We are often asked by people about getting started in real estate investing. Our answer to this question is becoming clearer to us.
The key to getting started in real estate investing and in being successful as a real estate investor is PLANNING. Successful investors always have a game plan. Educated real estate investing is knowing how to do deals. They don’t know why they are doing deals or where they are going. They just aimlessly pursue opportunities.
The answer to these thoughts is planning. You have to take responsibility for your life, your finances, your spending, and your actions. There are important actions that successful investors can make plans for, such as:
1) They control their debt. You need to control your debt (i.e. pay it off). If you have it, debt will be your master. It will cause you to lose sleep at night, force you to hold on to your job, and keep you doing things that you don’t want to do. All of my successful friends stopped accumulating debt. They no longer buy cars and other consumer items, eat out or spent anything unless they have the cash to do it. Many of them even scaled back their lifestyles. I personally moved into an apartment, which is a common theme among many of my friends. They were willing to give up the “glamorous lifestyle” for a little while in order to live a lifestyle that would allow them to live out their dreams. They came up with a plan to pay off their debt and vowed not to accumulate any more.
2) They know what they want out of life. Not everyone really knows what he or she wants out of life. In fact, most people do not. When I talk to others about their goals, most will say something along the lines of, “I want to make $250,000 per year” or “I want to have $5 million in the bank.” When I ask them why, they can’t answer the question. They normally respond, “Because I want it.” Then that dream dies the moment they want something else. Often people think that making or having a lot of money will cure everything and give them the life that they want. This is a lie that society wants us to believe. If you don’t know what you are doing, money will make you miserable. However, money and a plan can set you free.
3) They are able to focus. In order to be successful at anything, you need to become good at it. The mindset of a real estate investor is to be successful quickly. No one sits down and makes up a plan to be financially free in 40 years! It’s more like two to three years, though some people will actually give five to ten years a shot, but that is rare. The good news is that two to three years can change your life if you have a plan and direction. Without these tools, these years could ruin your life. Investors who focus normally find a niche in real estate investing and go after it. They are not pursuing all different types of investing. (People who sell “the full toolbox” of courses may be angry at me for saying this because they will sell less if you believe that you only need one method of investing. But I just tell it how I see it.)