My Biggest Lessons From 3 Years as a Real Estate Investor

Real estate is hard. 

I've learned this from direct experience. There's really no book that I know of that prepares you for the ups and downs of real estate. Some things in life you just have to experience to truly know what it means. 

Although I've had my share of struggles, I wouldn't take back anything from the past couple of years. The lessons I've learned. The relationships I've developed. The mistakes I've made. They've all prepared me to take my business to the next level. 

With that being said, here are a couple of the most salient lessons I've learned over the years.

Develop Relationships. Now.

If I could go back in time, I would have made networking a top priority. When I started out, I thought I could learn everything from books. I thought that I could learn faster if I just put my head down and taught myself. Big mistake.

You see, when you start any new endeavor, there are things you don't even know you don't know. Hidden holes in your knowledge. These holes need to be filled as soon as possible.

By far the quickest way to fill these holes is by leaning on the experience of others. What's a good deal and what's a bad deal? How do you raise capital for deals? What are the key metrics to look at when trying to determine the next cycle in real estate? The right people with experience will steer you in the right direction. Just remember, always return the favor.

Deal Funding: Ask and You Shall Receive

You've come across a great deal. Or perhaps you are 100% sure a bullish cycle in real estate has begun and you can lay out the case beautifully. 

So what? 

I timed the bottom in real estate in Vegas perfectly. I'm not saying this to brag, but to show how timing isn't everything. Did I tell people about my idea? Yes. Did I try to raise capital? Of course. Did I raise as much capital as I should have based on how well I timed the bottom. Nope. 

If no one knows about you, your business is capped. Take marketing seriously. Create presentations laying out a logical case for your investment idea. Some people have this idea that people make decisions purely on emotion. This is not true. Trust that people can make intelligent, rational, and logical decisions if given the correct data.

Don't be afraid to ask for capital. You'd be surprised at how willing people are to give as long as you take the time to lay out a strong case. But if you don't take this aspect of your business seriously, capital will run out sooner than you think. Lay the foundation for capital raises before you need it. 

Know Everything About Your Market

Now I know it's impossible to know everything about a given market, but this should be your goal. Only then can you spot the opportunities that the market offers you. In this business, you need to act quick, and having a store of knowledge to fall back on helps you be nimble.

Most people look through the rear-view mirror when making investment decisions. You want to be the rare person who looks ahead. Where is the demand shifting to and why? What's happening with lending standards and why? How is population growth in your area and why? Ask the questions other investors won't ask and you will be far ahead of the game.

There's always something you can learn that will give you an edge. Make it a priority to learn everything you can so that you are perceived as an expert in your market.

Take Massive, Massive Action

Most of us have lofty goals but often have trouble hitting them. The problem? Lack of action. Too much thinking. 

Action is the one surefire way to accelerate your growth. Mistakes happen no matter what kind of mentors you have around you. Make sure the mistakes are small, and make sure you make them quick. Reflect on what why those mistakes occurred and move forward. That's really the only way.

Fortune favors those who continually put one foot in front of the other. People want to know exactly what to do. Should I network? Should I go out and raise capital? Should I research my market? Should I develop relationships with lenders? The answer is: do everything until you don't have time. Then start delegating. But until you reach that point, you are not taking enough action and you're likely stuck in the proverbial "analysis paralysis."

I'm Still Learning

Although this has been a wonderful ride, I am nowhere near where I want to be. There are so many flaws in my approach that I didn't know existed that I am working on rectifying. 

Here's one thing I realized though: the truly successful real estate investors are relentless. They have the same struggles we all have, but they get over it quicker. They work at a different speed and know how to leverage, whether it be money or time. Surround yourself with people with higher standards and it will change your perspective on things. 

I would love to hear some of the lessons you all have learned. We are all in the same boat and this is a never-ending journey. I hope you all enjoy the ride.