Real Estate Investing Basics

The 4 Levels of Learning in Real Estate Investment

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
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In last week’s article I wrote about how important “Clarity” and being clear in your business is for your forward progress, lowered stress level, and the general success of your real estate investing business. It is with this in mind that we will uncover the 4 stages of learning anything below.

No matter how long you have been investing in real estate you will fall somewhere on this outline below. In fact while changing specialties or investing in other forms of real estate that you are not normally accustomed to you will find yourself repeating these levels to learn and grow within new real estate niches.

Level 1: Unconsciously Incompetent

During this level a person is just arriving and discovering the skill, job, or real estate niche they wish to master. It can be easy to be cocky or over confident in making assumptions during this first stage because “you truly don’t know what you don’t know.” You will have a general concept of the skill you are wishing to learn but you will have no idea how it is to be accomplished. During this stage it is so important to be around people you admire and want to be like. Real estate investing clubs, online websites like this one, and other real estate investment books are all great sources for you to begin understanding what questions you should be asking. The answers to these questions will often times spark more and more questions. Once you begin to see the depth of your incompetence in your desired field you will then start to move to the next stage.

Level 2: Consciously Incompetent

Once you know more and more of the questions to ask then you are becoming more consciously aware of how little you know. During this stage I have found an excitement to learn as much as I can as fast as I can. When you love something and see the possibility of your achievement you should have a fire burning inside you and a true thirst for knowledge. This stage of incompetence is a big learning and growing stage. Once you complete this stage you should have a small number of deals under your investing belt. You will not be the same person once you are leaving this stage compared to when you first arrived.

Level 3: Consciously Competent

After your first few deals you are starting to find your rhythm. Occasionally you may hear yourself speaking with sellers or buyers and surprising yourself with how or where you learned these sentences. During this stage you are able to successfully find, negotiate, and close deals however you will often times need to have a checklist handy to ensure you do not miss anything. While consciously competent in your skill or real estate niche remember there is still much to learn. Continue seeking out education and understanding of any questions or thoughts you do not understand.

Related: 4 Ways to Build a Strong Real Estate Investing Financial Education Today

Level 4: Unconsciously Competent

You have reached the final level of understanding in a particular skill or field. There can still be rough areas to polish to help systematize or streamline your success, however you have seen most situations and have practiced your skill for approximately 10,000 plus hours.

Confucius is quoted to say, “Real knowledge is to know the extent of one’s own ignorance”. So many times I help others that believe themselves to know more than they truly do. In my experience an attitude of humility is always better than one of expertise.

In conclusion life is not a race to the top of any one niche but a constant and ever growing understanding of real estate and all things educational. We should always be striving to live, grow, teach, and learn more.

Love what you do daily,

John Fedro

Investing since 2002, John started in real estate accidentally with a 4-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and some of the stories of other successful mobile home investors he helps on his blog and YouTube channeland has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest here and on other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

    Jody
    Replied over 5 years ago
    Another excellent article, John. It reminded me of the four stages of learning taught by some NLP trainers (which I’m definitely not, btw), and it holds the potential (I think) to provide a different and helpful perspective as well as a useful cognitive framework that’s a nice complement to all of the other content and conceptual learning needed with REI. Thanks again for this and your other blog posts!
    John Fedro
    Replied over 5 years ago
    Hi Jody, Thank you for commenting and your kind words. Yes, these 4 levels of learning were shown to me some time ago and really help explain what I have felt and seen in my own investing business and in those I help. I am glad you have gained value from this posting. All the best, John Fedro