Long term Success in Real Estate
Clyde, TX · Member since 2018 · 109 posts · 94 votes
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?
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.
@Quincy Lockett 😬 the last thing I need is “drama.” Thanks for the advice! There’s so many paths one can take in real estate investing. I’m personally leaning on the middleman wholesale, pass along and I’m out. Appreciate the share Quincy! Great advice.
Just remember-- real estate is like a roller coaster.. some months will be amazing, easy and very low stress.. and there will be times when you can't believe how disgusting and frustrating it is... stay on the ride, it will be worth it in the end!
Also, remember-- the heart of real estate is PEOPLE... it's about networking and relationships-- whether with tenants/contractors/attorneys/etc-- be enjoyable to work with and don't forget-- it's all about people!
A lot of great advice above.
But one I don't think I saw was...Utilize leverage! Real Estate is a finance driven business so you have to learn how to use it to the best of your ability whether it's private money, institutional capital, or a syndication. I was stuck for a long time thinking I could only use my own capital, but once I learned about OPM (Other People's Money) everything changed for me.
But even in a regular business it's not just capital (though that's a big part of it), it's also about properly leveraging your employees, your technology, and your time...just to name a few things.
What experience with Section 8 and c/d areas do you have to support your advice?
In my opinion Section 8 is the golden goose. Very very low turnover and the highest cash flow returns out there. I’m not saying you are wrong, just interested in your view. We agree about appreciation.
Note- I have 5 properties I have interest in and am halfway to financial freedom all thanks to hard work, a mindset to treat those less fortunate with respect and the dignity they deserve, and the government’s Section 8 program.
One last one numbers don't lie but people do...that's just me being humorous
Alex
I would invest in what you feel comfortable with. Ex: don't buy a warehouse if you like SFRs. If you like 2-4 units, don't look at 10. Staying within your initial comfort zone, in my opinion, will help insure long term success as you grow and learn
Yesterday I got a bunch of emails about SEO. Instead of answering them all individually, I rather just post it here...
So everyone gives the same answer when someone asks about SEO. "You get leads for free online"... "And these leads are high quality leads as these are people begging YOU to buy their house vs you begging THEM to sell their house with other forms of marketing.
BUT..
Let me give you the REAL power of SEO through an (evil and brutal ) example...
So first...
SEO stands for Seriously Evil Ostriches.
This is what Google unleashes on yo Butt when you don't take Search Engine Optimization seriously.
^_^
Jokes aside... It is such an unappreciated weapon people just ignore and it is beyond me why!
When you master SEO you are pretty much a God online. You control your business and more importantly you control other people's businesses. You sit on your throne and pass judgement who gets to live and who doesn't.
Let me give you a brutal example what power you actually have on others.
Long long long ago there was this awesome little monkey. He was minding his own business being awesome and helping fairies build him the best website in the galaxy. Ohh really important fact.. He was SUPER SEXY OMAGAAHH!!!
Then the evil butthole of the west saw how awesome his site was and decided to copy the copywriting, layout and my brilliant ideas.
The awesome little monkey said.. "ohh no you don't" !
So the overlord supreme of the Google SERPs (search results) decided to pass judgment!
The lil monkey checked which cities the evil butt of the west was doing deals in.. and did a google search to see where they ranked.
And yup,..
they ranked #1
You dare to copy me.. MEEE MEEEEEEE and think you will get away with it?
So what I did...
I checked to see which cities he invests in and I took them ALL!
EVERY single one of them.
How long do you think it took to overtake him?
ONE DAY!!
Why? How?
It is called google trust.
Google trust happens when you have proved to google you are sexy as hell. When google trusts you.. this happens...
Consider this...
The word "Xerox" is a brand name correct? It has become such a strong brand that now people use it as an actual word.
"I have to Xerox this document"= I need to photocopy this document.
So now when you type "Xerox" int google, Goole knows you actually mean Xerox the company and this happens..
