“What’s the one thing I can do today, such that by doing it everything else is easier or unnecessary?” – Gary Keller, The One Thing
Do you ever look back on a week or month and realize that you’ve spent countless hours researching and re-researching investing and haven’t gotten anywhere? I do.
After work, I’m tired but still feel the need to do something productive. I typically go straight to BiggerPockets to see what’s new and interesting. I’ll also get all of the newest books and listen to the newest podcasts.
But, at the end of the month I’m still in the same place, and, unfortunately, I’ve forgotten most of what I’ve learned. It’s the endless treadmill of recycled knowledge. A lot of investors jump on because they’re afraid of making mistakes or missing out.
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The Secret to Getting Off The Treadmill
Picture two friends on a backpacking trip for the first time. One of them throws on the pack tightens his shoes and starts following the signs for the trail. If a log gets in the way he jumps over it; if it’s a lake or a landslide he simply finds another way around. In the meantime the other friend is sitting at the car nursing a pile of books, first aid supplies, SOS survival manual, emergency shelter, GPS, satellite phone, personal locator beacon and snake bite kit. He refuses to start until he understands and prepares for every potential danger. Besides, you can get hurt backpacking. Who is going to make it to their goal? Who is actually going to learn more and be better at backpacking?
Most people think investing is about learning everything, finding perfect deals and not making mistakes. Not true. You might be surprised, but most of the successful real estate investors I work with actually don’t know a lot about investing. If you’ve read a book on real estate investing you’re ahead of half of them. What sets them apart is that 100% of them are action takers. They know where they want to get to and start taking the steps to get there. That’s it. They know that you can’t learn yourself into being a millionaire. Actions are all you have.
What sets them apart is that 100% of them are action takers.
They know where they want to get to and start taking the steps to get there. That’s it. They know that you can’t learn yourself into being a millionaire. Actions are all you have.
The only way to break the cycle is to know what your next step is and spend all of your time and resources working on that.
Creating Actionable Steps.
There are only three actionable steps in real estate investing:
- Find an investment that meets your needs,
- buy it and
- manage it for profit.
Below is a guide that will help you know where you are and what the next action should be.
What type of investment works best for you?
- Single family, multifamily or commercial?
- Flipping or buy and hold?
How will I get financing for the investment?
- Investment loan
- Owner occupied loan
- Owner financed
- Private money
- Combination of the above loans
How will I manage the investment to generate income?
- Get great tenants?
- Get high rents?
- Sell and make a profit?
- What are the costs?
- What are the laws I need to know?
Once you know what you need to work on next, write it down! Put it on a sticky note on your computer. The next time you open your browser or go to look for a book or to read about investing you’ll be reminded of what you need to focus on to get you to where you want to be. Don’t get sidetracked.
“Life is really simple, but we insist on making it complicated.” -Confucius
Your dreams are waiting. What is your next step?