Wanted to put together a quick list of a few things I wish I had known (and worked through more fully) before I started investing in real estate.
Taking action is SO important, but even just a little more planning would have helped my investing business grow more quickly (and profitably)
What is something you wish you had known before you started investing? For me:
1. More Construction Knowledge
I was a licensed real estate agent before I started investing and had essentially ZERO construction background (I helped a family friend build a house one summer in high school but that was about it). I definitely needed more experience with the overall construction process and help to manage job sites effectively.
2. More Accounting/Tax Knowledge
Another thing I neglected to spend very much time on when I started investing... I was literally making notes on my phone to track expenses on my first flip! Definitely not how things should have been done. Putting together an accounting and bookkeeping plan would have been massively helpful.
3. Understanding City Building Codes
This kind of tags along with construction but I didn't know ANYTHING about the city permits/inspection process. Definitely permits I should have pulled/inspections that should have happened but didn't. Another thing that does is it helps you find out which of your subs are doing things right and who are cutting corners. Don't try and skirt the system, in the end it has ALWAYS cost me more time, money, and frustration than doing it right the first time.
4. Building A More Complete Team
I tried to do literally everything myself on my first few projects. Looking back this was a massive mistake. Finding and empowering people to do their particular jobs well is an absolute must in the real estate game. Hire or partner to bring in the right people; again totally worthwhile and will save you SO much stress and headache.
5. Build Out A Growth Plan (and stick to it)
I get asked all the time by folks what their first real estate investment should be. My response now is always "what do you want real estate to do for you?". If you don't know where you're going any train will get you there. I've definitely waisted time and money by pursuing potentially profitable deals, but they are outside my scope of expertise and ended up only being distractions in the end.
These items may just be applicable to me and the skillset I had going into real estate, but hopefully they'll help out a newbie coming up to avoid a few costly mistakes.
I wish I had found BP before I bought my first property. The wealth of knowledge on here would have saved me time and money. I just didn't know what I didn't know.
As I commented in one of your other posts, it's definitely the accounting/financial/tax side of things. I have a decent handle on the construction and building codes side of things. But I just have to figure out how to deal with the money.
Also building my team. Up till now I have always worked directly for someone else, so having people work with me is something I'll have to experience and work out the kinks as I go.
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