Find Your Fit in Investing

There are 86 real estate careers, each with dozens of options resulting in hundreds of possible choices. But it can all come down to three categories:
  1. Buy with intent to re-sell.
  2. Buy with intent to create income.
  3. Invest in someone doing 1 or 2. 
How do you know which is for you? 
 
If you have a job or a career that you either love, like, or plan to tolerate, the fix and flip thing might not be for you – unless you have no life and want to devote every minute of your free time to those projects. 
 
If you want to end or replace your career, and the idea of flipping properties appeals to you, you need to decide, at least in the beginning, whether you want to fix and remodel properties or flip in different ways. There are multiple possibilities here and most of it comes down to what you are doing. I started out just buying, fixing, and selling. I didn’t realize there were ways to sell a property or the contract to the property without fixing anything. But there are, both in your backyard and around the country! 
 
If you want to keep your job and career, you are probably looking for income-producing properties. This means you need to think about things like rental houses, small multi-family like duplexes or triplexes, or apartments. But don’t limit yourself. You can buy anything people or companies will rent – office space, manufacturing space, retail, it doesn’t matter what you choose. 
 
What DOES matter is you choose something, master it, stick with it until you have it down before adding other skills or asset types. 
 
Perhaps you want your weekends and off time to spend on yourself and with your family. You just want to put your money somewhere. Great. There are many options for you as well. You can buy shares in a REIT, and real estate mutual fund, invest in a crowd-funding site, or put your money into a private offering, such as the one offered by me. As host of the hit radio show/podcast Flipping America I get the inside scoop on the best places, the most effective techniques, and the highest ROI possibilities in the marketplace. You can join me if you wish. 
 
No matter which option you choose (and you can pick them ALL eventually), the first thing you need to do is educate yourself. Learn as much as you can about your options. Think about your personality – your strengths, your interests and abilities. Then consider how much time you have or want to put into this. Lastly, consider your financial position. This is going to go a long way in opening up or limiting your options. 
 
Right about now you might be thinking about how cool it would be to put all of this on some sort of chart, right? Yeah I thought so, so I did. Just click the link and watch the video about this. 
 
And you can download the presentation by clicking here!
 

All the best! 

Find Your First Deal

People will tell you there are 100 or more things to do to get ready to be a real estate investor. Politely ignore them. There is ONE THING.

Find a deal. That’s it. If you have a deal, you’re in the game. If you don’t, you’re not. Simple as that. Ok, I know there might be some steps to finding a deal, but I don’t want you to lose focus, procrastinate, or suffer from the paralysis of analysis. Find a deal, keep learning, and figure some things out as you go along. FORGET perfection. Just focus on honorable profit. By “honorable” I mean profit with integrity. In the video below I’m going to tell you several ways to start finding deals. The best part about this is, most of them are free – requiring an investing only of your time. You will need to know what a deal really looks like – how to find something someone else will buy at a price that will make you a profit. And it’s best if you have a buyer and basically hunt for deals that fit what they are looking for. But you will figure all of this out.

Do you need business cards?

This is a yes and no question. You do NOT need a fancy logo or embroidered golf shirts. You don’t even need a company name to start with (You will need one soon, but the DEAL is first). So you don’t need business cards in the traditional sense. But you DO need marketing collateral. You need something to put into people’s hands to remind them you’re ready to buy their house and provide a good way for them to contact you. I’m going to help you in this. That’s why you can go to the resources page and order 250 FREE business cards (you just pay shipping) that advertise to the world you are ready to buy their house. Do that after you watch the video. You can take notes, take screen shots or whatever, but you can also download the presentation I use in the video. You’re welcome.

How to Make Money in Real Estate

On show 108 of Flipping America, I documented 85 possible careers in real estate. Since that time we found one more so we are at 86. Each of these has two or three or thirty variations, possibilities, specialty areas, or asset classes. But they call can be categorized into one of three methods of making money in Real Estate
  1. Buy with the intent to add value and re-sell. This is the FLIP model.
  2. Buy with the intent to create rental income. This is the HOLD model.
  3. Invest in the activities of someone doing 1 or 2. This is the PASSIVE model.
 
Let’s illustrate these possibilities with three individuals. 
 
