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How to Minimize Personal Risk in Real Estate Investing
Similar to keeping one’s emotions out of the equation, minimizing personal risk also has a lot to do with how you interact with a particular client. Sure, there is an asset protection side of minimizing your personal risk but that is the subject for another day. What I’m referring to here is the tendency for many new investors to try so hard to accommodate a distressed client that they end up compromising their own business in the process. Examples of how this could happen include:
- Accepting less than ideal rents or deposits from tenants or buyers.
- Agreeing to a higher purchase price to accommodate a client’s needs.
- Agreeing to give a client funds to move or get back on their feet.
- Agreeing to refinance a property to get a slightly better interest rate.
- Agreeing to accept existing tenants from a motivated landlord and having to evict them yourself
I could go on and on and you might say to yourself ‘Why would I ever do these things?’ The answer is that there is no reason but yet it happens with some frequency all the same. How, you ask? It’s called emotion and it can happen in the so-called heat of battle. When a desperate seller’s situation and a strong desire to create a deal come together, sometimes that can lead you to bad decisions and these you most definitely want to avoid.
Key Point: Every time you write a check you are at risk.
My best suggestion is to approach each and every deal you do as if you have zero money or credit and therefore had to structure the deal accordingly to make it work. This forces you to think creatively and as a result, minimize personal risk.
Let me repeat myself in case you are not paying attention here because this is very important to the life, growth, and longevity of your business. APPROACH EVERY DEAL AS IF YOU HAVE ZERO MONEY OR CREDIT. Even though I gave you this great advice, I know that many of you will use your money and credit anyway. If you still don’t know how to invest in real estate without using your money or credit then go to www.freemakemoneygift.com/Invitation.html and discover how.
There’s nothing wrong with being compassionate and wanting to help someone out. Real estate investors on a regular basis exhibit compassion and most make good money in the process. Where it becomes a challenge is when your benevolence affects your business decisions. Don’t let the client’s problems become your problems. Business is business, you didn’t put a client in a bad situation, and it isn’t up to you to bail them out. There’s simply too much at stake to take on the burden of a client, especially when it impacts your business’s bottom line.
As I wrap up on investor skill sets, I hope you see a little bit of the philosophy behind how I look at this business. I don’t believe you have to do all of this yourself. I don’t believe you must have the best market knowledge to be successful. What I do believe is that the most successful investors out there are able to absorb the information presented to them, determine from it what they need to make quick decisions, and rely upon their team and resource network to help confirm the validity of every transaction they pursue.
Beyond the basic elements of making streamlined, yet informed decisions, successful real estate investing is about effective communication. How you communicate the basic merit of your business, the solutions you come up with, and the mutual benefit of the outcomes from your efforts is absolutely critical to your success. It is natural that you may not feel you possess all of the skills I’ve discussed last couple weeks. If so, then they should become a part of your educational process and goals for you to strive to achieve. Each and every one of you has the potential to be a great investor. Sometimes, all it takes is knowing where you need to focus your efforts and I hope my experience and sharing has been helpful in doing just that.
Exit Strategies and Professionalism
Ability to Understand Exit Strategies
There’s an old adage that you make your money when you purchase real estate. That said, when do you actually get paid on most transactions? Sure, it’s when you sell, and that points to mastery of exit strategies, as a fundamental skill required for all real estate investors.
The good thing is that there are only so many exit strategies you have to choose from, making your decision process easier. The down side is that this is sometimes still a tough decision you have to make and one that trips up many novice investors. I’ve often thought that the best way to determine the quality of a deal is to look at how many different exit strategies will work. The more strategies that work with your numbers, the better the deal.
While I’m not going to go into all the details of each way to exit a deal, I will say that your income does tie directly into how well you decide among them. Your profits depend on this and the best advice I have is to make your decisions expeditiously and with absolute conviction. A decision made quickly is not necessarily done in haste; rather, it is efficient and shows the confidence you have in your own decision-making power.
