- Know your “Why”:
It starts with knowing exactly why you want to get into real estate investing. It’s not a “get-rich-quick-scheme”. There will be frustrating moments that can get you floored if you don’t have a solid reason why
you are getting into it – tenants will leave unexpectedly, the proverbial toilet will leak, and everything that can go wrong may go wrong. But having a solid reason will keep you going. For some, it’s about being able to spend more time with family, others have a higher purpose that they are called for but need to be responsible because of family. Whatever the case may be, only you can know your reason(s). Do some soul searching and write down whatever your reason is.Know your Financial Freedom Number: Financial independence in achieved when your passive income surpasses your expenses. It’s important to have a budget and know exactly how much your expenses add up to monthly. This number forms the basis of your freedom number. Your objective from that point is to have enough assets that will passively give you more than that basis. This will then shape what your strategy will be – the geographic location, the type of asset class,
- your financing options, etc. Not knowing your freedom number, is like playing competitive soccer without a goal post – you don’t know when you are winning or losing!
Get Knowledge, Time & Money: These are the three things that every successful real estate investor must possess. Most people seldom have all three at the same time – a working professional for example may have money and knowledge but no time, a student may have time and knowledge but no money. To bridge that gap, it may be necessary to find a partner. Choosing a partner is one of the most important things that can make or break your investing career. You should choose a partner that has both an element that you are missing and one that you have. That common element should be KNOWLEDGE. Everyone must get knowledge to have any semblance of success in their investing. The student above may form a good partner for the working
- professional – the student does the field work because he has more time, while the professional provides the money since he is working.
There you have it, no more excuses!
Do you agree or disagree? Share your thoughts and comments below.
You don’t have to be great to start, but you must start to be great!