So you want to start investing in real estate, but there’s a lot you don’t know.
How can you confidently take the plunge without learning big lessons the hard way?
The biggest (and hardest) lesson I learned about taking calculated investment risks was making sure I was simultaneously investing in life. Sure, it’s cheesy, but maybe that will help you remember it, keep it in the front of your mind. Here are three great tips for investing in life that will help you make wise investment decisions along the way.
Cultivate a Learner’s Mindset
Whatever your investment goal, make sure you do your research. I invested in my real estate investment goal by expanding my knowledge of construction and understanding what it takes to flip a property, building expenses, zoning, and timelines. This knowledge was so valuable, it pushed me further. I started working in real estate, buying properties, and investing in distressed properties. Maybe your plan isn’t to do the actual flipping, but you can get a general understanding of the task at hand and find others who know what you don’t.
Why is it important to learn from others who know more than you? Well, they know more than you! When I turned 28, I made my goal. I became a millionaire. Sadly, because I hadn’t made a long-term plan to sustain my wealth, things went south from there. I went from being a millionaire to shouldering debt. It was overwhelming. It was a massive lesson in investing in property and in life. I realized then that if I wanted to get out of the hole I’d dug myself over years of negligence, I’d have to make a change and get serious about learning from others and adopting the mindset of a lifelong learner.
Surround Yourself with the Right People
My love for real estate began when I was a young boy. It took time and as I found success, I got cocky. I believed I knew better than others and charted my path on my own. Eventually, I learned rather devastating lessons as I plummeted from grace. I wouldn’t wish it on my worst enemy. Years later, I would write my book, “Catching Knives,” to focus on what I learned in investing in real estate to help others avoid the havoc I experienced. All the information you need to take smart calculated risks is out there. Others are sharing it, you just need to put yourself in the circles to find these people.
Once my mindset shifted, I started making better connections with other real estate enthusiasts. I traveled and met entrepreneurs, mentors, and friends that helped me build back what I lost. My own insight in construction allowed me to make better deals with a maturity I didn’t have in my twenties. If you’re just starting out, there’s no shame in surrounding yourself with people who have gone before you and made the mistakes so you don’t have to!
Remember Your Why
I had a goal of becoming a millionaire before I was 30, and real estate got me there. The kicker in all of this was that by the time I had met my goal, I didn’t have anyone to really share it with. The woman I planned on marrying had left me, my family was fed up with my… we’ll say “Millionaire Attitude,” and I was alone. In meeting my goal, I lost things that were invaluable. Beyond my relationships crumbling, I didn’t care for my health, and I didn’t have a sustainable path to wealth.
Before you take a calculated risk, ask yourself why you’re taking the risk in the first place! Is it to build wealth for your family? Is it to find more time to spend traveling or adventuring with the people you love? Don’t lose sight of the goal behind the goal. That’s the riskiest thing you can do.
If you want to hear more details of my journey and other motivational content, check out my YouTube Channel. We go deep into taking the calculated risks that get you the life you dream of.
LinkedIn: Jake Harris
Youtube: Jake Harris