Having conviction in your decisions builds confidence. Sure, you may look back later and realize that an alternate choice of exit might have been better for a particular deal, but the one you did choose made money for you, right? OK then, stick by what you decided and add the results to your mental database so you can consider different options the next time around. This approach will give you confidence and be impressive to your peers and clients.
Ability to Remain Unemotional About Business
The old adage ‘its just business’ is the foundation for this valuable investor skill. In short, you must be able to separate business from your emotional side to be operating at peak efficiency.
There are several reasons why emotion can creep into the business of real estate investing, some of which include:
Real estate is a people business and people have emotions.
People often have emotional ties to their home.
Transactions involve money and people tend to get funny about money.
Some deals involve stressful or emotionally charged situations in a client’s life.
Recognition of where the emotion can come from is one thing. It is another to rise above it and choose not to let your emotions get in the way of good business. I know, easier said than done, right? This is likely a skill that many investors will need to work on more so than others but it is worth the effort. You don’t have to be so unemotional that people see you as a lifeless drone and please don’t confuse lack of emotion with lack of personality. Your personality should be on full display but the onus is on you to not let your emotions dictate your decisions.
If you remember anything from this section, remember this, fall in love with the numbers and not the house.
Keeping your emotions out of the picture is more in reference to not letting a client’s emotional state affect how you do business, or the proposal you make to them. It means not taking business issues personally. It means stepping back if you feel yourself getting emotionally wrapped up in a business setting and regrouping. These kinds of things will help you avoid bad situations and will also add an air of professionalism to how you conduct yourself.
If you are ready to learn more about various exit strategies and how to maintain your professionalism, then you must take a look at this incredible FREE gift. Go to:
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How to Analyze Deal Potential
Real estate is a people business but will ultimately always come down to the numbers. For the new investor, and especially one who doesn’t think much of their math skills, this can be a daunting proposition. I remember thinking this way a long time ago and, for every investor, overcoming this obstacle is both essential and unique in how you get the job done. For some, simple repetition and doing numbers time and time again is what helps the process sink in. For others, use of simple formulas for different situations is a path to success in number crunching. However you see this part of the business playing out for you, make the commitment to get comfortable with running numbers because your business depends on it.
All that said, I have a few tips and suggestions that I think will help you become more comfortable with this part of the business. First, don’t over-complicate it. Too many investors crunch numbers with the perpetual fear that they are missing something important. Remember my discussion on “paralysis of analysis?” If this is holding you back, estimate costs conservatively and evaluate deals under ‘worst case scenario’ conditions. That way, you’ll feel more comfortable with what you come up with and you’ll be able to proceed more confidently. Another way to feel more confident with number crunching is to realize that you only need to run a crude set of numbers before making offers on properties. You have plenty of due diligence time after a contract is signed to check your calculations and make adjustments as necessary so don’t feel like you have to be right on the mark from Day One.
Additionally, only go after the low hanging fruit. For example, if you went to pick an apple to eat from a tree you wouldn’t climb the tree and pick the apple at the top. Rather, you would pick the apple closest to your reach. Same thing holds true for real estate deals. I would much rather you weed through a hundred non-deals to find the good deal rather than trying to stretch a non-deal into a deal. Being willing to walk away is just as important as being able to take action. Lastly, always set yourself up to make good money with bad numbers. Murphy lives everywhere, and if something bad can happen it very likely will happen. This is not a big deal, just prepare for it in the beginning.
If you attempt a deal where the numbers must align perfectly then this is a deal you should walk away from. Always have a comfortable cushion so that you can make good money with bad numbers. Don’t stress my friends, you’ll develop these skills as you continue to learn and grow, and remember that your ability to do this will produce more profitability for your operation.
If you are curious, yes I do have a standard formula I use to determine offers I make on a property. To learn more about that, you can accept my Free gift to you and gather all kinds of smart investing strategies.
