During the BiggerPockets Real Estate Summit I was honored to present on a topic that is near and dear to my heart.
My presentation topic was: Successful Investing while Working Full Time.
I had a real blast pulling the material together, reviewing it over and over again with my wife and finally presenting in a packed room of investors. It was both an honor and a highlight in my investing career to get 50 minutes with so many like minded investors. If you missed it, I am told you missed an “Intense” session.
I hadn’t intended to deliver an “Intense” session but I am very passionate about real estate, my business, and helping people so I apologize if I came off as anything but sincere and helpful. After reviewing the presentation and collecting feedback, I came up with the idea to document the 6 keys to successful investing while working full time.
I thought a low-key series of blog posts highlighting what I feel are the important aspects would be a nice complement to my intense presentation.
For those that attended the session you may remember my first key factor to get right before you start investing in real estate. I discussed this on several occasions throughout the presentation. In my opinion, the first key to successful real estate investing is:
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“Getting full and unquestioned support from your Significant other”.
Please note, I tell every new investor to go back and double or triple check this fact. The last thing you want is any gray area. If they say something like:
“Whatever you say, Honey”
“If you think that is best”
Or the kiss of death: “OK”
None of these or other similar answers are acceptable. You need your significant other “In the Boat with you!” All of these non commital and half hearted answers will blow up with the first negative surprise, and trust me you will have negative surprises.
You need your Significant other saying things like:
“I understand our 10-Year Plan”
“I understand this short-term sacrifice will pay off”
The best answer is: “What can I do to help?” or “I want to buy a few on my own.”
You need 100% unbreakable support for several reasons. First, as I mentioned before, negative surprises happen and can’t have the key person in your life throwing hand grenades at you. This business is hard enough without the extra stress.
The second reason is, by definition you will be sacrificing both time and money to pursue real estate investing. You will be spending evenings and weekends researching your market, talking to agents, and expanding your team. This is time that would normally be spent with family commitments and thus your support system will have to pick up extra work to fill the void caused by real estate commitments.
In addition to time, you will also be sacrificing money that may have been earmarked for retirement or maybe a nice vacation or a nicer car. This sacrifice is not always easy especially with growing families, and our common nature of trying to keep up with “The Jones”.
If you and your significant other can get focused on shopping for real estate deals like some of the folks shopping for cars, watches or handbags you will be ahead of the game. As you heard at the Real Estate Summit I would be nowhere close to where I am, if it wasn’t for the full and devoted support of my wife.
We had lots of negative surprises on our journey but I never questioned her commitment and the fact that we were in “The Boat Together” (Thanks, Honey!).
If you don’t have full support from your significant other, you will potentially sacrifice your relationship. I have seen families torn apart because only one member was truly committed to real estate. They either failed to check with their partner (shame on you) or they didn’t dig into the grey area (see examples above) or they didn’t care (in which case, they deserved the outcome).
My final thoughts on the subject is if one of you is not bought-in to Active Real Estate Investing you might want to start with Passive Real Estate Investing. This approach dramatically reduces the wild surprises assuming you vet the investor, the program, the downside risks and how both parties will make their money.
If you’re lucky, perhaps a few successful Passive Investments could lead to Active Investing once the other member has a better understanding of the business.
Worst case you are still participating in real estate during this once in a life time market.
Key #2 coming next week. Good Investing