Three Things I Wish I Would Have Known When I First Started Investing
1- Avoid First Deal Desperation. Don’t commence a deal just to learn how the process works and hope maybe just to break even figuring the information learned is the value. I know that hunger is awesome. It is to be embraced, but watch out, because it can also totally mess with your head and cloud your judgment. You’re not in this business to do deals; you’re in this to make money. Be sure to have a clear picture of what a good deal is and stick to that picture. Don’t be afraid to ask others especially your agent. Repairs and upgrades can be deceptively expensive and your estimated profits can quickly evaporate over one missed factor. Stay hungry but not fool-hearty. Learn your market and fundamentals. Stick to your numbers.
2- Choose Your Local Mentors Very Cautiously. Do not cozy up with the first real estate investor you meet. Who has told you a lot of things about the industry and had an interest in mentoring you. You could wind up being a tool for them to take advantage of in your naivety and desire to get “in the game.” Don’t get in bed with them too quickly and if something seems a little off, don’t hesitate to ask others. Here it is important to learn to lean on your real estate agent who is bound by an ethical code and has people in the industry whom they have worked with for years and years. Trust cautiously, and verify well.
3- Don’t Be an Education Junkie. You have probably heard the phrase, “Smart investors invest in their education.” It’s true. The cost of education can be expensive, try factoring the cost of ignorance! As an agent, I am introduced to all kinds of programs and workshops in hotel lobbies from Las Vegas to here in town. All promising so much and asking for even more. Dropping thousands of dollars on education that you can realistically pick up at the local library or on the internet. I suggest you be willing to invest in your education, but have a plan, set a specific budget and exercise self control. I knew an agent that upon closing their first deal spent half of their commissions buying advertising and taking classes that did them no favors. I found out about it after the fact or I would have advised that individual to stick to a plan and budget. Please watch out for “free seminars” or credit limit scams. They are designed to take your money. Finally cautiously evaluate the expensive seminars as the price you pay has no correlation with the value contained within it. Let me say it one more time. The Public Library!