Everyone finds real estate investing in a different way. Before investing in real estate here are three things that are helpful to identify.
Know your story
For the longest time, I thought that I had gotten my start in real estate after leaving the army and reading the book “Rich Dad, Poor Dad.” However, a couple of years ago I came across some photos of me and my brother carrying a large piece of plywood as kids as we helped our parents fix up a farmhouse that they had purchased when we were young. We lived in a trailer on the property and spent countless hours fixing up our new home. Looking back, this is truly where my love for adding value to properties began. If you find real estate investing later in life, does this mean you won’t be as successful? Of course not! Like I said at the beginning, everyone who finds themselves here arrives in a different manner but everyone’s natural giftings and grit are what will determine their success. When we know our story, we have the first stepping stone we need in our journey.
Identify your strengths
If you are a high-level executive or a doctor who works 80+ hours a week and has a lot of extra capital you want to invest in real estate, your strength isn’t time, it’s money. Investing in real estate is a great way to make a return on your money, however, you are better off investing it with someone else managing a project because while money is your strength, time is not. Being honest with yourself upfront will save you a multitude of stress and frustration in the long run. Now, if you are someone who has a remote job or perhaps works as a freelancer and you have a lot of time but not a lot of capital, you are better off learning to find and manage deals than you are dumping your entire savings into a deal. The beauty of real estate investing is when we identify our strengths early on, we can team up and lean on the strengths of others to create an even better stress-free deal.
Look for distress
Distress doesn’t always come in the form of a dilapidated building. Maybe it’s time for an investor to get out of a deal and free up some capital, or maybe economic decisions in a certain area are driving people away. Only looking for exterior or interior distress in a property is an easy way to miss out on a lot of potentially great deals. The more open we are to considering things, the more likely we are to find deals that work for us. When we know our story and our strengths, it is much easier to figure out what will be a good fit for us. What might be a horrible deal for me might be a perfect deal for you and that’s the beauty of real estate investing.
Want to hear more investing tips? Check out my interview on J Darrin Gross’s Commerical Real Estate Investor Podcast.
LinkedIn: Jake Harris
Youtube: Jake Harris