@Nicole Pettis,
This is an opinion from someone who is probably of a similar age as your father-in-law. So, it may seem a little old-fashion, but it still may offer some considerations. At the end of my post, I will offer only one idea for overcoming your financial challenges. In reality, the options are limitless. Borrowing money is not the only option. Anyone who says it is does not fully understand the opportunities.
To me, real estate goes beyond what most people typically contemplate. The real estate business can offer you the ability to be a contributor to society and enhance individual lives.
Without having sat through the conversation you had with your father-in-law, it is impossible to fully understand what was said, intended, or implied.
Your father-in-law may have been correct when suggesting you may go bankrupt or put your family in a challenging financial situation. Here is why I would make such a statement.
Being the best prepared and informed will help to make your real estate ventures easier and more profitable. It can also help you to have an enduring successful future.
How much general business education do you have?
How much real estate business education do you have? If you have only read books, you may want to seek more education. I recommend having enough education to Ace the real estate license test in the state where you plan to do business.
How much law education do you have - both business and real estate law? Some securities law is not a bad idea either.
How much finance education do you have?
It is also a good idea to gain education on tax law. This will come in handy no matter what you do. This education will help you keep more money that you earn. You can plan your future with this valuable education.
If you do not have the education and full grasp of the complexity of the real estate business, you are taking on a huge risk. The risk may go beyond financial. You may have arguments with your spouse regarding the time commitment, the calls from tenants (if you are renting properties), and the list could be long. Of course, money is a major factor, commitment, and consideration.
- End each day a little smarter than you began.
Read the book “Rich Dad Poor Dad”. This may be helpful with your understanding of the real estate business and some of the opportunities offered. One thing the real estate business can offer the well prepared is better lifetime financial security and financial opportunities - including flexibility. Real estate can offer far more than your father-in-law ever imagined. He may enjoy reading the book as well. This will help him to understand your position.
Education Sources
- Small Business Administration (SBA) - Not just for loans
- This is a taxpayer-funded organization just waiting to give you guidance and education. The website is loaded with great articles to help you broaden your business fundamentals and skills, including creating a business plan. The organization also conducts seminars and extended classes in local areas. Some, in association with local colleges.
- Some banks and other local businesses conduct monthly seminars that are very economical to free.
- School districts sometime offer seminars on a variety of subjects.
- Real estate trade schools offer many great courses.
- Many local colleges offer continuing education courses.
Be Paid While You Learn
A great way to be paid while you learn is to work for a seasoned investor who has a long and successful history of real estate investing, especially in the area(s) that interest you the most. You will learn the fundamentals, lessons learned from mistakes, what has better results, tricks, shortcuts, and you would learn tips and better methods than taught in most books or in audio recordings.
Added benefit for you, you will be surrounded by like-mined people who understand your passion. You will gain the daily support from people who were once in a similar position.
- Some day, you too may become someone's mentor and enhance their life. An added benefit of the real estate business.
Funding Option
After having worked for a seasoned investor a period of time, ask the investor to be your partner in your first several investments. This could allow you to become an owner without much or any money out of your pocket. You will also continue your education.
Education is critical to easier and enduring success.
I am of the opinion your father-in-law is wise. He is looking out for your best interest. He may not be trying to discourage you from flying and seeking your own success. He may be just giving words of caution. Consider his thoughts and apply them to your life. He is sharing lessons learned that you have yet to be aware of or experience.
His words and intent should alter your life. If nothing else, take pause to consider the wisdom and intent. It may not exactly fit your goals. Every person is unique with unique goals. However, if you allow it, you can learn from every person to make your life easier and less challenging. Evolve from the wisdom of others.
May your future be full of success and happiness. Do what you are passionate about and you will never work another day in your life.
