What is one thing you wish you knew when you started in RE?

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What is one thing you wish you knew when you started in RE?

Kathy Calderini
Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes

Please share the one thing you that you wish you knew when you got started in Real Estate investing.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

Funny, my response is similar to @Greg Dickerson

I grew up just above the poverty level and most of my relatives had never owned a home. My family owned a home but it was a used double-wide. I bought my first house right before turning 30 and thought I had made it to the big leagues. I had a house and a paycheck so life was good. Five years later I read "Rich Dad, Poor Dad" and it opened my mind to greater things. I bought my first investment...and then quit because I thought I was already a Rockefeller!

It wasn't until a few years ago that I realized I had limited my potential. I didn't see myself as doing anything greater because I was already ahead of my family members and peers. I didn't care about being a "millionaire" or wearing fancy duds or driving a Tesla. I don't need $50,000 a month because I'm already living a good life.

But what I recently realized is that I have potential to use my abilities to benefit others. I can donate money to the pregnancy resource center to help women in a time of need. I can donate to help pay medical bills for kids. I can provide beds for poor children, backpacks full of schools supplies, or a water well for an African village.

I am building my investments in hopes of helping others. I wish I had thought about that 15 years ago.

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  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    7y

    That my potential and abiltiy to do large deals and raise capital is unlimited.

    6Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Funny, my response is similar to @Greg Dickerson

    I grew up just above the poverty level and most of my relatives had never owned a home. My family owned a home but it was a used double-wide. I bought my first house right before turning 30 and thought I had made it to the big leagues. I had a house and a paycheck so life was good. Five years later I read "Rich Dad, Poor Dad" and it opened my mind to greater things. I bought my first investment...and then quit because I thought I was already a Rockefeller!

    It wasn't until a few years ago that I realized I had limited my potential. I didn't see myself as doing anything greater because I was already ahead of my family members and peers. I didn't care about being a "millionaire" or wearing fancy duds or driving a Tesla. I don't need $50,000 a month because I'm already living a good life.

    But what I recently realized is that I have potential to use my abilities to benefit others. I can donate money to the pregnancy resource center to help women in a time of need. I can donate to help pay medical bills for kids. I can provide beds for poor children, backpacks full of schools supplies, or a water well for an African village.

    I am building my investments in hopes of helping others. I wish I had thought about that 15 years ago.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    21Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Nathan G. That is awesome!

    Thank you for sharing!

    1Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Greg Dickerson

    Thanks for sharing!

    0Reply
  • Trey Tatro
    Realtor · Washington, DC · Member since 2019 · 1 post · 1 vote
    7y

    @Nathan G. Great perspective!

    1Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Kathy Calderini

    Real estate is just like any other business. The most important thing I wish I knew is the Pareto Principle, that implies that 80% of the effects come from 20% of the causes. In order to understand that one needs to have an abundance mindset and think bigger than life in the first place. Most folks (including myself) are not born with such skills, but it can be developed overtime if you want to succeed. 

    Books like "Miracle morning", "Think and grow rich" and many others help one with such personal development. Oh yeah and a whole bunch of real estate books are helpful as well. 

    Happy to share my library if you'd like to read them.

    My best!

    4Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Alina Trigub

    Thank you!

    0Reply
  • Chris Coleman
    Rental Property Investor · Washington, DC · Member since 2015 · 429 posts · 393 votes
    7y

    Two things:

    1. The market is not going to crash tomorrow.  Well, then again, maybe it will crash tomorrow...or it may not.  It may actually crash next week, or maybe next month.  Or maybe it won't crash for another few years.  I guess I really don't know, do I?  No, and neither does anyone else.  The point is, it doesn't matter.  As long as I invest smart with careful due diligence, do not anxiously overpay to get into a deal, focus on cash-flow, do not over-leverage, keep adequate reserves, and overall follow my rules, then I will be okay.  The market and the overall economy does what it does, and I cannot control the market or economic environment.  But I can control how I manage my real estate investments.

    2. As so many others have said, go bigger faster.  I don't mean rush in hastily.  But I mean build the confidence and the vision to do bigger deals early on in the journey.  The fact is that every successful real estate investor starts from the beginning and must acquire the knowledge, learn the skills, and gain the experience to succeed in this business.  And most of the people who are doing $100M+ deals do not have any secret or extraordinary talents more than those who are doing $100K deals.  They just gained the knowledge, skills and experience necessary to do the bigger deals.