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Skills of the Real Estate Investor: Creativity and Negotiation
Creativity
Creativity in real estate is one of those unsung skills that can easily and effectively set you apart from your competition. Note that I’m not referring to creativity in the artistic or ‘left brain vs. right brain’ sense. Creativity in real estate means being willing, able, and committed to out of the box thinking, and bringing that philosophy to every aspect of your business. There are several primary areas of your business where this will benefit you.
First, you have marketing. Marketing is one of the easiest arenas in which you can express yourself creatively and it doesn’t just mean having the most unique appearance to your marketing message or media. It just means having a nice diversified approach to marketing your business and, by doing so, going the extra mile that your competition will not. Second, you have the actual approach to working with clients. Creativity here may mean nothing more than just being a good person and presenting yourself in a way your clients will not be accustomed to. Anything that sets you apart from other investors can be a form of creative expression, and such things will benefit you.
You want to have command of the fundamentals of real estate investing so you objectively are seen as competent. Beyond the basics, a creative or otherwise unique approach to your business will help to demonstrate that you aren’t afraid to march to the beat of your own drum and be comfortable doing so. Peers and clients alike will respect what makes you unique.
Ability to Negotiate
Negotiation is another one of the fundamental skills that all successful real estate investors possess. Why is it so important? The better question might be to ask why would it not be important? Negotiation is involved in establishing a professional team, interacting with clients, and getting your deals tied up and completed. It is an essential part of the business and, whether you educate yourself or get trained in it, or simply learn by getting out there and working deals, this is definitely something you need to work on because none of us are born negotiators.
My important fundamentals of negotiation that you should strive to command are:
- Educate yourself as to what all parties are trying to achieve.
- Ask good questions.
- Listen to what the other party has to say.
- Understand the needs of the other party.
- Have the courage to ask for what you want.
- Don’t always accept no for an answer.
- Be prepared to deal with opposition or objections to what you present.
- Learn to ask the same thing in different ways, multiple times.
- Be able to confidently justify your requests.
- Don’t make decisions based on desperation, impatience, or emotion.
- Be prepared to give if you receive, and vice versa.
- Have the wisdom to know when to walk away.
Focusing on these key areas does not have to be a monumental task. Just be committed to the fundamentals outlined above and remember that most anything is negotiable. Never just take things for granted and presume you have no opportunity to negotiate because few things are truly like that, either in life or in business. A mentor of mine said it best, “what comes out of your mouth goes into your bank account.” The worst thing that people can say to a request you make is no, and if that happens simply ask for something else, or ask it in a different way.
If you take away anything from this
article on negotiation let it be this,
you will never get what you don’t ask for.
Your commitment to being a good negotiator will be apparent to your clients and to your peers. Your goal is not necessarily to be seen as shrewd, but rather as someone who is always open to discussion and willing to find that ideal outcome that benefits everyone involved. This commitment becomes a part of your business philosophy.
I have experienced many success and some failures when utilizing my negotiation skills. However, I am a firm believer in learning form other’s mistakes. That’s why I put together an incredible gift for you to avoid costly real estate investing mistakes. Check it out:
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The Skill Sets of a Real Estate Investor
It’s no surprise that certain skills will benefit you as an investor. That said, it does beg the question, ‘What are the skills necessary to be a successful real estate investor?’ You may have your own ideas on this and I have mine as well. Some of what I present will seem logical and some of it might also surprise you. The idea here is to both confirm some things you may already be aware of as well as enlighten you to additional skills to help you succeed.
