When I first started investing in real estate back in 1998. I was in debt, had bad credit, very little resources, and worst of all I had bad habits and beliefs around money and investing.
My parents were both hard working general laborers swapping time for very little money. As a result off my childhood I thought it was best to save money by trying to do everything myself.
This philosophy cost me tens of thousands in fatal mistakes, years of my life that I will never get back, and millions in missed opportunities. If you take anything from this blog let it be this...
Do not make the same mistake that I made. If you are like I was and you think that you are saving money by doing it all yourself. Think again! You are stepping over dollars to save dimes.
Let's say you have $60,000 thousand in saving and in your area that will be enough to buy a "fixer upper" at a steal of a deal... $200,000! After your 20% down, closing costs, and a few "do it yourself" renovations, and material your Sixty thousand is gone.
You have an investment property but no reserve fund if anything goes wrong, no clue how to manage the property, no money or idea of how you will buy your next property and if you are lucky at best you break even and continue at your day job that you hate just to pay for all the mistakes that you made on your first investment.
You see you forgot about fire code, zoning, vacancy rate, maintenance, and worse yet you have bad tenants that do not pay because you did not properly screen them before they moved in and you again default back to thinking you can save money by managing the place yourself rather than hiring a professional manager because you believe management is too expensive and you do not value your time.
This is what most rookie investors first deal looks like. How much return on investment did you make? How much time did you lose? Do you give up on your dream of financial freedom and continue to go to your dead end day job?
How do you think I know this?...
Because this is what happened to me. This is what has happened to many others that have gone before you. Do not let this happen to you!
Ok, now let's take the that same $60,000 dollars but this time rather than buying one beat up property you invest it all in your education. You hire a coach, buy a few books, & join the local real estate group. After those three investments your 60K is gone and you own no real estate...
But wait it gets better :-)
After a year of self education you now know how to invest wisely, in good cash flow properties, in good areas, you know how to raise capital, do joint venture deals, you have a proven system that you can duplicate over and over again from now till the day you die...
And perhaps even more importantly you have the compounding effect of teaching the valuable, life changing skill to your family and friends.
You implement your new skill and buy 3 multifamily properties a year for the next 10 years. They all cash flow. They all go up a minimal 3% per year. Your great tenants pay down the mortgage. You buy back your freedom. You spend more time with family and friends. You live your desired life.
What is the return on that investment? Once you quickly get your first 60K back it is an infinite rate of return. But more importantly you have the freedom to live life on your terms and that is priceless...
Until next time always remember " The More You C.A.R.E. The Less You Work"
Your real estate-based wealth coach,
P.s Whenever you are ready here are a few ways I can help you earn more money, create more freedom, and scale your real estate business
1. Join the C.A.R.E. community and connect with other real estate investors that are taking massive action. It's our new Facebook community where smart real estate investors connect, learn, and grow! Grow your wealth, Freedom, Impact, & portfolio! CLICK HERE to join today.
2. Watch this FREE training video. In this video you will discover the 2 key areas you need to work on in order to create financial independence as a real estate investor. CLICK HERE NOW to watch this video.
3. Work with me and my team privately. If you would like me to help you avoid costly mistakes and grow your real state business so that you can have the finances and time to fund your desired life let's chat. CLICK HERE to grab a complimentary strategy session. This way we can chat and get to know each other better. This is not a sales call I do NOT work with everyone. I want to see if we are a good fit and help you. If you decide you want to continue to work with me and you meet my criteria we can explore what that may look like. Because I am actively running my real estate businesses and value my free time I only work privately with a small select few every year. BOOK YOUR SESSION HERE.