People see me as a real estate lord. An overwhelming amount of individuals wants to know how they can make money with real estate. It’s exciting to hear about how a blue collar employee got into real estate without any background in it. I can recall when I was new, everything was frightening. It is the reason why I started slowly. I missed out on deals that were no-brainers and only required one to invest. I was afraid and did not know books were published on this and did not know how to research on market rents.
Most of you believe that you need to know a lot more than you already know to get started. In a display of transparency, I am going to share seven examples of things I didn’t find out till my foot set on investing in RE.
1. You do not need the perfect deal.
Perfection ends up in procrastination. Sometimes it is better to get it done compared to presenting a perfect product. My pursuit of perfection caused me to be sidelined instead of playing because I was not fit yet. The truth is, the value of your first investment is what you learned, and not what you earn. Target on making cash and buying properties in school districts and safe neighborhoods at below market price.
2. Do not undervalue the importance of relationships in RE.
When I was new in the industry, I was penny wise. Here is the fact that most of you do not know yet. People, who are not your brilliance, are the ones who bring you the majority of deals especially if you are new in the game. If individuals know how they can assist you, they will. Make sure that your friends know that you are looking to purchase good deals. To my shame, I didn’t focus on this; I was short-sighted. Make it a priority to help others.
3. It is less frightening than you think.
Lots of people do not get started because they do not know what to expect. All they can visualize is what they stand to lose. While it’s crucial to measure risk, one of the risks individuals fail to measure is what they stand to lose by the lack of investing. The truth is, you will never know everything in the field that you want to venture. You’ll find yourself learning at a high rate once set your foot in the game and own property.
4. Don’t fool yourself into thinking that you are an investor when you are an analyzer
So many people love talking about the game thinking that it means they’re playing it. They play on calculators to see the returns. Real estate is not fantasy football. You do not get points for watching others play and win.
5. Realize not knowing where the market going is OK.
I spend a significant amount of time thinking if I should buy, sell, or wait. Cash flow is the equalizer in RE. If the market rises, I make lots of money when selling. If the market depreciates, I don’t lose anything if I don’t sell. I cannot predict the market flow, but I know families are going to need a place to stay.
6. You CAN overcome the lack of sufficient reserves.
I didn’t need that much in the past because of my disposable income. However, if you are not acquiring because you do not have enough in reserves, that is no excuse. R E investing is still a business; it’s putting money to work for you while assuming some risk while in the act. If you are trying to use real estate as a way to build wealth but you are not creating wealth with what you have, then, you are not ready for this.
7. Finding a support system is very possible.
Support systems are necessary, but if you are reading this, you already have access to one. Not starting because you do not have a support system is silly. Reaching out and find one like Real Estate Virtual Tours. Your future you is dependent on your present action. Don’t be like the former me.