For starters, let’s list what I see as the most common skills a real estate investor would need to have to be most successful. I’ll then elaborate on each in time so you see exactly where I’m coming from and why I think these things are important to your accomplishments. Investor skills include (in no particular order of importance):
- Ability to make decisions quickly (take action)
- Creativity
- Ability to negotiate
- Ability to explain complex processes in a clear and understandable fashion
- Ability to eyeball the physical characteristics of a property and use that to determine improvement costs
- Ability to analyze the potential for a particular real estate deal
- Ability to understand exit strategies
- Ability to keep one’s emotions out of a business decision
- Ability to minimize personal risk
- Ability to always do business with integrity (add paragraph about this)
Before I get into the details of these specific skills, I want to point out (as you may have already noticed from the list above) that I did not include things like detailed market knowledge or being handy as essential investor skills. Many investors falsely presume they need to have such skills to be successful in this business and I just don’t agree with that. The skills I just mentioned are useful but also those that can be delegated to your professional team and thus not critical for your success. With that said, let’s look more closely at the skills I do see as more important.
Ability to Make Decisions Quickly
Quick decision-making and the ability to take action is one of the hallmark skills of a successful real estate investor. Note I’m not suggesting in any way that decisions be rash or careless. What I’m referring to instead is the efficiency and timeliness in which decisions get made. The more knowledgeable you are, coupled with ever increasing levels of experience, the easier it will become to make quick decisions. There are several reasons why this is such a valuable skill.
First, quick decision making puts you in line to capitalize on those great deals that you are exposed to in the course of running your business. Slow decisions and too much analysis lead to great deals being lost and I don’t want to see this happen to you. Too many real estate investors, especially beginners get what is called “paralysis of analysis.” They get stuck analyzing the numbers over and over, and the neighborhood, and the situation, etc only to find out that they’ve analyzed themselves right out of the deal usually before they’ve even made an offer or gotten a property under contract. This is not the way successful investors do business. If this sounds like you then break this habit immediately. Get a property under contract and then do your due diligence, not the other way around.
Then after you’ve done all your due diligence ask yourself, “What’s the worst that can happen?” If you can correct the worst from happening before you close on a property then do it. If you can’t, but still want to proceed, just make sure that your decision won’t keep you awake at night. If it won’t then you should probably do the deal. If it will, then you should probably walk away. Keep in mind that the goal of this discussion is about being efficient with your decisions. It will only happen a couple of times before you really start seeing the value of this skill. Remember, I’m primarily talking about making offers here. You can make a quick decision and still have time for due diligence so don’t think of this as opening you up to greater risk because that isn’t the case.
Second, quick decisions give you valuable experience in thinking on the fly and getting into the habit of acting and responding as if your income depended on it. This will not only benefit your business, but also give you valuable confidence that you can keep up with the pros out there and that you are more than just a newbie. Most people get a feeling about something and then analyze this feeling and then act. I’ve trained my mind to do the opposite. I prefer to make a decision and then deal with the feelings and repercussions of my actions after the fact. Have I made mistakes based on this method of thinking? Absolutely. However my successes have always greatly outweighed my mistakes, and therefore I have no doubt that this learned skill has greatly attributed to the achievements of my business. Lastly, one of the greatest benefits of quick decision-making is the boost it will give to your authority. Clients and peers alike will respect your ability to think and act quickly and will establish you as a force to be reckoned with.
Story Time – “My First Mentor in the Business”
When my retail coffee shop business failed, I knew that I needed to pick a direction to go from there. My choices were, (1) pursue the passion that I had acquired for real estate from my books, or (2) go find a 9 to 5. Well, since I wasn’t married, didn’t have children, didn’t have money, I decided that I didn’t have much to lose, so you guessed it, I went after my passion for real estate investing.
Upon doing some networking in my area, it turned out that one of my business relationship friends knew someone who was active in real estate investing. The problem was, he lived in Louisville, KY and I lived in Lexington, KY. I asked my friend to introduce me to this guy. Little did the investor guy know at the time, that I was a man on a mission and I was going to work for him whether he liked it or not.
With time, I professionally pursued the new relationship and became an “apprentice” if you will, to this investor. It really was a win-win relationship. I would drive an hour to Louisville every day to work for this guy, willing to do whatever it took to give me more knowledge about the business. Overall it was about a six month period where I wasn’t making a penny, but I was getting an invaluable education about how to make money as a real estate investor.