This happens because Google KNOWS Xerox is a company.
Now similarly.. in my market... the keyword "We buy houses in connecticut" is the number 1 typed in keyword to find companies that offer services of buying houses for cash.
Well guess what happens when your company is now so sexy, and has google trust?
Yup, google now actually thinks that when someone types in that keyword, they are SPECIFICALLY looking for the company CALLED "We Buy Houses In Connecticut"..
And THAT company shows up.. like so:
But that is not all. See the circled "Mini links"? That increases Click through rate drastically... leaving competitors in the seh-MOKE!
You must be thinking.. DAMN this SEO stuff is interesting.. huh?
Well Not even close to be done here. Shut up sit down and FOCUS!!
Look what the first page of Google looks like for someone with godly SEO skills...
Everywhere there is a blue arrow.. is us!
We absolutely DOMINATE the first page of google.
Now for those that have NOT me in their market.. be happy.. but for those unfortunate souls that have to deal with an evil maniacal little monkey... life sucks! WHY?
Let me show you why pumpkin..
Think about it... how would YOU get leads if some butt monkey is hogging google?
PPC
Direct Mail Marketing..
right?
Well yup.. and here is where SEO REALLY works for me.
PPC:
Have you seen the sites that do PPC? Often they know NOTHING about SEO and let SEO companies take over... well SEO companies ONLY do SEO. they do nothing about your conversion tactics or credibility score.
So when users see their sites.. they SUCK. Seriously horrible sites.. and as I am #1 they obviously see my site and my site.. as mentioned before.. is the best site in the world (as faries made it).. they simply get more motivated to choose me because well duhh.. I am credible and awesome. (well so they think).
DDM:
For Direct mail marketing.. this is even MORE brutal. So a potential seller get a weird yellow mailer...
Margarette: "Hey George.. GEORGE.. GEOOORGE you old senile freak I am TALKING to you!"
George : " Good lord I m right next to you woman, what do you want you old hag!"
Margarette: "well you old prune, I just got a card here i the mail with this young man wanting to buy our house in cash, how odd"
George: "That can't be real Margarette.. WHO buys houses in cash.. just google it you will see I am right"
So dear ol Margarette googles:
We Buy Houses In Connecticut
Sell my house in connecticut
who buys houses in connecticut
cash for houses in connecticut
...
Guess who is on top of the list? And a NASA scientist no less helping old people walk again through robotics (CREDIBILITY)...
ME!
Don't believe me?
So not only aren't they getting any leads organically..
even DMM or PPC is giving ME most of their leads.. why?? SIMPLY because I am better at SEO thn them!
Tell me again.. what is the best form or marketing?
Yeah I didn't think so...
SEO IS KING!!
Do you understand why NO SEO company can beat anyone that does seo for their own website?
An SEO company has no chance with the dedication drive and obsession an individual will put into for their own company.
So I know this reply feels like a lot of bragging... but it is done purposely.
I can put ANYONE in y market out of business eventually by taking over their market... driving the to spend a fortune on marketing and in the process taking all their leads THEY paid for... All because of SEO.
SEO is more powerful than you can possibly IMAGINE.
And if you are as good at seo as I am.... you are dangerous! very dangerous. And I am such an evil butt douche. I am maniacal!
But all this means nothing without results... concrete results:
I keep telling people. Be a YODA in SEO
If you have no one like me in your market...
1) KNOW how lucky you are!!
2) Become that "ME" in your market BEFORE someone else does (or convinces me to help them become the local SEO Yoda), because..
IF you don't.. game over!
BUT BUT BUT.. I have to admit.. it is not all SEO goodness... being handsome beyond comprehension does help. Don't believe me?
Damn I am hot!
So my little grasshoppers... SEO is not everything...
WRITE THIS DOWN GAAADAMNIT
DEALS = SEO (PPC/DMM/D4D...) + CREDIBILITY
No one seems to get this... sheesh.
