There’s something to be said for the virtues of experience and learning things the hard way. Yes, when you take a few knocks, the lessons you learn will be more concrete in your head. But guess what, there’s a high cost to be paid for experience – TIME.
And guess what we all have a limited amount of? Yes. TIME.
So, for someone who’s been in the real estate investing game, or is looking to start – You will have to go through the learning curve. There’s absolutely no way around it.
But, there is a way to accelerate your progress through that curve. It need not be maddeningly, soul-crushingly difficult for everyone. You can learn from the wisdom of your peers and those who have come before you. Let us look at three real estate investing lessons that you should forge into your DNA immediately.
1. Don’t trust testimonials blindly.
Everything is advertising. Yes, that might seem like a blanket statement, but it is true. Every real estate company, every agent, every property manager and every other cog in the real estate machine is there to make a profit.
If you’ve signed up to a few real estate newsletters or visited some websites in the industry, you’ve undoubtedly seen testimonials. Every shining, happy looking, before-after photo placed conveniently under an e-book, a contact button or a sign-up box. Testimonials. All of them.
It won’t be a surprise to you that not all of them are true. So, don’t let the flashy website designs and the bold claims fool you. It’s all advertising.
2. Income and cash-flow are two completely different things.
You’ve heard the phrase “cash-flow is king” too many times as a real estate investor. The industry is swamped with people who care about one thing – making the sale and moving on. Sure, the real estate business isn’t inherently altruistic, but there’s no reason to be unethical.
Here’s what the “cash-flow is king” people don’t tell you – you can’t calculate the long-term value of building good relationships. Your clients are walking money bags that you fleece and set around finding another one. A happy client can land you many more deals in the future. Via word-of-mouth or simple introductions, your relationships can benefit you tremendously.
Yes, disposable income is great. It can buy you a new car or fund your next vacation. But, if you take a slightly different tact, that income could come your way in multiples in the near future.
3. You don’t have to start at the bottom.
Before you rise up in arms about this, let me explain. Yes, you will have to go through the legwork for finding your first client. After which, you’ll have to work on landing subsequent clients. So on and so forth, until you expand your business into an empire that gets you rich beyond your wildest dreams.
But, there’s a way to do all of this smartly. There are a lot of people who’ve already done all of the above. And not all of them started on their own, without having a shred of investing knowledge. No.
What smart investors do, and the real estate market is no exception, is they surround themselves with other smart people who expedite the learning process along. You’ll learn more in a month of spending time with a real-estate mogul than you will from years of reading investing books. Find experts, and adapt parts of their process into your own. You don’t need to reinvent the wheel, you just need to lend it your own flavor.
The real estate investing game is hyper-competitive and can often seem complex from the outside. But, with the right approach, you can reach the heights you wanted to achieve at a pace that will far exceed that of your peers.