Eventually, the time came where I was either going to move to Louisville and work for this guy full time, or stay in Lexington and start my own real estate investing business based on the knowledge that I had acquired. At the time, it was the scariest thing that I ever did, but I decided to make a go of it on my own. I was extremely fortunate to have been able to experience the business from someone already in it. This mentor, mentee relationship was invaluable to helping me gain confidence and get started as a real estate investor. I wouldn’t wish for it any other way.
This method of learning was so beneficial to me in my early days that I have made it a personal commitment of mine to reciprocate and give back to other aspiring real estate investors looking to achieve great success in this business.
You must constantly invest in your education as a real estate investor if you want to achieve great success and longevity.
That said, businesses also don’t succeed on pure drive and determination, although it could be argued that these things are ultimately what helps keep businesses afloat through growing pains and other challenges. In short, your vision and courage are most admirable but they aren’t a substitute for properly educating yourself on the nuances of your business. In this case, you still need to be able to understand the numbers, prepare paperwork, evaluate market conditions, interact with people, negotiate effectively, and ultimately determine the profitability of the real estate deals you pursue.
The adage ‘Do your homework’ has multiple applications in the world of real estate investing. Sure, it can refer to proper evaluation of deals, adequate due diligence, or even timely reliance upon your professional team. I’ll discuss these things in future articles. In the here and the now, the idea of doing your homework also means getting yourself properly educated in the business and, if you haven’t done enough to this point, there’s never been a better time than now. Now, make a commitment to education and treat this part of the process just like you would any other aspect of your business and success will soon be at your doorstep.
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The Education of the Real Estate Investor - Final Comments
Personal Coaching/Mentoring
One of the single most valuable pieces of education you can get as an investor is to work one-on-one with someone who is more experienced than you. Someone who has been there, done that. This can often be arranged for a fee. However, do not expect this to be inexpensive, remember, you are paying for someone’s time and years of experience. Either way, you can get the following benefits:
- Education from someone who has had both successes and failures
- Education in a one on one environment
- A chance to voice your own goals and interests
- A way to get all of your questions answered
- A way to learn at your own pace
Naturally, a coach or a mentor needs to be qualified to give you the most benefit so you need to choose carefully. The confidence that a coach or mentor gives you can be tremendous, because as you grow your business, you have a sort of partner (at least in mind or spirit) who can guide you through your early development. Some seminar programs offer these types of mentors and others can be found through networking locally. I highly recommend this tool and have met many successful investors who have benefited from it so please take my advice to heart, because this one piece of advice could potentially shorten your learning curve and enhance your initial chances for success as a real estate investor better than any other training tool available.
Experience (aka the School of Hard Knocks)
Some investors adamantly argue that this form of education is second to none but I don’t think it’s a prerequisite to quickly becoming your local real estate investing guru. I’ll be the first to admit that experience is a necessary part of an investor’s so-called curriculum. After all, what good is the rest of an educational package if it is not put to use in the real world? Experience based education is certainly valuable in its own right and can be a mixture of both good and bad experiences such as the following:
- Facing litigation
- Having to go to court to evict a tenant
- Having tenants trash a property before they move out
- Losing an escrow deposit
- Taking a loss on a property that ended up being a money pit
I could go on and on and I think you get the idea here. Experience can make us wise to what happens down the road and, in the absence of some background education, can also be quite painful and expensive. Experience can and should be considered a beneficial supplement to some other forms of training, the type of training that can help you avoid certain key pitfalls in the first place. Using a well-rounded mix of education is perhaps the most valuable thing you can do and it perhaps will keep you from blindly accepting what comes your way as ‘just a part of the learning process.’
