5 Valuable Lessons Learned in Real Estate Investing
In the past 23 years, I’ve helped thousands of people become successful in real estate investing. Looking back over those years, there are several things that I would do differently to not only make me successful but also, ways to do it quicker. There are 5 valuable lessons that I’ve learned and want to share with you about real estate investing.
1. Take the fast track
Don’t try to reinvent the wheel! Find systems and people who have worked hard and copy them. Look at what they are doing, what their systems are, and what they are looking for, as well as what they are avoiding. Discover exactly how to win by exploring what makes sense for your investments and what doesn’t. There is so much noise out there! You want to make sure that you are watching the people who are doing great and ignore those who are just talking about doing good. Here are the top three things that you need to get on the fast track!
A valuable lesson that every fast-track investor needs to learn is how to find good properties. Find and look at as many good properties as you can.
The most important thing as a real estate investor is leverage and using other people’s money. Funding is available through banks, lenders, or individuals.
Put together a good team:
It is vital that you partner with good contractors, knowledgeable realtors, stagers, and property managers. By putting the whole team together, they can support you by knowing what you are looking for as well as what they can or can’t do.
2. Times VS Time
The question that all investors ask is, how long does it take to be successful? Success is heavily reliant on the number of times you practice evaluating properties, as well as exploring your lending options. The more you practice and look at properties, practice and comp out a property, and reach out to lenders, the more knowledgeable and confident you will become. It takes 100 times to walk through these steps before an investor becomes confident in the process. Some investors can achieve this in a week, while others may take 6 months to 6 years. Again, it’s not the amount of time it takes to be successful, it’s the number of times you practice.
3. Set your business up to win
You must set up your business correctly from the beginning. To do this, make sure that your business is properly set up with the state, has a bank account, and has an office location. Every correct step will ensure that the business is set up to win the leverage game. One of the most important steps in this process is selecting your business name. Avoid putting “real estate” directly in your name because it will impact your funding moving forward. Instead, you can use “management”, a name, or a group in order to make your business name unique. Once everything is established, find local banks that love to work with real estate investors. While national banks are great for unsecured lines of credit and credit cards, it is the local banks who will partner with you long term.
4. Create simple processes
Investors can easily become overwhelmed by all of the components that need to be considered before purchasing a property. By walking through the steps over and over again, it makes it easier to not only set up a simple process for yourself but then allows you to hand things over to others. Begin to find people who can support you and follow your established processes. You must ask yourself:
- How do I comp out a property?
- How do I walk through a property to see what needs to be fixed or repaired?
- How do I pick a contractor?
5. Scale with flexibility
To add volume to your investments, you must bring in more people. However, these individuals are not on the payroll. More importantly, their partnership and expertise can guide you on the fast track to success. From having real estate agents help comp out properties, to bringing in more wholesalers, this can help you win with flexibility with your scalability. As long as you have your systems established, there is no ceiling to your success.
6. Do whatever it takes
You must do whatever it takes to get you to where you want to be. Only you can determine what that means to you. Identify what you need to do upfront, and just do it! If you get into that mentality, you will be able to navigate the road to success within your market. The people who have the “do whatever it takes” attitude will not only win in this market but in every market thereafter!
Our goal is to make you successful! By following these 5 valuable lessons in real estate investing, you will be on the fast track to success! Watch our most recent video to find out more about these 5 valuable lessons.
Have more questions on how to get started with your business and how you can win in real estate investing? Call us today!