Passive real estate investing tips, become an entrepreneur

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One of the big motivators for becoming a real estate investor is to get out of the rat race.  Real estate investing can be an 80 hour a week job, or it can provide you with financial freedom and a lifestyle where you get to choose how, when, where, why.  The key is to become an entrepreneur.  Many think of an entrepreneur as just a business owner, but an entrepreneur is much more.  

An entrepreneur can be sipping on Mai Tais in a far off land while his/her business or better yet businesses are running themselves and increasing net worth and cash flow. 

How to Purchase Real Estate With No (or Low) Money!

One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.

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Here are some tips to become a passive investor and true entrepreneur

  1. Create a strategy and business plan – Every hour you spend on creating a strategy and business plan will save you 10 hours of wasted time trying to wing it. 
  2. Separate yourself from the daily processes – This is the tough one.  Many cannot grasp the idea of delegating anything.  They are do-it-yourselfers and trust no one.  Change that and go with the strategy “If I don’t have to do it, then delegate” and separate yourself from as many daily processes as you can.  Your business must run on it’s own.  That means hire property managers, project managers, assistants, contractors, attorneys, office managers, sales/agents, CEO, etc.
  3. Create systems and build teams – Document systems, improve systems and build teams to handle all the processes in these systems.  Then duplicate.
  4. Spend your time on continuous improvement, strategy, growth and high level decisions – These are the tasks that add value to your business but do not have to be done everyday to keep the business going.  Duplicate your teams and systems, always improve and be opportunistic and well as fend off threats.
  5. Lend your money – Financing is one of the biggest challenges for businesses and real estate investors today.  Find a trustworthy business with a successful track record and strong business plan and become a passive investor partner.  You can be an equity partner, joint venture, private money lender, hard money lender, angel investor, etc.

 Have you ever heard that only 4% of seminar and boot camp attendees actually do something?  That means 1 in 20 people at your weekend seminar will succeed.  Most people will say it is because they do not do anything.  While I agree with that, I think the reason they do not do anything is they are intimidated by the time it will take for them to build the business.  To overcome this: create a strategy, systems and a team that can separate you from daily processes.  Then focus on entrepreneurial activities.  Once you achieve this, get some hobbies, volunteer, give back and spend time with your family with all the free time you will have.  Happy Investing!

About Author

Ryan is the founder of Real Return Real Estate™ , a company focused on buying property at extreme discounts, selling and renting with cash flow.

3 Comments

  1. Thanks Dave,

    Most beginners wander around aimlessly putting in 5% of the effort needed for a certain strategy and try 10 different strategies. Spread to thin. It is best to pick a strategy, write it all up in a plan and write what it will take to achieve success and master the plan.

    -Ryan

  2. Your first point is what I think makes the difference between a successful investor and someone who is set to flail around. There is nothing more important than creating a plan for any business, and running an investment business stands the same.

    By the way, where did you find that 4% number for seminar attendees?

  3. I agree there must be mastery and planning but the greatest potential downfall of new investors is lack of quality education. The hype and over exaggeration surrounding real estate investing has become so load that it drowns out all hope of hearing the truth.

    To master one must be given the opportunity to see the true potential of an investment. I receive many calls usually they fall into two categories
    1) Where can I buy properties through tax sales for pennies on the dollar-
    It rarely happens in Florida. You can’t obtain a single tax certificate and own the property due to a multitude of reasons. I.E. All other certificates must be redeemed by you, by Statute 1/2 of assessed value must be posted with Clerk if property is homestead exempt and tax deed conveyed to you, etc,etc.

    Tax certificates are for investors seeking interest, bidding starts at 18% and goes down expect to invest 2% of property value. Tax deeds are for investors seeking property ownership
    expect to invest 40% of property value + holding for 4 years or cost of quiet title + carrying costs such as hoa dues/taxes/special assessments and any liens not covered by auction overage.

    2)from individuals wanting to unload property and or contracts. I can perform a 20 year title search in most Florida counties within a few minutes and make smalltalk while doing so. I divulge my findings good or bad and have had people cry when informed that the property they purchased by quit claim has code enforcement liens which exceed value or there are numerous liens and judgments encumbering the property. Most, hearing the bad, will divulge that they recently completed the newest training or bought an ebook.

    I have seen many would-be new investors falter due to lack of motion but I have seen almost as many waste their dream due to lack of education or innacurate information.

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