Meet Fred Flip. If you want to be like him you are going to be constantly shopping – shopping for that next deal. This is a business that requires day to day management, supervision, and care. (Notice he’s holding a house in his hand, about to put into his shopping basket. It’s a little surprising how many people don’t see this.)
 
Here’s Rhonda Rent. She buys a house or two each year, puts management into place and simply walks to the mailbox each month to get her check. There are always issues and problems of course, but they are a minor time drain compared to Fred Flip’s busy schedule. Of course Fred makes a lot more money than Rhonda — at least at first. 
 
Lastly here’s Pat Passive. He already has some money and he’s busy doing other stuff important to him, so he just wants to earn a nice return on his money. He can get involved with either Fred or Rhonda or both and he can do that with debt or equity or a combination of both. It’s completely up to how they negotiate the situation.  
 
This business is Fred’s job. For Rhonda it’s a part-time side gig. To Pat, this is just one more investment. 
 
Here’s something interesting. Fred and Rhonda can invest in any asset class – single family, multi-family, Office, Store-front, industrial, commercial land, short term, or storage. You can flip any of those and you can hold any of those. They also are not limited by time frame. And these properties can be local, across the country or even in another country. There are dozens of deal structures and funding structures available to them and through the combination of all these factors, there are literally thousands of possibilities. Pat can invest in any of these by finding the right operators with his preferred investment strategy. (You want to be Pat.)
 
Let’s compare these three methods of making money with a little chart. First in terms of Activity level. The Flip level will require High Activity – big time investment on your part. The HOLD strategy will require less time, but it will still take SOME. You will take time to find, fix, rent and manage those properties. The PASSIVE strategy requires the least amount of time, but it’s still not NO time. You have to evaluate the investment, which will take a little bit of time. 
 
And how do you actually make your income? Where does the money come from? If you are flipping it comes from your Activity. If you are a landlord, it comes from the property. And if you are a Passive investor your income comes from your money. 
 
As you are thinking about this you probably should consider the type of income you will be making and plan now to consult with a tax professional about the implications. As a Flip investor your income will be earned, although there are structures you can set up to your advantage. Hold investors receive their income as rents, which are taxed differently and there are tax advantages to holding property as well. Passive investors receive Dividend or Interest income – sometimes both. Please plan to speak with your tax professional as soon as possible.
 
Lastly let’s consider the skills. Flip investors will focus on construction. The Hold strategy requires management skills. And as a passive investor your primary skill will be analysis. 
 
So I’ve introduced you to Fred, Rhonda and Pat. Fred has a business and a job. It may not be that time consuming and if done well, it should afford Fred plenty of time for leisure, family, and hobbies. Rhonda has time also. Whatever her schedule may have been like before she acquired income-producing properties, it has not be greatly impacted by them. And now she has a bit more financial freedom for things like vacations. Rhonda is on her way to financial freedom – her non-earned income pays for her entire lifestyle. Pat may be a bit further down the road to Financial freedom. He’s on his way to wealth building and legacy. He has the time now while enjoying the fruit of both his labor and solid investing strategy to think about the positive impact he could have in the world. So which of these investing strategies is for you?
 
It might be all of the above. But it probably should at least include Passive investing. Here’s the cool thing about this site and the resources available to you. No matter what you decide, we are here to help you on this journey. Whether you want to flip, own rentals, or make good returns safely through real estate, we can help and we have opportunities for you. 
 
Your answer is going to depend on YOU. 
 
Your life vision – how do you picture things a year or two or ten. Not just in terms of what you have but the type of person you want to BE or the things that you DO. Where you live and how you spend your days. We have a mini-course on this coming soon.
 
Your financial goals. When you imagine your future lifestyle, how much will it cost? You will want to translate those financial goals into actionable steps. Click here for video on how to do this.
 
Your knowledge and abilities. If you have a vision and some goals but lack the knowledge you need, we have an abundance of information and resources available to you. Click here for training resources.
 
Lastly, your willingness. This one is pretty much up to you. Only YOU can decide to pursue this and only YOU can take the steps to get there. The information, guidance, and mentoring you need is readily available. But the one key factor in making money in real estate is YOU. (There’s nothing to click here. Instead, take your index finger that you would use to click and place it on your forehead between your eyes. Now say this: “It’s up to me.” Repeat this activity as often as necessary.
 
To take the next step, click on any of the links in this post and get started.