Over the past 8 years as a real estate investor I’ve made a lot of money, but I’ve also made a lot of mistakes. Of course, almost all of the mistakes came when I was new to the business and when I had no idea what in the heck real estate investing really was.
I remember seeing an infomercial (I don’t remember who’s it was) and deciding I was going to be a real estate investor. Then I read a couple of books, which in my mind made me an expert. I remember a friend and I started looking at properties and when we talked a lady down from $225,000 to $210,000, we thought we were getting the deal of a lifetime.
Sadly, that’s true and just how naive I was about the business.
Over time I ended up investing heavily in my education by reading a lot more books, getting several mentors and purchasing more courses than I knew what to do with. It all worked out in the long run, because today I make a very comfortable living.
However, one of my early mistakes turned out to be the best thing that ever happened to me and helped me to be in the financial position I am today. So what was this mistake? It was buying too many properties too fast.
Once I started to get the hang out this business I started buying properties like crazy. I was buying them at good prices, and/or getting owner financing, but I grew to fast and was running around like a chicken with my head cut off, trying to manage everything.
But like I just mentioned, I think it was the best thing that ever happened to me. First off, most people are way too timid. They take years to build a real estate portfolio, when in reality, you can build a 10+-property portfolio in one year or less if you hustle.
Secondly, I believe in “baptism by fire.”
Purchasing so many properties so quickly forced me to refine and perfect my property management skills a lot faster than most folks. I had to quickly put systems in place so I didn’t lose my mind. Most importantly, my systems had to incorporate ruthless time management techniques so that I could still do deals and not spend all of my time dealing with my current properties.
Lastly, the secret to real wealth in real estate is by having long-term properties you never sell. And I still own many of those properties, which I initially purchased several years ago.
In short, remember fortune favors the bold. Don’t be so timid and take more risks. Go out and try and purchase as many properties this year as you can. (As long as you get a good deal.) Sure… you may have some growing pains, but in the long run it will make you rich.