One without the other is useless!
Are you interested in packaging and selling your SEO formula ?
consulting, yes. I am not giving away these secrets no matter what anyone offers me. This knowledge is simply priceless to me not in monetary terms but more to keep competitors far far below me.
This is my valuable lesson I will pass on to everyone.
To be on top, is not by being the best!
At one point someone better than you WILL come along.
To be on top you have to be the ONLY one! You simply have to destroy your competitors and get them out of business, no matter how brutal this sounds.
They WILL have NO mercy for you when they are doing great and their success is killing you.
Selling my SEO strategies will only ensure others to gain on me because they then have the advantage. It took me a LOT of time and effort to perfect this. And selling it simply will cause them to take this knowledge and easily improve it and use it against me.
I however have no problem consulting and helping others rank one as long as I keep holding on to these secrets :)
Just a regular business account from Chase Bank with the direct deposit set up through your property management team, if that is what you use. Non of my properties are LLC.
Doesn’t have to be a business account, just a separate account away from your other personal accounts to keep it in order and to track it better.
Get your spouse on board and keep them on board. Constantly acknowledge their contributions. Do this both to them and within yourself. If you don't have a spouse, make sure s/he's on board before you get one. I believe this is more true for some forms of real estate investing than for others. What my wife and I do in real estate is DIY low-income landlording along with a series of live-in flips and renovations of distressed acquisitions with lots of deferred maintenance issues. We lean on each other in a million ways.
A sad part of Bigger Pockets is that there are quite a few self-promoters here with something to gain out of making you believe they're very special people. Add to that the standard outsized egos of entrepreneurs everywhere. This leads to a lot of "I, I, I" postings instead of what should be a more realistic and honest "us."
"Me, myself, and I" rarely make it in real estate. In my case, I can cheerfully tell you that those three dudes are habitual losers that are useless when it comes to money. And they are not at all alone. The overwhelming majority of those who succeed financially in the USA by building significant wealth from humble beginnings are married couples. I don't have the numbers for it but I think this is even more true in REI, again, especially the not-so-passive varieties of it.
@Jim K. interesting you mentioned “married couples”. My husband and I are in the business together. We nick-named ourselves the “house connection couple”. ☺️
Working together allows us to utilize our strengths. My strength is more people relations, creative ideas (all the pretty stuff) and his strengths are the fine details, organization and marketing.
I appreciate you sharing Jim! I agree. Together we can accomplish much.
@Roger Hefner got it! I’m on it. Thanks for the great advice. I’m one step ahead of ya there. 🙂 Appreciate it Roger.
@Miranda Simon Lots of great answers here. I want to add is that don't be afraid to pull a trigger on a deal, there's always some escape clause that you can use to exit a deal after you tie it up. Also during your real estate journey you will make some mistakes along the way, I know I've made many. The key thing is to always learn something from it. Keep on growing my friend!!
Start early and Believe in YOURSELF!
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?
@miranda Simon The next question for all these folks including me would be what is the one thing not to do. I really wanted to write a blog on what went wrong and why over the years in this business. Maybe one day. Yet please ask away.
Alex
All great advice from your one simple question, there is enough information here to churn out at least one book, Hint Hint BP Community...
Follow BP Forums and learn as much as you can but also get in the trenches and do it, this sometimes is the best education.
Today's market is super hot, everyone is chasing the same deals and driving the prices up, make sure you are getting access to opportunities that have not been shopped to the world. "Know the numbers" because they tell the story, "know the numbers", "know the numbers", oh did I say "know the numbers?"
There are deals in every market and your success is in the journey as just as much as it is in the destination. If you can remember this and believe in it when things get tough and they will get tough, you will do great!
Good luck
Kevin
Lots of great advice here! Working on my first property as well and it's overwhelming but exciting at the same time. Getting paid while you sleep....I love that!
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