Real estate investment is not an overnight, get-rich-quick type of financial maneuver, but it can pay huge dividends in the long run. Broker Ian Hoover draws on his personal experience to provide a roadmap and get you started.
Many real estate agents have an end goal of getting into investing to enhance their careers. I was lucky enough to start investing before my real estate career took off. It takes personal determination and tons of work ethic, but it is possible for even new agents to start thinking about investment opportunities.
At 24 years old, I set a goal of having 25 units by the time I was 40. I reached that goal at the age of 28. The story of how I got started in investing is simple; it started with a good read and a mentor who believed in my future success.
Rich reading mindset
In 2007, I was 19 years old and had zero idea what I was doing. I read a little book called Rich Dad Poor Dad; having come from a family that didn’t know about wealth or finances, this idea of assets blew my mind. I had to get into real estate.
I just happened to be moving, so what better time to buy than now? My idea initially was to do a live-in flip. I purchased a property for $30,000 but never ended up selling it. This is now one of my cash-flowing rental properties and is worth over $120,000.
In 2013, I met my mentor, who is now my partner. I struggled to buy more assets due to recouping down payments quickly enough. He showed me how to buy houses with OPM or other people’s money. Again my mind was blown. I could purchase assets like Rich Dad with little to no money out of my pocket.
Setting my goals
Initially, I was all about the cashflow. For the past five years, I have changed my outlook to buying quality units vs. focusing on the cash flow. After all, most of my units will be paid off when I need excellent cash flow.
Once paid off, the cash flow will increase dramatically. With my focus more on quality, my net worth will continue to grow faster, tenants paying my mortgages and the equity rising month in and month out.
Being a landlord is not fun; it sure isn’t sexy, but if you look at the big picture, it will open the door to long-term wealth and, eventually, a very comfortable life. There are also plenty of fantastic tax benefits for owning real estate.
Thinking of your future
We are not provided with a 401k or a pension in the real estate industry. One advantage we do have is that we have insider access to the MLS and market trends. We have access to properties before they hit the market, and we watch the market substantially more than an average consumer or investor.
The question is, if you are reading this and not investing in real estate, why aren’t you? Is it too risky? Any type of investment is going to have risk. Just ask the stock investors or the crypto investors right now. You can do what most agents do and plan to work until the day you die, or you can start building long-term wealth.
Property investment will not make you rich overnight. It will not be fun or easy, but you can take action now and change your life, and your family’s future, forever.