A frustrated first-time investor can't close deals and faces pushback from their agent. Here's why focusing on process over results and proper deal sourcing will change everything.
I got a question from one of my viewers - a focused, ambitious young guy who's unable to close his first real estate deal. There's tension with his agent, and he's asking about the current market situation. I think there's a lot to learn here about the right mental direction to get clear on outcomes, process, and how to focus properly.
The Real Problem: Who's the Client Here?
He writes: "I'm working in St. Louis mainly with one agent who is comfortable with me. But he only sends offers when the numbers are close to asking price. When there are significant gaps, he won't even submit the offer and acts like I'm being unreasonable to offer 20K below asking."
Let me tell you a story. Yesterday, I was at a buffet and asked for three different salads mixed in one bowl. The guy behind the counter refused, saying it wouldn't taste good or look aesthetic. But here's the question: who's eating the salad - the guy at the counter or me?
The same applies to your situation. Who is submitting the offer? Who's the client here? You want to offer 20K below asking price - that's YOUR offer, not his. If he's not willing to submit it, find someone else who will. It's not the agent's fault you're not submitting offers 20K below asking - it's YOUR fault for not finding another way to submit them.
Two Approaches to Deal Sourcing
There are only two legitimate approaches in real estate investing:
Approach 1: Shoot Then Aim
Send offers everywhere - thousands of them at 30% below asking without even seeing the property. Out of 10,000 offers, maybe 10 get accepted, then you focus and do your due diligence.
Approach 2: Aim Then Shoot (My Preferred Method)
Focus on creating relationships with people who give you deals. See the property before going under contract. Only then negotiate price and submit an offer.
What you're doing is neither approach - you're stuck in the middle. You're focusing attention on one property but not really learning it, not visiting, not talking with the seller. You just submit an offer based on photos and videos.
The Right Way: Communication First
Offers should be verbal before they're written. Talk to people. Ask questions like:
- "How much would you be willing to take for this property?"
- "Do you have any wiggle room in the price?"
- "Are you flexible on price?"
If they say the minimum is $117K cash, and your number is $90K, you know it won't work. But if they ask what works for you, you can explain your position. Maybe they'll surprise you.
Your Deal Sourcing Process is Wrong
You mentioned getting outbid on a property where you sent your contractor photos and videos for estimates, never talked to the seller, and had no idea about other offers or competitors. This is why you got outbid.
Here's the right approach:
- Get other people to source deals for you - agents, wholesalers, people from forums who know your buying criteria
- Send someone to the property - not for photos/videos, but for an actual walkthrough by someone educated in real estate
- Get their opinion on the property, mechanicals, neighborhood, seller situation, and value
- Make offers verbally first - negotiate and communicate with the seller to understand the situation
Real Example: My North Carolina Deal
I had a listing agent tell me: "If you purchase in cash and close within two weeks, my seller will love it." We crafted an all-cash offer with a two-week close and five-day inspection. Got it under contract for $60K, ended up buying for $50K after finding issues during due diligence. Renovated for $32K, sold six months later for $142,800.
Same system I'm teaching you.
The Market Reality
You're right - the market is tough. Prices are high, inventory is low, most houses are renovated to high standards. My advice: focus on off-market connections. Don't play the on-market game right now. Build relationships with wholesalers and specialized realtors who have access to off-market deals.
Don't Worry About Financing Yet
Focus on finding good deals first. If the deal is good, money will follow. Someone will want to participate. A 23-year-old ex-OpenAI employee just raised $1.5 billion for his hedge fund. You need $100K, not $1.5 billion. You have no excuses.
If no one wants to invest in your deal, it's not a good deal - or you're not presenting it right.
The Mental Framework: Process Over Results
Stop comparing yourself to other influencers. You don't know their full context - their experience, background, how long they've been doing this, or what challenges they face. When you compare yourself to others, you're comparing results.
Their results come from their efforts, knowledge, and experience. You know 100% of your own context but 0% of theirs.
Instead, compare yourself to where you were months or years ago. Focus on improvement, not results. Come to the real estate market every day and focus on getting better at the process.
Don't focus on results. Focus on becoming the person who closes deals. It's about the becoming, not just the deal itself.
Keep improving, keep communicating, keep building relationships. The money will follow.