I'm an oil and gas analyst turned RE agent I'm writing a book and starting a vlog just on my FB to try and educate people on both mindset of being an investor and what one needs to do to be able to effectively start to invest both in them selves financially and mentally to succeed in RE investing. What topics do you think need more coverage and which do you think are overdone... Mostly I'm fishing for ideas for content to explore.
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Yea... I've seen much of this... people wanting to underwrite and invest in property without doing so to them selves prior... so... a good topic may be the order of operations i suppose, lol.
I think most new investors biggest struggle is trusting themselves and actually pulling the trigger. The study, they run the numbers, they talk to people, they know it's a deal and they still freeze up. I can't count how many deals I looked at, hesitated and watched sell without having the guts to make an offer.
Paul is dead on.
I would add covering:
- invest in what you know (i.e. if they don't work with or in an asset class they plan to invest in, then they should get educated in that investment space if they aren't already)
- the best ways to network with others who invest in said vehicle
- how to find a mentor or shadow other people's deals
@Denver Gray personally it's "subject to" transactions.
Real estate investing is no different than any other long-term endeavor. People struggle with setting priorities and maintaining commitment.
Paralysis via over analysis is a pretty classical issue and I'm sure we all missed a deal at one time or another because of it... Other than simply trusting myself more now that I have done a few deals... I guess the only surefire way of doing this would be to suggest riding the coat tails of a mentor and or giving another investor a helping hand and trying to swap sweat for knowledge and or equity while also potentially putting some blood on the registrar as well to prove commitment on the deal. My partner in my deals came in with sweat equity and I can't imagine doing deals without him now he's a massive add value to our team as I'm a numbers guy and he's a sales guy.
Mike do you think something as simple as a check list could help with that whole priority thing for most people to get out of their own way?
Andrew... I'm not sure what you mean
Spot on Dave and Paul... self trust is always an issue..
Does self-trust ever become not an issue... I could think overconfidence could be another potentially more problematic issue as well..?
Another big one I think is simply financial education... allot of people i have noticed seem to need to look inward before the focus outward... that whole "pay yourself" mentality is quiet rare among my peers from what i can tell.
I think the topic most people struggle with the most is basic financial literacy. Understanding that is the foundation to being able to analyze deals.
@Denver Gray - I would say talk strategy about getting UNcomfortable. Once you can be comfortable getting uncomfortable then analysis paralysis is not a factor. Trust your numbers. It doesn't matter if you get the BEST deal on the market with a 45% CoC.
If you can service your debt payments and hold on, you will be good in the long run. Taking action now is better than holding off x years and being afraid of not getting the best deal.
@Denver Gray , I like that you are writing about MINDSET. Earl Nightingale used to teach the insurance agents employed by his company that 90% is Mindset and only 10% is the SKILL. Of course, there is another 50% called ACTION! And, yes, I know the math doesn't work out, however, that's the truth about real estate investing!
Talking about having the right mindset, surrounding yourself with positive, supportive people, networking with people that know more than you and creating a team you can brainstorm with it's most important.
I would also write about the most overlooked way of buying real estate by most beginners: Build credit and use the banks for the lowest cost of money possible and also use leverage to buy your first property through house hacking! That first building you'll buy will teach you a lot of skills: Cost of remodeling, finding tenants, Property management, and especially how long these activities really take!
While taking care of your first 3-4 unit building, you can figure out if you like the remodeling part, managing tenants, you like cash flow, the tax benefits, etc, and it is much easier to move forward from there and choose a nitch!
Good luck with your book!
Seems like the bread winners are mindset, procrastination and financial intelligence. Which those are much more fun and light hearted topics than I would have imagined... but i guess you all bring up a good point a good portion of what your going to learn will happen along the way but the ability to look at a property in a simply financial way and pull the trigger seems to be where most people freeze up.
