There are TONS of people out there that are dedicated to 'teaching' you how to invest in real estate, quit your job in 90 days by investing in real estate and other catch phrases that get you to buy a course only to start out excited and encouraged to invest but quickly get discouraged or worse yet, FEAR that you will FAIL because of lack of experience or knowledge.
It is true, knowledge is power. As a private pilot, you NEVER stop learning and improving. Same for real estate. I think that's why I love this so much because it's never boring and always evolving making different ways to make or create wealth. But, knowledge is only good if you USE IT. So, you can study and listen, network and observe but until you get out and PRACTICE your knowledge, you won't go anywhere. FEAR is the worst enemy to investing or dealing with real estate. Fear of failure, embarrassment, making mistakes, being taken advantage of.....you name it, it's gone through my mind and I'm sure it goes through may others too. So, what do you do? Well, this may sound very odd to many but the first thing I do is pray about it. If it's not the right thing to do, don't let it happen. Make it go away. Using your knowledge to the best of your ability is the next thing, trusting your instinct and 'gut' once the deal is presented. Once you've done your first deal, they all get easier and easier.
I watched a first time investor get their first investment property 2 years ago. I know they went through the exact same process. They own 8 now and love every minute of it. It's their retirement income. Have they made mistakes? Absolutely! But, the successes outweigh the mistakes making them very small. Here's an example, I told my wife one day that if you only have 1 rental and it's full, you have 100% occupancy but if you have 1 rental and it's empty, you have 0% occupancy. So, what is a bigger risk? If you consider owning 10 rentals vs 1, going from 100% to 0% with 1 rental or 100% to 90% with 1 rental empty? Pretty clear huh? The odds of having 10 rentals with all empty are so minimal but having 1 rental, the odds are pretty good it will be empty at some point.
So, how does all this tie in to building wealth with real estate? Well, to many, in today's market buying real estate immediately becomes a scary thing because of the amount of money it takes to control the property. It's a lot of money to think about. On top of that, for those thinking about rentals, thoughts immediately go to 3am calls, move outs in the middle of the night or worse yet.....repairs! Honestly, many of this can be minimized with just a little common sense and planning up front. That's really all you need. Think about this, if you owed $1,000,000 but had the cash flow to pay for $2,000,000, does that seem like you can handle that debt? All of a sudden, $1,000,000 doesn't sound so bad. That's kind of the way it works with real estate. I haven't even gotten into tax benefits, multiple streams of income opportunities, leveraging and exit strategies that you can take advantage of using real estate as a vehicle of investing. It's truly an amazing thing. Just buying a home to live in builds net worth. For most Americans, the primary residence is the largest single investment for them.
Deb and I take a tremendous amount of pride and care because of this. Regardless if it's investment property or primary residence, we know it's a big deal for the majority of people so it needs to be done correctly. If you would like more information about us and any of the properties available in the greater Springfield area, visit our website; www.thebroadwayteam.com and get some answers. Set up your own search and stay up to date on activity in the market. If we can help you buy or sell your home, we stand ready to serve you and get the best deal possible.
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