This morning I was thinking about all the reasons and excuses I thought about before I became a real estate investor. I was like most people when I started too. I had very little money to invest, but I knew it was the right thing to do and would pay off in the long run. I just had to have the courage and go all in.
The first four points are really things you have to stop overthinking. And the last one is a really bonus idea and concept. It is not something you must stop. It really is something you must actually start thinking about.
Don’t listen to people who don’t own real estate.
I put this number one for a reason. I think it is most important. The remaining three are also important, but to me not nearly as important as this one.
The reality is most of us listen and spend time with people that don’t have an understanding of what we are trying accomplish. And to be blunt, if you are reading this, you already are different than most people out there and are likely at the top of your friend and family group.
I don’t mean to be mean here. But this is true. At the top I mean, you are most likely more financially competent, working to change your life, seeking growth constantly, etc. I know this because I have been there as well.
When you start to tell your friend/family group about what you want to do. They most likely will all tell you that it is too risky. Don’t listen. Get around people who have done it. These people know you can do it and will help you do it.
Waiting for the perfect time.
There is no such thing as the perfect time. I think all of us are thinking that there will be a perfect time to do this or that at some point in time in the future. That is the wrong attitude to have. The only time we have is the time right now. Markets are changing all of the time. You just have to do your analysis and go all in. The best time to start would have been ten years ago but since you didn’t the bets time is today. Right now.
Thinking the worse case scenario.
I think it is built in our human nature to always think about the worse thing that could happen. Believe me, I am guilty of this all of the time. I won’t bore you with all of my issues. But the one thing I had to learn about real estate is in close to twenty years investing and buying properties, the worst case scenario hasn’t happened.
When I bought my first property in 2006. I was considering a four-plex and a duplex. I talked myself out of the four-plex, because I said to myself, what would happen if all four air conditioners went out at the same time. What would happen if all four refrigerators went out at the same time. And what would happen if all four units were vacant at the same time. I didn’t think I had the money to overcome those kinds of issues all at once.
So I settled on the duplex. If I would have bought the four-plex. I can honestly say that my net worth would be at least $250K more than it is today. And guess what, now that I have over 50 doors that I rent this worst case scenario has never happened.
Thinking your full-time job will be enough.
I can remember when I went from making 43K a year to making 50K a year. Keep in mind this is more money that either one of my parents had ever made up until that time. And then when I went from 50K, to in the 60’s and then into the mid 80’s, and ultimately multiple six figures since my early 30’s.
All of these jumps in salary were huge to me. I never knew anyone who made that kind of money, at least not in my family. In my small world this was a lot of money. And I am very grateful for ever opportunity I have had and the people who helped me along the way get there.
But even as a single person for most of those significant pay increases it was never enough for me. Obviously I was investing but I never really lived a very outlandish lifestyle. Look I get it, did I have a lot than most people. Yes. But it still wasn’t that significant.
I say all of this, because even with a high salary in my job, it was still difficult to get to a point in my life (I’m still not there) for total freedom and security. And thinking a job will do it is just crazy. And I had significant pay increases during that time. For most of us our full time job will never allow us to become wealthy. You have to invest.
I mention time twice in five points. You are thinking I am crazy and why doesn’t this point fall under the other one.
This one is different. I am talking about the big clock here. The one that we all have. Yes its morbid, but it is reality.
Our time is limited here, we all know this whether we want to admit it or not. I am 43. If I can hit my goals by 45. I am still technically close to middle aged and really on the back half of my lifespan if you consider all of the statistics.
I am using this as fire under my ass. My dad died at 60. I can still remember the day he died talking about his own retirement. Which in his world was maybe 3-5 years away. But he had worked his entire life to retire one day. I made a decision that day I took him to the hospital and watch him die that I would not do that.
Since then I have tried to work and invest like my life depends on it. Because it does.
I have a great life right now. Really no complaints, but I am working towards one goal. Financial Independence. I chose income producing real estate as my vehicle of choice and I am all in on it. Whether you choose real estate or not. You have to go all in.
To your success and your future.