The real estate game is all about the long game. It’s a process of learning … and often a rollercoaster of rapid growth, steady plateaus, dips, and rising back.
The key for investors is to always be pushing to the next level.
So … we’re talking about how to do just that.
We’re ready to talk getting started, getting out of ruts, and getting yourself to the next level of the real estate game.
In this episode of The Real Estate Guys™ show, hear from:
- Your level-headed host, Robert Helms
- His on-the-level co-host, Russell Gray
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A natural evolution in real estate
Where are you as a real estate investor?
Whether you’re just starting to think about it, getting started, or a seasoned professional ready to make a jump into a new niche … we’re here to help you get to your next level.
Not all investors are created equal. Not all investors start in the same place or end up in the same place … but there IS a natural progression and evolution as a real estate investor.
Part of that transformation is about knowledge and information. The other part is about actually changing.
If you remain who you’ve always been, you’re going to do things the way you’ve always done them, and you’ll get the same results.
What we’ve learned through observing many people at various stages of their development is that everything starts with your personal transformation … what you THINK and what you BELIEVE.
Pretty soon, that starts to manifest in the decision you make and the results you produce.
No matter where you’re at in your own evolution, there are several standard stages … and several standard ways to move to the next level.
Is real estate for you?
The first stage is when you’re not sure you want to be a real estate investor … but you think you might.
You’re exploring whether real estate is a possibility for you.
Most people do it part-time and are looking to get cash flow. But there’s a lot you have to learn.
The good news is that real estate is really relatively easy if you keep it simple. You accumulate properties over time and pay attention to details like cash flow.
You can compress time frames to accelerate the process. Part of that is developing a vision.
If you put strategy and effort into your real estate dealings, you can create more wealth faster.
Start by getting around people who are already doing what you would like to be doing and learning from them.
This principle applies to everyone. Find someone who is playing the game at a higher level than you and learn from them.
There are also lots of great books out there about getting started that can teach you the minute details of real estate deals.
All of this knowledge contributes to establishing what we call your personal investment philosophy.
Just like every investor is different, you want to set up your real estate investing process as something that supports who you are and your skill sets … not the other way around.
Buying your first property
After you’ve decided to take the leap into real estate, it’s time to buy a property.
Buying your first property is awesome and exciting … even when the property itself might not be that fabulous.
For you to qualify for loans on property, it really helps to have a dependable income … aka a good job.
That’s why so many beginners in real estate do it part-time. You might be ready financially to go and quit your job, but having an income and a credit score can help you.
A few years after buying your first property, you may be ready to buy a second … and a few years later you buy a third. Hopefully over time they produce income and go up in value.
Direction is more important than speed. Set your course and then get moving.
Remember … you’re working on your reputation as an investor, which is more than just your credit score.
Most people start off in single family homes … but you don’t have to.
Our good friend Brad Sumrok bought a 32 unit apartment building as his first investment. We know folks whose first investment was an agricultural property.
But still, most people invest in a townhouse or a condo or a single family home. It’s small, reasonable, and easy to understand.
Then the next part of the natural evolution happens … you look for a second or a different asset class within real estate.
Moving into different niches
So many people start investing in single family and then start to look at a multi-unit property like an apartment building and think … maybe I want to go into multifamily next.
Or maybe you want to focus in on another marketplace like retail or industrial.
Real estate is made up of so many different niches that behave differently depending on what is going on in the economy.
As you observe what is happening in the world around you, you can be strategic in catching where you think the wave of real estate demand is flowing.
As you move into a new niche, there is a little window of opportunity where a bunch of buyers run in and buy. They bid things up, and things slow down a bit.
You can learn to spot this window over time as you start paying attention.
Expanding into different niches lets you diversify and helps you build your experience resume.
And to get really juicy returns, most investors need to make the shift into these types of bigger markets.
Going full-time in real estate
When you reach the point that your passive portfolio can provide the income you need without working … it’s time to ask yourself if you want to go full-time into real estate.
When people see that their passive income from their real estate portfolio exceeds their full-time income, they usually want to retire.
But so many people find that they actually want to stay busy.
So, you use your real estate portfolio as a base … and you start reinvesting your own money.
You can also start sharing your expertise with other people and partnering with them. Or, you may take on private investors.
You may decide to invest your time and money into learning a whole new asset niche and developing your expertise there.
Something many people forget is that there is a particular tax benefit that comes along with being a full-time real estate professional.
You’ll want to talk to your tax professional about that, but it’s definitely a benefit of being full-time alongside setting your own schedule and being your own boss.
The point is that there is no one way to take your real estate experience to the next level … there are MANY ways!
And that’s what makes it exciting.
Learn more about getting to the next level with your real estate investments by listening in to the full episode.
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