Experience is something that all investors gain over time and I’ve always found it helpful to gain from the experiences of others before embarking on something new myself. Teachers who are willing to share both their knowledge and their past experiences (good and bad) are abundant in the world of real estate so why not take advantage of this before having to experience all the ups and downs yourself like you were the first person who ever tried it. Take my word for it; there is no substitute for experience in this business. You just don’t have to experience all the possible mistakes and poor decisions yourself to learn from them. We’ve all made mistakes and we’ve all made bad decisions, and anyone who has been in this business for a while, as I have will certainly attest to that. Learn from this, learn from the experiences of others, and your own educational journey will be a smoother path to success in real estate investing.
The bottom line is this. Education is not just a hot topic for the news media and for politicians. It is an essential part of being successful in any kind of business. Just to remind you, you don’t need a traditional education (be it a business degree, MBA, etc.) to be a success in this business. Numerous studies have shown that traditional education, despite what benefits it offers and value it may have, is anything but a solid indicator of future financial success.
I am dedicated to helping others learn real estate investing. You just can’t beat working one on one with someone who can take you through a deal step by step, guiding and assisting you the whole way. That type of learning is invaluable and will be an investment for ALL your future deals. If you would like to learn more about my mentoring groups, please go to:
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Huge opportunities await you!
The Education of the Real Estate Investor - Continued
Attending Meetings at a Local REIA
One of the easiest and most cost effective ways to educate yourself as a real estate investor is to attend local meetings with groups organized just for you. REIAs (Real Estate Investor Associations) are very popular, are widespread, and can provide valuable information to you at a reasonable cost. The low cost and convenience of REIAs are two clear upsides. The downside is that the organizers dictate the topics that are presented and who does the presenting. You have little control over what you learn and when because you’re not making that call. My suggestion is to use this as a component of your educational process and, especially if you want to get on the fast track to success, this should only be one of the many areas of learning for you.
Membership in a REIA gives you credibility, and not just from the education you will receive. You’ll also have the wonderful opportunity to network with other investors and get your name circulating around. These investor peers are people you may likely do business with in the foreseeable future. Wouldn’t it be nice if they were already familiar with you?
Seminars
It seems like the real estate seminar concept has been just beaten to death at times but be that as it may, it is still an educational outlet that produces countless successful investors each and every year. There must be something to it, beyond the cynics who claim it is ‘gimmicky’ or a good way to part otherwise decent people from their hard earned money.
I’ve been around this business long enough to be at least familiar with most of the top seminar speakers out there and I’ve compiled a brief checklist of things to consider when evaluating seminars as an educational option. First, expect to pay more for seminar education. It will be more expensive than other types of education so be aware of that up front and don’t be one of those investors who expects something for nothing and walks away grumbling about the cost of the education, citing it as some sort of rip off. Yes, some programs are better than others but they will educate you and will usually do so in a shorter time frame than many of the other options you have.
Second, look for a company that has some diversity of training programs. Many seminar speakers like to hone in on the hot topic of the day (e.g. auctions) and fail to educate their attendees on some of the more basic fundamentals. Last, be ready to learn. Adults learn more slowly than young adults and need more repetition for things to stick. Therefore the learning process can be tiring, especially if you still have a traditional job. Real estate doesn’t have to be a full-time venture at first but, if seminars are your choice of education, be ready to spend some time at the training events and be ready to do what they tell you to do.
In almost all cases where seminar attendees are dissatisfied with the education they received, it comes down to whether or not they did what they were taught to do. When and if you decide to invest your money in seminars, boot camps, books, tapes, CD’s, DVD’s, etc. always keep in mind that you are paying a premium for this information because it is information that could make you a lot of money. However, it will always be up to you to take the information you invested in and put it into action. Your investment in this information is worth nothing unless you act on it. Therefore, if you really don’t have the time for this intensive style of education, that’s fine. Choose something that fits your schedule and be OK with learning and growing your business more methodically. That’s perfectly fine and especially if that’s what best fits your current obligations and lifestyle.
