Financial freedom, passive income, abundance mentality, Cap Rates, ROI, and Rent/Value ratios are all terms we have discussed. They’re terms that are thrown around in different real estate investing circles. But how often do we, as real estate investors, step back and ask ourselves why? Why do we concern ourselves with these terms and metrics?
Real estate investing is a vehicle that can help you achieve many different goals. It’s versatile, works across many different markets, and is easy to replicate. However, it’s not the physical real estate that’s so great. Rather, it’s what real estate does for you. By now, we all know real estate investing can provide passive income, tax benefits, appreciation, and a hedge against inflation. Ultimately your investment is backed by a physical asset, which everyone on this planet needs – shelter!
No matter what your goals are, I believe that real estate investing is one of the best vehicles to build a life you want. Everyone has the ability to use real estate to their advantage. The passive income can allow you to live a life where you want and how you want.
This journey of real estate investing is one that everyone can start. There are just a few simple steps.
Step 1: Educate yourself. I know, this isn’t what you want to hear. It’s not quick. But in today’s age, it’s quite easy. Read books, jump in some online forums, go to real estate meetups. There are so many great free resources available – books, podcasts, online communities, meetups, just to name a few.
Step 2: Get around people who are doing what you want to do. Want to flip houses? Look up J. Scott, buy his books, and read his blogs. Want to own turnkey single family homes for passive income? Look up Keith Weinhold, listen to his podcast, subscribe to his newsletter, and read his articles. Want to buy apartments with other people’s money? Look up Vinney Chopra, Michael Blank, Joe Fairless, or Reed Goossens. Watch what they’re doing. Get around people who are doing what you want.
Motivational speaker Jim Rohn famously said that we are the average of the five people we spend the most time with. Evaluate who you spend time with. It’s okay if your circle isn’t exactly involved with what you’re interested in. But it’s a good sign they’re at least interested in improving themselves, growing, and pushing you too.
Step 3: Find your niche. Identify what you’re good at. Maybe you’re great with numbers and love analyzing deals. Or maybe you’re a great networker and can raise money from other people. Maybe you love creating systems and procedures to build businesses. Whatever it is, figure out what you’re good at and what you like. Then focus on that.
Once you find your strengths, you can then look for ways to work on your weaknesses. You could partner with someone who compliments you well. Or you can develop the skills you are lacking. Understanding your strengths and weaknesses will only help you know where and how to best spend your efforts.
Step 4: Do your first deal – whether that’s buying a small single family, wholesaling a deal to another investor, flipping a property, or investing with a syndication on a larger deal. Your first may not be the most impactful, but it will be the most important. It likely won’t move the needle for you, but it will get you started. That’s the biggest challenge for most people.
Doing your first deal can be scary. There are countless limiting beliefs that will come into your mind. Don’t worry, those are normal. If you’re not doing something that makes your uncomfortable, then you’re not doing enough.
Step 5: Use your strengths in step 3 to do another deal. This one will be smoother than the last. Then do another deal. And another. And another. Each deal will get easier with experience. You’ll hit different speed bumps and learn new things along the way. Make sure to continue to push yourself. Remember, people underestimate what they can do in a decade, and overestimate what they can do in a year.
Take a long approach with real estate investing. It’s not a get rich quick game, no matter what anyone tells you. Be in this for the long haul.
If you follow these 5 steps, you’ll be well on your way to being a successful real estate investor, which is a great feat in it’s own. But this is just the beginning for you!
As a successful real estate investor, you have the ability to change the world for the better. You’ll have the time, and as much passive income as you are willing to build to design a lifestyle you deserve.
So what will you do with this freedom? This freedom is the ultimate goal. The freedom to whatever in this life you want. This freedom should feed into your reasons why.
If you don’t quit, you can never fail.