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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- Home price gains slowed in June, but low mortgage rates may heat them up again https://www.cnbc.com/2019/08/27/sp-case-shiller-june-2019.html
- The inverted yield curve is doing something weird to mortgage rates https://www.cnbc.com/2019/08/22/the-inverted-yield-curve-is-doing-something-weird-to-mortgage-rates.html
- 7 Differences Between Real Estate Funds and REITs https://money.usnews.com/investing/real-estate-investments/slideshows/differences-between-real-estate-funds-and-reits
- 10 Fundamentals Beginning Real Estate Investors Should Know https://www.forbes.com/sites/forbesrealestatecouncil/2019/08/28/10-fundamentals-beginning-real-estate-investors-should-know/#6217eb341d99
- Home Prices Notch 32-Month Growth Streakhttps://www.forbes.com/sites/alyyale/2019/08/27/home-prices-notch-32-month-growth-streak/#7cc954cc5b51
Topic: Seven Rules
- Buy for Less than you can sell it. Rent it out for less than your monthly payment. Know your numbers.
- Loan Constant
- Cash on cash return.
- 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.
- Recruit a great Team
- Great Contractor – Vital piece
- Great Realtor – Vital piece – more plentiful than great contractors.
- Bird Dogs, Wholesalers, Marketing people
- Staff to your weaknesses
- Treat it like a business
- Understand how a business works.
- Focus on the bottom-line
- Business cards, logo design – all a form of procrastination
- Entity structure – important, but secondary.
- Do everything at first and stop as soon as you reasonably can. End up doing only those things that only you can do.
- You can scale systems, processes and products but you cannot scale YOU.
- Read the book E-Myth Mastery Brian Gerber.
- 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
- Include where you live, how you spend your days, etc.
- Include your reputation – how many people know who you are and what do they think of you?
- Make a budget showing how much it costs to live your dream life.
- How much net return can you reasonably expect from your investments (real estate, stocks etc.)?
- 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.
- Think about your legacy. It is pretty easy to make more than you really need in this business. Choose generosity as a lifestyle habit.
- Leave your children enough to do something but not enough to do nothing.
- 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