If there was one golden nugget; one tip, you could give that would aid in the long term success of a new real estate investor, what would it be?
I consider real estate like juggling. When you own a single personal residence it’s like you are throwing one ball between your two hands. Each property you buy, unit you own, or deal you are doing is like adding another ball.
It can become a nightmare trying to juggle 10 balls at once, but imagine if you could grow more hands, juggling would be a lot easier. Your team and your systems are the extra hands. Realtors, property managers, wholesalers, contractors, partners, etc.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
Don't stress over the little things, if you do this long enough. schedules will be delayed, extra costs will be incurred, hidden damage will be there, tenants will wreck somethings or be late in paying their rent, or disappear in the middle of the night, a deal will be lost. Expect it and enjoy the ride.
And never over extend yourself so that YOU are the one unable to pay your bills....because a schedule was delayed, a project had extra costs, there was hidden damage, the tenants wrecked the house and it can not be rented without repairs and downtime, the tenants are late on their rent or disappeared in the idle of the night.
Clyde, TX · Member since 2018 · 109 posts · 94 votes
7y
@Lynnette E. I know you said don’t stress over the little things and I think that’s great advice, but I confess...I started stressing out reading about what not to stress over (Yikes) I need help lol Thanks for sharing Lynnette
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
7y
Protect and build your cashflow. Nothing else really matters. Equity who cares, bragging rights who cares, even finance who cares. Make sure you get paid while you sleep and focus on increasing that all the time.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
there is no rush. I read so many folks worried that they are not getting this or that deal. so what? it is far better to retain (and save more) capital while waiting for a decent deal to come around than risk it all in a bad deal.
also ; markets change.. we are at the tail end of a long upswing and it is getting frothy.... maybe better to sit tight and see what shakes out for a while and be ready when it ticks over and deals are more palatable!
Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
7y
@Marianda Simon
Not just one thought but here was a quick version of a speaking engagement I did back in the day.Things that I thought if we learn them all it will help your business.
Knowing the NUMBERS
Educating yourself the business
NETWORKING!
Building power TEAMS
Mentors
Your WORD and why it is so IMPORTANT
Credit, Reserves & Credit line
GOALS / Roadmap / Accountability Partner
HEALTH!
HUSTLE!
Mission statement “Both Business & Life”
4 D’s In Life and Business and life
Market Cycles
Rush and Real Estate
Passion, Patience & Persistence
Passive Income
Stop and Enjoy LIFE!
@Will Gaston Good advice my man Lets catch up when your in town
@Joe Splitrock I had to laugh. I get the tenant thing is not your style unless they doing right. Thanks for sharing!
I love tenants. My point was it is less expensive to have a vacant property than a bad tenant, who can cause way more damage. New landlords are so afraid of vacancy that they often accept bad applicants. On the flip side if a tenant is not paying rent on time or doing damage, you are better to get them out quickly.
To Joe's point -- build VACANCY (and a reasonable amount) into your property evaluation. If you get the right tenant in quickly with no vacancy, then great -- money back in your pocket. If not, you've created a buffer for the vacancy until the right tenant comes along.
Realtor · New York, NY · Member since 2018 · 27 posts · 21 votes
7y
@Miranda Simon
Remove all emotions when buying real estate. From my house to my rental units I always get what I want by being fair and not naive or acting like I know it all. Know when to walk away of a deal is fishy, avoid all the so called real estate gurus. Do your homework, build a team of honest and hardworking people. Don’t stretch too thin. You got this lady! 😎
Fort Myers Beach, FL · Member since 2016 · 225 posts · 124 votes
7y
I have learned do not trust anyone's elses Proforma, do your own numbers and make sure you do not under estimate the 50% rules, my experience tends to show 50-60% expenses, but maybe I just suck at management. LoL.
Rental Property Investor · Bardstown, KY · Member since 2016 · 33 posts · 36 votes
7y
@Jimmy O'Connor outside of reading 1-3 books per week I regularly eat breakfast with brokers and take bankers out to lunch/ dinner often. Real estate is always talked about and you’d be surprised at what you learn just by sharing a meal with someone.
Investor · Surprise, AZ · Member since 2018 · 156 posts · 110 votes
7y
@Donte Brandon, SEO = Search Engine Optimization. Things like when a person searches for real estate, etc., on Google, your company/name will come up in searches first. Marketing essentially.
South Holland, IL · Member since 2017 · 374 posts · 432 votes
7y
@Miranda Simon
Only buy in areas with GOOD SCHOOL RATINGS! Or else your cash flow and/or appreciation will LIKELY be compromised. The worst position to be in is in a C/D class area that is dependent on the Section 8 program to get regular rent payments. Otherwise you STAY in Eviction court and rehabbing empty units.