Thinking of starting OR starting over in real estate investing?
If you have found your way to this blog then you must follow me or Ryan in some way, thank you! We started our real estate journey in 2015 and love the challenge of flipping homes and helping anyone we can in the process.
When I first started dating Ryan, he was fixing up his own house and it seemed like a natural fit to continue fixing houses. We have now done multiple flips, some semi flops, purchased rentals, and LEARNED what we will never do again!
If I was starting over in real estate investing tomorrow, here are three things I would do:
1. Give myself more credit and have self-confidence. This business is HARD and there is so much to learn. Ryan has caught me at meetups pretending like I did not already know what someone was telling me as to not hurt their feelings, and that is just a conversation where no one is getting anywhere or gaining anything.
If you are just getting started, read, go to as many meetups as you can fit into your schedule, and listen to all the podcasts in the car or cleaning your house. Become as knowledgeable as you can and leverage other’s knowledge, you can always learn, but don’t downgrade yourself to make others feel better.
2. Act like I can’t do things. This seems like I am flip flopping from above but I mean, outsource. Sure, Ryan can flip an entire house himself… and has, but that is the wrong way to do this and we know it.
Network to build your team. Even if you can fix something or post for your blog real quick (taking applications for future posters), do not. Sure, you can fix your rental’s toilet for free but you could also pay $100 to a plumber and not drive a hour there and back taking up hours from your day and not making any money in the process. Know that your time is better spent focusing on lead generation than anything else. Before you write a blog or fix a toilet, think, will this help my business grow and is this generating leads?
3. Take time before going all in. Unless you’re already a 10Xer, take your time before going all in. When you are full time it helps you grow because you have to, but it also means that you 100% rely on your business for not only your business to grow, but to live. Your profits from your first flip… are not your profits, they are your business’s profits and need to go back to the business or that flame will die out.
Having another source of income to help support your hungry face is a good thing, people should be able to eat, and not lose sleep over where they will get their next meal, or if they have enough gas to make it anywhere tomorrow. You should absolutely treat your business like it is your livelihood otherwise it will be a hobby and never grow, BUT set up some foundations like rental income before going all in. You can take your profits and buy rentals, sell a rental to buy MORE rentals, or possibly invest in your own next project… but I have my own reasons to not do that either.
This isn’t everything I would do differently now, but it is everything I tell a new investor that has not done their first deal. Real Estate is limitless, exciting, and a great way to invest. Give yourself some realistic goals and then go kill them.