We all want residual income. Our money making money for us. High ROI, is always nice. Okay, you get the point. Real Estate investing can be a great way to do these things if you play the game right. You got into the game cause you wanted to be the next Lee Shau Kee (19 billion), Donald Bren (14.4 billion), Richard Lefrak (6.1 billion) and so many more. Are you finding that you just can’t make it work? What could be holding you back?
EMOTIONS
There are so many mistakes people make when investing in real estate. I believe the most costly one is letting emotions get in the way. When you are buying real estate for financial gain it should be based on numbers. So many new investors go with the mindset that they are shopping for a home. They approach the home as they would buying their first home. Please do not do this. Get the idea out of your head that you will ever live there.
For it to be a good investment you should be making an instant income in the buy. Not in the sell. Sometimes this rule can be ignored. But, in the beginning it should be your golden rule.
5 Ways to keep emotions out of it
1.Pretend that you will never live in the home.
2.You do not want the nicest home on the block.
3.Do your homework. Trust the numbers
4.Outsource as much as possible to maximize your time
5.Avoid penny-pinching and stick to your budget.
How many of you have walked into an investment and wondered if you could ever live there? You think you have to fix this or change this cause you could never live like this. The thing is, you will not be living there. A renter will be and they will not take as good care of the home as you would. It needs basic updates with a clean livable area. Don’t make costly upgrades that will not affect the value of the home. Consult with your real estate agent before doing any upgrades.
You do not want the nicest or most expensive home on the block. No one is going to ask you where your rentals are and then go drive by to see what they look like. All they care about is the fact that you are cash flowing. The way your rental homes look are not a reflection of who you are.
Numbers never lie. If you have done your homework, then you should have a good idea if that home will turn a profit or not. If it’s not turning a profit on paper it will not magically turn in real life. Feel comfortable on paper. Trust the numbers and proceed with confidence.
Outsourcing is leveraging. Why are you investing in real estate? I don’t think it was cause you love being on your hands and knees cleaning toilets. It was most likely to play more golf, put the kids through college, be more. You will just burn out and quit. Play the game for life. Treat it like a business. Would you start a dry cleaners and be the one cleaning the clothes? How about a sub shop and making the sandwiches? Treat it like a business and it will reward you like one.
Create a budget. Know how much things cost and set aside a reserve to run your real estate investment business smoothly. If you penny-pinch then that’s what you will get- pennies. I know you are wanting more and you deserve more. Be wise. Stick to your budget. Know your numbers and before long your name will be on the Forbes top list.
By keeping your emotions out of investing you are allowing yourself to create wealth beyond measure. You will have an inheritance to pass on for generations. You will be calm, happy and free. If you ride the emotional roller coaster you may find yourself puking when you get off and swearing you will never go on that ride again. Instead be in control, emotion free, financially free.
I’m changing lives one sale at a time. I would love to change yours. I have partners all over the world. Visit my website: liveDREAMinvest.com and let me know how I can help you with your real estate dreams.