So i have sorta brainstormed a few topics what do you guys think i should take away or add... sorta just going to do a data dump
I have labeled topics 1-3 1= basic 2=intermediate 3= advanced
- 1-3 Property Management
- Absentee owners
- Short term investors and the opportunities the miss and the opportunities they make for others
- 1-3 Contractor's (bids)
- 1 Bootstrapping
- 1 The myth of real estate passive income
- 1 My secret to massive upside
- Long horizon, value add mentality, "72" Bootstrapping, force down NOI via capex, property efficiency and systems
- 1 Value Investor Mindset
- 2-3 Managing tax liability
- 1 Service and Hospitality (or business partners with commercial tenants)
- 1 Small improvements can lead to massive swings in NOI
- 1 Lower rent and lower vacancies are more important than the ego boost from high rent with medium vacancy
- 1 Strategy… why I prefer multifamily and other strategies
- 2 Cape rate and property class
- 2 NOI income and expense
- 1-3 Add Value properties and mindset
- 1 money is made when you buy… or lost
- 1-2 Buying your first deal series (couple episodes)
- 1 DRY POWDER (cash)
- 1 “72” (compounding interest basics)
- 1-2 Money is everywhere Mentality/ mindset episodes
- 1-2 Financial literacy/ intelligence (mini series)
- 1 Stop asking permission
- 1 Positivity (mindset)
- 1-2 CASHFLOW is KING!!!!!!
- 1-2 How to minimize risks
- Play the long game
- H+F+D*P=$ (hustle+focus+discipline*patience= 72
- 1 Underwriting the origins of my mindset and views of value
- 1 Closing the deal
- Working with the seller
- Selling yourself as a buyer
- 1 Order of operations… want to invest one day… first underwrite yourself
- 2 Rehabbing
- Commercial vs residential
- 2-3 Options
- 1-3 Data
These are the topics I seem to find myself talking to others about allot some are sorta followed by a brief thought or note.
Also I do do live streams on my Facebook and then I'll take notes from those streams to add to my writing so its sorta a round about writing process but hey it seem to work for me. So that's why it says episodes or mini series next to some of those topics I think will be more than one 30 minute video.
Anything on that list you think should be added or removed in your experiences?
Looking forward to seeing content, Denver! I invest outside NOLA and will search out your mini series.
Strange how no investors ever mention the fact that as investors in rental income properties you are obligated to know and understand your state landlord tenant regulations prior to investing in your first property. Regardless of whether you self manage or hire a PM as the owner you have legal obligations to know the law.
This is a major oversight that most new investors chose to ignore and will usually lead to tenant issues.
New investors also need to understand the importance of enforcing their lease and state regulations. Non enforcement will always lead to escalating landlord tenant issues. Landlords ignoring tenant non compliance of rules is one of the biggest factors leading to evictions.
My 2 cents ;
1) Mindset - You are either someone with a quantitative investment bent of mind or you are not.
2) People struggle with desire and drive. Even those who have the investor mindset may not have the drive to venture
3) Priorities - People have other priorities in life. Kids, jobs, careers, health, hobbies etc.
4) Lifestyle choice - I know 95% of my friends who have invested a huge part of their wealth in large plush opulent homes that has left limited bandwidth to invest elsewhere as they prefer to invest in the primary home either via improvements or paying additional mortgage!
5) Risk aversion - People see RE as an investment vehicle laden with risk. Let’s face it, REI is not a walk in the park. It is guaranteed to give you sleepless nights and grey hair from time to time
6) Peer Pressure - or lack therof. I know 6 years back I trailblazed into REI on my own and some of my friends followed after my success. Others thought I was a nut job.
7) Operational skills - You need to be ready and willing to be hands on with your properties. Do the dirty work etc. Not everyone is cut off
8) Ideology - Many people feel debt and leverage is bad! Well don’t blame them they were innocent victims of the last financial crisis.
Lawyer friend of mine seems pretty worried (he is very conservative and wary of risk expossure since his focus in insurance suits) about me writing about topics and talking about how i do proformas and analyze properties think about them in general and was trying to tell me i’m Putting my family at risk... How would i look into and figure out possible exposures to lawsuits and things of that nature for my writings and my live videos.
I honestly try at this point to just focus on my person experiances and continually reiterate most of what i do is just an educated guess and I’m always learning and always will be. I’ve always felt i learn just as much if not more from trying to show people how i look at things but now I’m worried a little but it seems like tons of other gurus or fiancé guys do similar things on social media and talk about simular topics in their books. Is there a reasource I should look to for how to stay out of trouble or am I over thinking this? I just really enjoy teaching people different ways they can choose to build wealth and would like to possibly grow what i do into potentially classes or consulting or somthing.
Just seems like allot of the gurus we all know don’t even think of this sorta thing or maybe the risk expossure is just part of the game? I’m just trying to make sure i go about this is the right way... obviously I’m trying to contribute and learn while helping others do the same but i would hate to think i unknowingly put my family at risk in some way or another.
Also you guys have been great so much more responses to my questions and thoughts than i thought i would get... this feed back is great so again thank you everyone.
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