Seminars are often comprehensive, giving you a crash course or ‘boot camp’ of sorts for real estate investing, and thereby accelerating your educational progress and quickly preparing you in the lingo you need to be familiar with. An investor attending a comprehensive seminar may pay more up front for their education but it is usually highly focused and gives them the ability to almost instantly go out and start working the business like someone with more real time experience. For the passionate beginner who wants to learn and learn fast, this may be a great way to go to both get educated and, by doing so, give you more confidence to immediately go out and start making things happen.
Seminars also put you in contact with a variety of potential peers that have goals similar to you. Take advantage of this by exchanging business cards and making contacts for future reference and support.
Coming next, my personal favorite, mentoring and coaching. So, be sure to check out that post in a couple days. In the meantime, consider accepting this Free gift from me to you. Go here: www.freemakemoneygift.com/Invitation.html
The Education of a Real Estate Investor
What do you think of when you hear the word education? Do you think of the fundamentals, like the ABC’s? Do images of the hallowed halls of your alma mater come to mind? What about practical education? Did you need a certain degree or even certification for your current profession? Any or all of these things are reasonable interpretations of what it means to be educated in today’s society. That said, how does education apply to real estate?
Real estate investing, for as valuable commodity as the product is, is a profession that doesn’t require a degree to get started. Sure, policy makers when it comes to real estate interest rates and such have a finance background. Sure, some of your team members have a solid educational background (CPA’s and attorneys come to mind) but most were not trained in real estate specific areas. What about realtors and mortgage brokers? Basically, it works like this. You take a training course over a few weekends, pass a test, and you can be licensed to either broker real estate or issue mortgages. Not exactly the pinnacle of educational scrutiny, now is it?
Don’t get me wrong here. I’m not scoffing at the training certifications for these professions because you, as a real estate investor, need even less formal education to do what you do. There is no requisite certificate or degree that stipulates you are able to invest in real estate. All you need is the desire, right? Oh, I wish it were just that simple. If you think about it, part of the animosity faced by real estate investors from other professionals in the field may be due to just that. We’re out there making offers, working deals (at least if we’re doing what we’re supposed to) without any sort of training. From the standpoint of the critics, it’s just a step shy of real estate anarchy! I of course don’t see it that way and yet I find it useful to see things from an alternative perspective from time to time.
Although informal and absent professional credentials or certificates, education for the professional real estate investor is available and can take any number of forms. Many investors to their credit and benefit take advantage of several of the education options available to them. Some of the most common forms of real estate investor education include:
- Books and/or audio materials
- Attending meetings at a local Real Estate Investor Association (REIA)
- Seminars
- Personal coaching/mentoring
- Experience (aka the School of Hard Knocks)
Let’s take a moment to explore books/audio material. In posts to follow, we will go through each of the forms I listed previously. Again, while no one educational outlet can ever promise to deliver everything you need to be successful, every little bit helps and can help build your arsenal of knowledge.
Books and/or Audio Materials
Never underestimate the power of a good read. I heard someone say that once and I have no doubt there is truth to the statement. As an investor, however, you must look at books (or their audio equivalents) as resources, rather than your primary source of education. Just to rehash, books can provide you with the following: Basic real estate knowledge, inspiration, a financial vocabulary, an overview of real estate techniques and examples of how to interact with clients.
The list could be longer but my point here is that books are a basic type of resource, giving you so-called ‘literacy’ in your craft. They may also be your source of inspiration. Perhaps it was a book that first gave you the idea to become a real estate investor and, if so, that’s great, because for me it was a book that originally sparked my intrigue with this business. What books do not and cannot give you however, are real world experience and they should never be a substitute for going out, interacting with other investors, building a professional team, and simply working the business.
I’ve seen many an investor who had an impressive real estate “library”, full of books, home study courses, and even audio and video materials. Sure, it looks impressive, but the real validation of a real estate investor comes from actually doing deals. I’m in no way discouraging you from acquiring reading materials, as these will all help you educate yourself in some way and build the confidence in your ability to step out of your comfort zone to succeed.
