh crap pat. Because we have, as of right now, in the scenario that I've given, have not created an exit strategy. That's one of the things that misses for us. The other path, the comfort path. This is the path that people want to be on. It sounds nicer. The comfort, the ah path. This is one knowing exactly what you will do with the property before you actually even get in with it. That could be that you find yourself a buyer. So you have a buyer before you even find the property. So that you know when you flip it to them, you already have someone there to purchase it. Maybe a renter ready to rent the property or a lease option. It may mean that you know that you're going to be doing a type of refinance or you'll be living in it, or you'll be doing some other type of setup or contribution to it. But you know before you ever get into the property, exactly what you will be doing when you create that, you will have much of a different feeling. For example, again, if you went out and found a property, super excited about the property and it fits the criteria of a buyer that you have already talked to and you know this buyer is a cash buyer, you've gotten a proof of funds, you know that their criteria is three bedroom, two bath, 1500 square feet. And the house you're looking at is a three bedroom, two bath, 1500 Square Feet. You go and you look at the house, you make an offer on the house below its market value and it gets accepted. Suddenly now you have the feeling of, ah, I'm going to make money on this because I already have a buyer. The whole circumstance of this business changed. Now why do I bring up the two paths? So many people, when they start into the business or real estate investing, go down the oh crap path and they for some reason decide that they want to jump into real estate and start making offers. Because that's you make money in the business or real estate, they themselves then get into the situation where it is accepted and they go, oh crap, now what do I do? Suddenly real estate is not as fun and let's say they go through, they finish the transaction, maybe make a little money. Their attitude now has fully changed about the business of real estate investing because now real estate investing is not a fun business, it's not an easy business, but rather a difficult, scary business. Because, man, if I have to keep doing and creating an ulcer every time I make an offer, I'm not going to keep doing this for very long. If you go down the wrong path, you can see by that example that you won't be going for very long. So if you'll take just the time to create your exit strategy before you ever get into the property. Create the buyer, create the renter, the lease optioner, or your financing opportunities, or your partnership, whatever it is, but create that before you get into the property. You will have the ah moment. And when you have those ah moments, you finish, say two weeks afterwards, you finished an awe moment and you're like, wow, that was so easy, let's do it again. We're on the other path. You go, I am scared to death to try that again. You will find, as you can see, greater success, quicker success and better opportunities for you. Take that opportunity, go out, find your exit strategies, remember those two different paths and make sure that you stay on the path that will help you to continue forward in the business of real estate investing.
