Flipping America 283, Seven Rules for Real Estate Investing

podcast 283 Seven Rules for Real Estate Investing

Opening:

Today I’m going to share Seven Rules for Real Estate Investing. Why seven? Why not 23 or 4? Recently I was on Nick Raithel’s show and he asked me to develop seven rules and only seven. I kinda like what I did so I thought I would repeat them here, although I do encourage you to find Nick’s show at Apple podcasts and give him a listen. These seven rules provide a framework not only for your real estate business but also for your life and career in real estate. 

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News:

Topic: Seven Rules

  1. Buy for Less than you can sell it. Rent it out for less than your monthly payment. Know your numbers.
    1. ARV
    2. Rehab
    3. Holding
    4. Loan Constant
    5. Cash on cash return.
  2. Learn the terminology and their proper use. It’s ok for this to be an on-going venture. Don’t try to conquer this before you begin. 
  3. Recruit a great Team
    1. Great Contractor – Vital piece
    2. Great Realtor – Vital piece – more plentiful than great contractors. 
    3. Bird Dogs, Wholesalers, Marketing people
    4. Staff to your weaknesses
  4. Treat it like a business
    1. Understand how a business works.
    2. Focus on the bottom-line
      1. Business cards, logo design – all a form of procrastination
      2. Entity structure – important, but secondary. 
  5. Do everything at first and stop as soon as you reasonably can. End up doing only those things that only you can do.
    1. You can scale systems, processes and products but you cannot scale YOU.
    2. Read the book E-Myth Mastery Brian Gerber.
  6. Picture your life in the future – 3, 5, 10 years. What is the life you dream about? Call it Vision, Goal, whatever. Terminology doesn’t matter
    1. Include where you live, how you spend your days, etc.
    2. Include your reputation – how many people know who you are and what do they think of you? 
    3. Make a budget showing how much it costs to live your dream life.
    4. How much net return can you reasonably expect from your investments (real estate, stocks etc.)?
    5. How much will you have to invest in order for those investments to afford your lifestyle? You are financially free when your passive income pays for your lifestyle. 
  7. Think about your legacy. It is pretty easy to make more than you really need in this business. Choose generosity as a lifestyle habit.
    1. Leave your children enough to do something but not enough to do nothing.
    2. Find a cause bigger than yourself – perhaps more than one. Giving makes you a better person and actually adds to your life wealth. 

Motivational Thoughts for the day

  • “Knowing is not enough; we must apply. Willing is not enough; we must do.”
    – Johann Wolfgang von Goethe

Expected Air Date: Sep 11, 2019

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