There are some you out that may have an interest in real estate, but don’t know where to start. And also some of you that may have a bad taste in your mouth because you currently or previously owned some real estate, and didn’t have the best experience. During my past two years, I have basically been in the “due diligence” phase of real estate while working with clients to help them with their finances, and these are a few things I picked up along the way.
So here are a couple reasons to consider doing real estate?
- It’s tangible: there is a physical piece of property that you can touch, feel, own, and have access to.
- If invested properly, it will provide predictable passive income that can be counted on to grow your wealth.
- 80% of millionaires built their wealth with real estate!
- True diversification: what I mean is, many people I meet with tell me that their portfolio is diversified, but when we take a look, everything they own is in paper assets (stock market) in one way or another. Robert Kyosaki explains his idea of diversification should consist of 3 asset classes: paper assets, real estate, and business.
Real estate provides an easy way for people to get some of their money out of the wall street casino (stock market as some people call it) and into a physical piece of property that can give more control over their money and provide passive income.
Why do some people seem to do well and others don’t with real estate?
There are definitely some do’s and don’ts that I wanted to share with you to make your entry into real estate enjoyable.
Learn: you can’t expect to buy the first property, have it be a complete success with no hick ups and master the game right out the gates, that would be nice, but unlikely. Two ways to learn that I think are critical. 1. Read a book on the topic, if you need recommendations, just let me know. 2. Find a mentor: not just anybody who owns a house or even owns a rental property. You need to find someone who is living the lifestyle that you dream of and has had lots of success in the real estate game. Trust me, if uncle Joe owns one or two small houses and rents them out from time to time, he’s probably not really enjoying being a landlord. Remember, I said there are some do’s and don’ts. But with that said, you can definitely learn from others mistakes, just don’t get discouraged when some of the feedback is telling you that real estate is not the way to go.
This is information directly received by me from my business and real estate coach with over 27 years of successful real estate experience. You ready for it?
He said, “Dan, if you want in the real estate world, you have to know the game.” Ok.. so how do I learn the game? Then he said, if you really want to be successful in real estate, you have to build a team around you to help and not try to know everything on your own. This is huge guys and gals, and this is also where many people will slip up and go on thinking they can read a book or two and do the rest all by themselves. If you want to be successful, build a team.
So what does that mean? Coach Bill then told me to pick up the phone and call all the professionals that are involved in the process of acquiring, managing, and owning real estate.
Pick up the phone and call the following and simply say, “I’m interested in becoming a real estate investor and I’m just curious, what is it that a _________________ does?”
Here is small list to get you started of people to call:
Investors that have been successful (mentor), title company, management company, bankers. Have a conversation with them over the phone, or meet up with them and buy them coffee, take notes, and enjoy the process of learning!