You are not alone! Almost all Greeley properties investors had to spend countless hours at the beginning of their investing careers researching the various strategies trying to figure out where they should begin.
While there is no single right answer for everyone, there are three key questions every potential investor needs to ask:
A Great way to start any venture is by having an END Goal in mind, then laying out a plan to go get it! Even if you have to make changes along the way – which you will, the “getting there” is a great part of the fun.
Real estate investing can do anything from learning how to put a quick (in 30 days, or less) EXTRA $5,000 in your pocket every month, to making all your financial dreams come true with an annual after-tax income in Millions of Dollars. You really do need to decide upfront, if you are looking for the multi-millionaire status, or just to put some quick cash in your pocket to pay bills.
Regardless of your dreams and desires how you will use real estate investing to get where you want to go in life, we believe that there are three critical rules you must follow, if you are going to be successful. Here they are:
RULE NUMBER ONE IS: FOCUS-FOCUS-FOCUS
If you are looking for a long-term commitment to this business, then you need to establish up-front that you will need to set-aside some money from each of your transactions/deals to re-invest in your education, AND it is probably in your best interest to start with one strategy and be prepared to switch to a different strategy once these goals are met.
As an example, let’s say you ultimately want to be a developer (like Donald Trump, or Sam Zell, or Trammell Crow), but today you have a job and are $50,000 in debt. Your first step might be to generate quick cash over the next year to pay off the debt, then half way through making this happen (say in month six) begin the process of implementing a strategy to generate enough income from your real estate investing to leave your job, then after you have created a stable base (enough to pay bills and then some) from your investing activity, to start a plan to become a developer. All together, this may require three different strategies.
A “Classic” mistake that many novice investors would make is to attempt all three strategies AT THE SAME TIME – DO NOT DO THIS!!! Better to learn a strategy for quick cash, master it, then move on, then to attempt to learn three strategies at the same time.
OLD AFRICAN PROVERB: “He Who Chases Two Tigers Ultimately Gets None”
Regardless of the Strategy to start with, history has shown that people who FOCUS their time, energy and money, are more likely to succeed than those who do not.Be Patient – Be Focused – Start Small, Grow Big.RECAP: Rule Number One is: FOCUS-FOCUS-FOCUS
RULE NUMBER TWO: YOU LEARN BY DOING!The second important thing to know about real estate investing is that you learn by doing! We know that there are a lot of late-night infomercials which say “Come to our FREE seminar, spend $5,000, and tomorrow you will wake up a Millionaire – but the problem is we have never found anyone who will admit that this really worked. Also, there are people who spend good money going to college, or graduate school and study how to “succeed in real estate”, and by and large, this can work, if you then go on to commit to 25-40 years working as an employee of a real estate firm, making someone else rich – if you are fortunate enough, you may learn, enough (over time) and then go out on your own.
And yes, we all know of people who buy every book, every tape, and go to every seminar, and become walking real estate investing “Encyclopedia’s” – BUT NEVER DO ANYTHING WITH IT – BAD IDEA! Why, because if you never put into practice what you read, or hear, you will ultimately convince yourself that “this real estate thing” does not work – UNFORTUNATELY, both history and Forbes Magazine would prove you wrong.
Ever since John Jacob Astor became America’s First Millionaire in the 1800’s by buying what would ultimately become Manhattan, more American’s have become wealthy through investing in real estate, than by any other means. And those who have made their fortunes in other areas (like operating businesses) have reinvested their profits into real estate than any other asset class.