    6Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Chris Coleman

    Thank you for sharing!

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Kathy Calderini

    1. Investing long distance is way over hyped on BP and most people will not succeed in it

    2. No one can predict recessions and I wish we’d all stop trying to

    3. Get started as soon as possible. (I was 22)

    4Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Caleb Heimsoth thank you for sharing!

    0Reply
  • Account Closed
    New to Real Estate · Merced, CA · Member since 2019 · 10 posts · 3 votes
    7y

    @Nathan G. Awesome!! I’m still in the learning phase. This is some good advice

    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    7y

    @Kathy Calderini

    I started about 5 years ago. I wish I would have started earlier and leveraged more. I saved up money for years to buy my first two properties with cash (130k and 60k). My next five properties were bought with 15 year loans (20% down). I could have jumped in the game years earlier if I leveraged and took out loans. Maybe I’ve read too many Dave Ramsey books!

    3Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @John Morgan

    Thanks for sharing!

    0Reply
  • Bryan Lynch
    Member since 2018 · 13 posts · 2 votes
    7y

    @John Morgan are all your props in Texas ?

    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y
    Originally posted by @Nathan Gesner:

    Funny, my response is similar to @Greg Dickerson

    I grew up just above the poverty level and most of my relatives had never owned a home. My family owned a home but it was a used double-wide. I bought my first house right before turning 30 and thought I had made it to the big leagues. I had a house and a paycheck so life was good. Five years later I read "Rich Dad, Poor Dad" and it opened my mind to greater things. I bought my first investment...and then quit because I thought I was already a Rockefeller!

    It wasn't until a few years ago that I realized I had limited my potential. I didn't see myself as doing anything greater because I was already ahead of my family members and peers. I didn't care about being a "millionaire" or wearing fancy duds or driving a Tesla. I don't need $50,000 a month because I'm already living a good life.

    But what I recently realized is that I have potential to use my abilities to benefit others. I can donate money to the pregnancy resource center to help women in a time of need. I can donate to help pay medical bills for kids. I can provide beds for poor children, backpacks full of schools supplies, or a water well for an African village.

    I am building my investments in hopes of helping others. I wish I had thought about that 15 years ago.

    Very inspiring! I had a similar background in that I grew up in poverty . We rented a dumpy 2ned house outside of town  for 200$ a month that my grandfather graciously paid for . We were on food stamps drove a car that was 35 years old and would go to the Salvation Army drop off center at night and scrounge through the goods left outside the dumpster for stuff we could use  . We also would dump our garbage at local business after dark because we could not afford garbage collection . We were often “ caught” and would flee the area .I’d love to report that having a better life owning fancy cars giant hone and multiple apartment houses erased all that but the guilt and shame of being poor doesn’t ever go away. I can at least  report that The good news in America is you can literally start with nothing and become affluent  with the right knowledge and unreasonable unwillingness to give up ! We all have different start points in life but the end point is up to us . Knowing what I know now I would say it is almost scary how fast you can build a portfolio from nothing if you are determined and focus on your goals no matter what . I had limiting beliefs because this rate of achievement was inconceivable to me all my life due to the wrong mindset .it really is true With Gods help nothing is outside our reach 

    2Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    7y
    Originally posted by @Bryan Lynch:

    @John Morgan are all your props in Texas ?

    6 out of 7 are SFRs in the DFW area in Texas. My first is a STR in Branson, Missouri.

    1Reply
  • Matthew McNeil
    Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
    7y
    Originally posted by @Kathy Calderini:

    Please share the one thing you that you wish you knew when you got started in Real Estate investing.

    One thing I wish I knew when I started? Well, I knew nothing about REI when I started. I guess I wish I knew more about leverage back then.

    1Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Dennis M.

    Thank you for sharing!

    0Reply
  • Kathy Calderini
    OP
    Lender · Atlanta, GA · Member since 2019 · 58 posts · 31 votes
    7y

    @Matthew McNeil

    Thank you for sharing!

