The theme of today’s episode is keep it simple. Instead of just wanting to buy a house and make the biggest deal ever, you have to start simple and learn all of the aspects of this business first. If you don’t do diligence, you’ll wind up in trouble financially. Start out in real estate investing where you have less to lose.
Those who have no real experience can run into trouble because:
- They don’t know where the good areas are to buy properties are located.
- They don’t understand the basics of rehab.
- They don’t know how to truly realize what they are buying.
- They don’t know how to correctly calculate the numbers.
- They get advice from others who don’t know what they are doing either.
- They think they have to get a partner, which can bankrupt them if major mistakes are made.
- They think they’ll learn everything they need from going to real estate meetings.
- They start out in the early years by only looking for properties in the multiple listings.
- They only buy properties based on price.
- They rush and don’t take their time.
All of these reasons prevent you from keeping it simple. There are people out there who will eat you alive if you don’t know what you’re doing. In the early stage, starter homes will be a better option as you are learning how to truly be a successful real estate investor. It’s vital to not get “big deal-itus”. Getting into a market you don’t know and having your head in the clouds will only put you deep into debt. Take my word for it as I’ve learned the hard way.
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