If you didn’t get the memo, don’t worry. We have you covered. Most young Real Estate Investors are “gung – ho” and do anything and everything to get that “first” or next deal. Mind you, there is nothing wrong in going after that deal.
The challenge becomes when the property becomes the goal instead of the numbers; instead of the terms; and instead of good market analysis. So, what is a young investor to do? So, here’s your memo:
Secret #1 – GET EDUCATED
A fellow-investor and one of my mentors, once, told me, “knowledge without action is futile; but action without knowledge is fatal.” I couldn’t agree more. The one flaw of young investors is to attempt to get that first deal without being properly educated.
For example, there was an investor couple that purchased a vacant home. It was an older home and from the street, it looked rough. When my partner and I walked inside, it was even worse. There was a second floor in this ranch style home and the flooring was thin enough to see it bow from the first floor. When we sat down to discuss the numbers with the investor, something in my partner and my heads began to ring (and no, it wasn’t the town clock’s chimes).
My partner and i discussed the deal after we left the property and we both concluded the same thing: there is not enough in the deal to cover the repairs let alone the closing costs. In the end, this young investors walked away from the home.
Without the proper education, mistakes like the one I just outlined will occur. It causes disillusion to the young investor and may damage the reputation of investors, in general.
Be sure you are properly educated, so your deals create value and wealth.
Oh, one more thing…. education is not a goal; it’s a pursuit. Keep pursuing education, because laws change; strategies change; markets change; therefore, we have to change how we approach investing. Thus, we must get educated.
Secret #2 – GET A COMMUNITY
While education is important, finding a community is critical. What do I mean by community? Find a location of like-minded Real Estate Investors with some that are well-seasoned. Why? So, when you find a deal and you have filtered it through your education, you can take the deal to a mentor. This mentor can be another check and balance over your deal before you make you final decision. They come with experience that can prevent you from making a serious error. They can point out where your education pointed you in the right direction and also point out certain surprises which few could anticipate.
A community supports the old adage, “there are two ways to learn: one from doing it your way, paying for that experience or learning from the mistakes of others which they paid for.” I prefer learning from others. It saves me my time and… my money!
Oh, by the way… a community can multiply your efforts. How many properties can you view at one time? Stupid question, I know. But answer the question again from a community standpoint: How many properties can you view with a community? The answer is infinite, because within a community we can have people looking for homes all the time, creating a stream of opportunities for investing.
Secret #3 – GET RECREATING
Too often, young investors (and for that matter, young entrepreneurs) believe if they are resting or not seeking a deal 24/7, they will lose their next deal. Well, they are correct about one thing – they will lose and it will be more than their next deal. They may lose their friendships; their health; and even their family.
Recreation is critical. It changes our focus from our passion to something that stretches us in different ways. And very often when we are able to focus on something different or use other skills we have, it creates new ways to view our challenges in Real Estate Investing.
For example, you probably have never lost something. Yeah, right. So, what do you do? You embark on a search and destroy mission through the house; the car; the laundry basket, etc. At your wits end, you give up the search and you watch your favorite show as a sedative from the pain of losing your favorite “whatever.”
Then, as if someone turned the light on in the deep recesses of your brain, you realize where you left item you thought you lost. Yahoo for you, right?
The same is true with your passion to become a seasoned Real Estate Investor. When you get stuck on a challenge, don’t give up; don’t give in; but do something different. Take a break, take a walk; play a game. You’d be surprised how a quick game could provide insight into the challenge you are facing and provide a solid solution.
So, there you have it. Three secrets for young investors: Get Educated; Get a Community; and Get Recreating
But you might be asking, “Is there anywhere I can get all three of these?” “Can I find a community near me?”
The answer to these questions is a simple “Yes, there is.”
We have the education, we have the community; and we even have the recreation. Now you have the memo… why not share it with someone…
Question: What secret is missing from this article? Email me Alberto@epicincome.biz.
My next article will reveal an overlooked niche in real estate investing the super rich are tapping into, and how any first time investor can start building real wealth in real time.
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