    0Reply
  • Dave Tad
    New to Real Estate · TX · Member since 2019 · 7 posts · 2 votes
    7y
    Originally posted by @John Morgan:

    @Kathy Calderini

    I started about 5 years ago. I wish I would have started earlier and leveraged more. I saved up money for years to buy my first two properties with cash (130k and 60k). My next five properties were bought with 15 year loans (20% down). I could have jumped in the game years earlier if I leveraged and took out loans. Maybe I’ve read too many Dave Ramsey books!

    The Dave Ramsay part cracked me up because that is where my gf's mental limit is at the moment and after I read a couple Robert K. books, I am not that afraid to be in (good) debt anymore.

    0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    7y
    Originally posted by @Dave Tad:
    Originally posted by @John Morgan:

    @Kathy Calderini

    I started about 5 years ago. I wish I would have started earlier and leveraged more. I saved up money for years to buy my first two properties with cash (130k and 60k). My next five properties were bought with 15 year loans (20% down). I could have jumped in the game years earlier if I leveraged and took out loans. Maybe I’ve read too many Dave Ramsey books!

    The Dave Ramsay part cracked me up because that is where my gf's mental limit is at the moment and after I read a couple Robert K. books, I am not that afraid to be in (good) debt anymore.

    Haha! My wife’s mentality was at the Dave Ramsey theory. She went nuts after I started buying properties with loans (good debt).  I would show her the numbers and she didn’t care  she would tell me over and over again how “people just don’t go and buy a bunch of properties with loans.” Now that our cash flow is 3k/month off our rentals after five years, she’s cooled down and finally on board with real estate investing.

    0Reply
  • Dave Tad
    New to Real Estate · TX · Member since 2019 · 7 posts · 2 votes
    7y
    Originally posted by @John Morgan:
    Originally posted by @Dave Tad:
    Originally posted by @John Morgan:

    @Kathy Calderini

    I started about 5 years ago. I wish I would have started earlier and leveraged more. I saved up money for years to buy my first two properties with cash (130k and 60k). My next five properties were bought with 15 year loans (20% down). I could have jumped in the game years earlier if I leveraged and took out loans. Maybe I’ve read too many Dave Ramsey books!

    The Dave Ramsay part cracked me up because that is where my gf's mental limit is at the moment and after I read a couple Robert K. books, I am not that afraid to be in (good) debt anymore.

    Haha! My wife’s mentality was at the Dave Ramsey theory. She went nuts after I started buying properties with loans (good debt).  I would show her the numbers and she didn’t care  she would tell me over and over again how “people just don’t go and buy a bunch of properties with loans.” Now that our cash flow is 3k/month off our rentals after five years, she’s cooled down and finally on board with real estate investing.

     Nice! I have a short term goal of 5 houses in 5 years but even now I think that is slow. You sound like a good mentor and I am not too far away (East of you)

    1Reply
  • Account Closed
    Rental Property Investor · Miami, FL · Member since 2014 · 80 posts · 55 votes
    7y

    @Kathy Calderini the one thing I wish I knew? It takes a lot more cash than you think. Even using good debt/leverage to scale up, you still need lots of cash.

    2Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    7y
    Originally posted by @Dave Tad:
    Originally posted by @John Morgan:
    Originally posted by @Dave Tad:
    Originally posted by @John Morgan:

    @Kathy Calderini

    I started about 5 years ago. I wish I would have started earlier and leveraged more. I saved up money for years to buy my first two properties with cash (130k and 60k). My next five properties were bought with 15 year loans (20% down). I could have jumped in the game years earlier if I leveraged and took out loans. Maybe I’ve read too many Dave Ramsey books!

    The Dave Ramsay part cracked me up because that is where my gf's mental limit is at the moment and after I read a couple Robert K. books, I am not that afraid to be in (good) debt anymore.

    Haha! My wife’s mentality was at the Dave Ramsey theory. She went nuts after I started buying properties with loans (good debt).  I would show her the numbers and she didn’t care  she would tell me over and over again how “people just don’t go and buy a bunch of properties with loans.” Now that our cash flow is 3k/month off our rentals after five years, she’s cooled down and finally on board with real estate investing.

     Nice! I have a short term goal of 5 houses in 5 years but even now I think that is slow. You sound like a good mentor and I am not too far away (East of you)

    That's a good goal. Mine is one SFR each year. My wife gave me the green light to make an offer on a property in Ft Worth tomorrow. She's loosened up a little finally. Haha! Where are your rentals at?

    1Reply
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