The decision to invest in real estate was one of the best professional decisions I’ve ever made. However, there are a lot of things I wish I knew before I began. I teach the Law of Wisdom in many of my lectures where I emphasize before you jump into any new venture, you should seek out knowledge, wisdom, and understanding. If you’re considering investing in real estate, read these tips first.
What I Wish I Knew Before I Invested in Real Estate
The Right Formula is Key
In my real estate teachings, I always include the formulas that have led to success for me. These formulas are incredibly important, and whenever I work with a real estate agent, I make sure they know my formulas as well. The biggest risk in real estate is making a bad investment. As long as you abide by these formulas, your investment is sound.
Formulas can change depending on the market you are purchasing properties in, and whether you like to buy and hold or fix and flip. No matter what, you always run properties through the formulas as the first test to invest.
Don’t Let Your Emotions Make Decisions
I remember one time my wife and I were shopping for a property in Texas. We had found this beautiful townhome that we could rent out to our kids or to others in the area. Well, Becky just fell in love with the place. It was gorgeous, and it was in a great neighborhood. However, when I ran it through my formulas, I noticed I wouldn’t be making enough cash flow if we rented it out. Though we really wanted the property, we both learned the lesson of not investing based on our emotions.
You Learn Quicker with Mentors
This applies to any area of business, but it is one of the most important strategies I put in place when I began my investing journey. Not only have I had many mentors, but I’ve also been a mentor to others. Mike Davis, who speaks at many WealthBuilders’ events, once asked me how I built my wealth. He was a pastor looking for ways to increase his wealth, which is very similar to my story. So, I sat down with him and taught him the foundations of investing in real estate. Now, he is able to be financially free because of what he learned. You can learn almost everything for free on the internet, but it sure does speed up the process and you end up making fewer mistakes with a mentor.
If you’re interested in learning more about real estate, WealthBuilders is hosting our bi-annual Real Estate Workshop this April. Bonus: Use the coupon code REALESTATE20 to receive $100 off per ticket! Coupon valid until March 11, 2020. Click here to learn more and purchase your ticket!