What you want to avoid is the tendency to keep acquiring more books, looking for that proverbial ‘golden nugget,’ when your fear of taking action is what is actually holding you back. This may not apply to you, but if it does, take a more rounded approach to your education, get out there and start physically working the business, and it will be easier to cross that hurdle into success.
And while I’m on the subject of good books that may trigger your go button, I have one you should consider. Check it out here:
www.freemakemoneygift.com/Invitation.html
On, Wednesday I’ll continue to outline resources for educating yourself as a real estate investor.
How Do You Feel About Your Investing Potential?
Do you ever feel like you are working too hard for your living… not getting ahead fast enough? Perhaps everything you are doing as an aspiring or established real estate investor feels like 1 step forward and 2 steps back.
Do you ever feel like you’re missing something and that something must be slipping through the cracks and keeping you from reaching your full potential? Chances are, this missing element may be basic real estate knowledge. If you’re like me, you weren’t born a real estate investor. Perhaps you just started this business recently. Whatever your particular situation, there are some tricks of the trade that will help you move faster along that proverbial learning curve to reach greater levels of success. If you could learn to be more efficient at tapping into your own potential and, in doing so, become more successful, how many additional doors of opportunity do you think may begin to swing open in your business and in your life?
If you would love to find a single, all-under-one-roof, one-stop-shop source of legitimate, tested, proven, yet original, innovative, even radical strategies for becoming the real estate investing guru in your local market, then this cutting edge information is for you.
If you’re reading this article today then you are probably someone who has an interest in becoming a real estate investor or growing your already existing real estate investing business, and for that I congratulate you.
If you’re ready for NEW opportunity, you’ve definitely found yourself in the right place at the right time. If you’re ready for that supercharge and creative experience that’ll get your real estate entrepreneurial juices flowing like never before, then you’re going to be THRILLED that you got this book!
If you’re frustrated with being a ‘victim’ of the real estate investing industry’s smoke and mirror secrets that other trainers don’t share with you about what it really takes to become successful in this business, then Do NOT blame yourself because it isn’t your fault. I promise to show you that you can learn the secrets to the real estate magician’s tricks, which will allow you to BECOME YOUR LOCAL REAL ESTATE INVESTING GURU!
You should be motivated like never before in your life by the epic real estate investing opportunities lying right in front of you every single day. If you are already an established real estate investor then perhaps this book will entice you to reinvent your real estate investing business 100% for the better. Ultimately, my motive is simply this…I want to help you. It really is this simple. I am passionate about getting this message out all across the country, and I hope you will somehow “sense” my sincerity and love for real estate investing within this book and be motivated by the information to take your dreams to the next level. I know from personal experience that you will “see the light” about the business of real estate, and be richer, safer, smarter, and happier as a result of this new knowledge that I’m offering you here.
You’ll learn how to turn an ordinary business into an extraordinary business. How-to immunize and insulate yourself in a down market. How-to dramatically increasing your income, how to instantly decrease your stress, and how to make your real estate business your slave rather than your master.
If you would love to join the ELITE Real Estate Investors then you are about to tap into your inner genius to become smarter, more progressive, more aggressive and develop a true love for real estate investing, along with a new and sincere desire to get rich and richer (with no apologies for doing so). I will help you develop an optimistic, forward-looking attitude where I will share with you timely information (based on my real life experiences) about “what’s working today.”
If you would value discovering and connecting with a teacher, trainer, coach, author, and advisor who wasn’t invented yesterday on the internet, …who has actually built a solid real estate investing business from scratch, …who has a track record ….who routinely cashes large checks from real estate deals over and over and can prove it ….then you and
I are about to become fast friends.
Over the next few weeks, I’ll be sharing with you how to become your local real estate guru. I will share most of what got to where I am today, nothing held back. If you would like the additional tools it takes to get to that higher level of profitable real estate investing then you have to check this out: www.freemakemoneygift.com/Invitation.html
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