I have worked with several investors that have been in the Real Estate Investing game for many years.
When I first started as a newbie, the one thing that was very obvious was they were all unique in their own way. I am not talking about their personalities or their looks, even though they were all an acquired taste.
But one thing that was very clear was that they all had their own “formula” to success. It took time to learn that each person had a method and all of them had holes in it.
Every investor lost money which was chalked up as a learning experience? I know that anything worth doing requires a risk, and the higher the risk, the higher the pay out!
But, I don’t like losing money! So I went on a mission for almost 8 months to watch and listen to all of my investors to see what they were doing and how they would analyse a property.
I would buy them coffee and have them show me how they do the numbers and what equations they would use.
This also helps me know if I’m wasting my time showing them the property. I would do the work for them so I would know if fit their criteria.
One real estate investor would ask the address and find the comparable price of the property before he decided if he wanted to look at it. If the numbers worked on paper, we would schedule a “showing” of the property.
He would walk through the property, look through all of the rooms, looking at the things that have made him lose money on a past investment.
He would look at the foundation, electrical, plumbing, etc. like he was looking for his misplaced wallet. I couldn’t understand what he was doing until I started looking at properties to invest in with my own money. He knew the front end numbers but had no true understanding of the entire picture.
Thanks to HGTV, everyone thinks that they can invest in Real Estate and a lot of people jump in with no idea what they are getting into!
Real Estate Investing Coaching
There are so many facets of Real Estate Investing and starting it on your own is like going surfing and don’t even know how to swim.
Some people just have the talent that it is second nature to them, they can make money with whatever they do. But most of them fall so many times that they get themselves to stand on the board anymore!
The first thing I have learned is that you need to build your “formula”, giving you a rule book to work from.
Playing baseball as a kid, I swung that baseball bat hundreds of times, caught that ball thousands of times, and I still kept missing the ball! It was when I got a coach is when I understood how to hold the bat, how to swing the bat, and how to “aim” my swing to where I want to hit the ball.
Then he taught me how to catch the ball with both hand so that the ball won’t roll out of the glove. I think I was thrown thousands of ground balls, I was so tired of ground ball before my coach decided to that he was comfortable that I would catch the ground balls.
Then every time the ball was hit to the outfield then you would throw it to 1st base, 2nd base, 3rd base, then home.
I always thought that was a waste of time until game time, it became so natural that you don’t think about it.
With a real estate investing you need to have a formula built so that when you are looking at an investment property you know what is acceptable or unacceptable to you.
The easy way to start your formula is to decide what type of real estate you want to invest in.
I love single family properties because of the many positive attributes of them.
Multifamily properties are a sought after by most investors because of many attributes that bring a very high monthly income but is a high risk for resale and market validity.
There are so many other different kinds of properties to consider investing in and it is your decision on where your passion lies.
You also decide what your geographical area of where you want to invest in so that you can learn the insider secrets of that area.
For example, in certain areas where I invest we always do sewer inspection because during a certain time period they installed an orange colored solvent soaked cardboard pipe that is caving in all over the city.
Know your areas and types of real estate in every way you can, it will save you thousands of dollars.
Deciding your budget that you want or more than likely can put into place to work with is very important as well. For some investors it’s about how many investment properties they want for the money they have to work with or the type of property you want to work with.
This subject is personal but is very important part of the formula process that needs to be hit head on.
This part will also bankrupt you in one property if you don’t understand your numbers and your limits.
Your mentor should help you understand the pros and cons of your budget and what the dangers of a budget that stretches you too far.
Be realistic with yourself knowing that if you stick with your budget it will make your rich because you will also know your limits.
Rental properties are a great residual income for your future! I love this aspect of investing if you understand the numbers and know short term and long term risks and rewards.
Every investors limits are different depending on their bank account and should also be because of their experience. If you do it right, knowing your numbers well enough that you build in that monthly profit every month, you will make a lot of money.
Some investors believe that the monthly income is all that matters but there is so many other numbers that need to be considered to make more money than you can see on the residual monthly figure.
Flipping a property is a quick way to make a lot of money if you know your numbers and your properties.
Have you seen a pattern here? Just like practicing for baseball and knowing how to swing a bat, you need to know your numbers so that you can make the most money possible.
It is important to understand that the property condition, neighbourhood, health of the neighbourhood which includes many different variables, year of the property, and style of the property.
In your area there may be other important points that need to be considered but these are the biggest.
Real Estate Investing Coaching – benefits
I want to recommend that you find a real estate investing coach that will teach you exactly how to build a formula. If you have a real estate investing coaching “program” that doesn’t assist you to build a formula that fits you then you are working with the wrong program.
Do I think that you can do it on your own? I think that you can do anything that you put your mind to.
You will get further faster with a mentor/ coach that is doing exactly what you will be doing every day.
They will teach you the insider secrets of how to invest in real estate that you can’t read in a book and find.
Most programs give you minimal time with a coach and overload you with information that is hard to decipher.
Find a real estate investing mentor that will help you where you come in at, whether you don’t have much money and have never invested before.
It is proven that our students are making money with Real Estate Sales LLC Coaching program.
Maybe you have a couple million dollars and have no idea how to invest it or maybe you have been investing for a few years and haven’t made much money? Find a mentor that will work with you exactly where you are.
The most important rule in building a formula is never change or build your formula while you have a prospect in sight. It is very dangerous to change or build your formula to fit your prospective property.
This will bankrupt you just because anyone can make numbers and rules work for your situation.
Build your formula and never, ever, stray from it because while you’re making decisions on emotions, it will keep you out of trouble.
This is very difficult when you have a prospect that emotionally sounds so good but when you set perimeters, it will keep you from making a decision you will regret.
More details at http://realestatesalesllc.com