Keys to Real Estate Success: Mark Skowron Shares His Secrets

Real estate investing is a dynamic, ever-evolving field that requires not only financial skills but also a resilient mindset. To learn what it takes to navigate this challenging landscape, we talked to Mark Skowron, a seasoned investor and the founder of Festival Properties, a company making significant strides in the Chicago real estate market. Mark shared his unique journey, invaluable tips, and strategies that every aspiring and seasoned investor can learn from.

The Real Estate Investing Journey: How It All Began

Mark's foray into real estate didn’t come without its hurdles. With over 15 years in the industry, Mark's initiation into real estate was driven by the universal itch for wealth accumulation. It was this urge that propelled him into the Chicago real estate market around 2010-2011. Real estate, often regarded as the last frontier where individuals can amass significant wealth with relatively straightforward understanding, appealed to Mark's ambitions.

Mark got into real estate after reading "Think and Grow Rich"

Initially, Mark used bandit signs—a traditional yet effective marketing method—to secure his first deals. "I read Think and Grow Rich, and it really got me motivated," he recalls. Despite the lack of comprehensive online resources, which are abundant today, Mark navigated through trial and error, learning crucial lessons on the go. His journey began with humble beginnings, from manually writing out signs to placing them across neighborhoods in the dead of night.

Learning from Failures and Building Resilience

One of Mark's early lessons came from a botched deal due to lack of follow-up. He shared a story about a $13,000 property that was potentially worth $250,000 but nearly fell through because he didn't stay on top of necessary inspections and paperwork. "At that time, resources on how to close a deal were not as readily available as they are today," Mark mentioned. This experience taught him the importance of diligence, follow-up, and understanding every aspect of a transaction.

Mark emphasizes the importance of mindset in success. Failure, he says, is not just a part of the journey; it's an essential element that shapes a successful investor. "You get stinged, and it hurts, but those are the moments that build your resilience and teach you invaluable lessons."

Strategies for Success in Real Estate Investing

Communication with buyers is one of Mark's keys to success

With his extensive experience, Mark offers several strategies for finding and securing investments in a competitive market like Chicago:

• Define Your Goals: Know whether you want to wholesale, flip, or hold onto properties long-term. Each approach requires different areas and types of properties.

• Communication with Buyers: Start with understanding your buyers—what areas they prefer, their price points, and the type of properties they are interested in. This backward approach ensures that you have a ready buyer for the properties you buy.

• Area Analysis: For fix-and-flip properties, choose areas with high turnover rates, ensuring your investment doesn't sit unsold for extended periods. For long-term holds, focus on safe, stable neighborhoods that show promise for growth.

• Motivated Sellers: Finding motivated sellers in a saturated market can be challenging. Mark suggests leveraging past deals, reviews, and an active online presence. Networking through referrals from past clients and marketing through Google My Business can prove effective.

Building Trust with Home Sellers

Trust is pivotal in real estate transactions. Mark's approach is to be disarming and genuinely helpful. "You need to position yourself as someone who's been in this business a long time, is credible, and understands their situation," he explains. It's about more than just making an offer; it's about listening to the seller's needs and providing a tailored solution.

One of Mark's most memorable deals involved navigating the complex dynamics of a family estate sale. He had to coordinate with multiple brothers, each with their own grievances and issues. "This was more about patience and playing the role of a psychologist," Mark shared. Over nearly a year, he managed to negotiate and bring all parties to an agreement, showcasing that sometimes it's not just about the property but the people involved.

Staying Positive Amid Challenges

The real estate market is not all sunshine and profits. The stress and challenges are real and persistent. To cope, Mark advises focusing on long-term goals and finding personal methods of stress relief, be it through exercise, meditation, or simply taking a break.

Exercising helps Mark get through the challenges

An important aspect of staying positive is the ability to zoom out and look at the bigger picture. "One deal won't make or break you. It's about long-term vision and persistence," Mark asserts. He also emphasizes the mentality of "dribbling the ball"—continual, steady effort in making calls, following leads, and pushing through the daily grind.

The Future of Real Estate and Festival Properties

Looking ahead, Mark is cautiously optimistic. Despite the uncertainties around interest rates and market fluctuations, he believes in the principle of supply and demand. Cities with positive in-migration trends, like Dallas and Austin, are poised for long-term growth. Dialing in operational efficiencies, such as optimizing insurance and utility costs, is a current focus for Festival Properties.

Final Advice for Investors

Mark's advice to burgeoning investors is to embrace challenges as opportunities for growth. "Become battle-tested," he advises. It's the difficult times that shape one's resolve and skills. For those starting out, it's about mastering the basics, making calls, and having conversations. Continuous learning and application of core principles, like those in "The Four Agreements" by Don Miguel Ruiz, can profoundly impact success.

For those interested in learning more or connecting with Mark, he can be found on Facebook here. His journey is a testament to how perseverance, mindset, and strategic action can lead to success in real estate investing.

Mark Skowron’s story is a beacon for aspiring investors. By focusing on mindset, learning from failures, and building trust, anyone can navigate the complexities of real estate and create lasting success. Combine that with great seller lead source, and you have a winning combination.