364: Just Do It!

November 22, 2019bmanasseroUncategorizedNo comments

SHOW NOTES FOR EPISODE 364: JUST DO IT!

Tip of the day: FIVERR.com

One of the most difficult things for new real estate investors is just taking that first step – making that first purchase. In today’s podcast, Bill shares how he made his first purchase and explores some of the common obstacles many new investors encounter that prevent them from investing and how you can overcome those challenges.

Introduction

Sometimes taking that first step is the toughest part of real estate investing. Many investors have struggled with their first purchase. We’ve had multiple very successful real estate investors on this podcast that have stuggled with those same anxieties.

Are you one of those people who has done all the reading, research, listened to the podcasts, watched the YouTube channels, done the webinars but is still struggling with that first step?

Doesn’t just apply to first Purchase. Could be…

Second purchase
Big Step from SFRs to Apartments or mobile home parks, etc

Why are people so hesitant?

Fear
- Of the unknown
- Of failure
- of making mistakes
Risks
- Lose money
- Get sued
Can I get a better return somewhere else
Long distance investing
Don’t want to be a landlord – Heard other people’s horror stories
Waiting for the perfect deal
Lack of experience
Property value decline (recession coming)
I won’t be able to find the deals
Not sure I can tell a good deal from a bad deal
I don’t have a mentor

Top 5 Most Common Barriers to Entry

I don’t have the money – See episode #194
I don’t have the time (I’m too busy) – See episode #228
I don’t have the knowledge – see episode #174
I don’t have the confidence
I’m scared or afraid of the unknown

I could give you a ton of real life stories – in fact, I will include some of those stories at the end of today’s show notes – of at least some of my favorite podcast episodes of people who have overcome fears and excuses, who started, in some cases, with nothing, and grew their real estate business into a multimillion dollar enterprise – a cash flowing machine!

My Story

I wasn’t looking to get started in real estate.

Why I was able to make my first investments

I was living in Haiti at the time
Not everyone will have the advantage of have a big check show up
I was heavily vested in the stock market and within my IRA
Looked at gold, franchises, etc.
I wanted to diversify
I researched it like I would any investment
- Checking out a potential new stock
- Or evaluate index fund or mutual fund
Read some books
Did research on markets
Found out about turn-key properties
Hopped on a plane from Port-au-Prince, flew to Atlanta, flew to Memphis and came back with 3 properties – 2 SFRs and one duplex
The following month I started getting income
I think the reason it was so easy for me was because I didn’t view buying rental properties any different than stocks or bonds – it was just another investment
Now, that’s not really the best way to invest but there is some truth to the fact that we SHOULD think of real estate investing as another investment

There are some steps every investor should take and I outline those things in podcast episode #006

Reflecting back, I don’t regret the decision. Sure I made mistakes — lots of them! But I’ve learned too and I’m getting better at what I do everyday.

But once you’ve done the preliminary steps, you need to JUST DO IT!

And if you find yourself battling fears, doubts or analysis paralysis, stop looking at the negatives and just look at some of the reasons you thought of investing in real estate in the first place.

You can start with this…

14 Reasons Why Real Estate Investing is Great for Retirement?

You don’t have to work full-time. Most of us don’t want to keep working or find more work when we retire. We want to enjoy our retirement years. Whether you are approaching retirement or already there, the great thing about real estate investing is you can do it part-time or invest as little as a few hours per week – depending on your goals. Once you set up your “money making machine” it continues to produce whether you do anything or not.
It’s a relatively safe investment. The market can go down but almost always rebounds, and unlike stocks, you own a tangible asset, the land – something of value that you can see and touch.
You already know the basics. If you’ve purchased your own home, you have a basic understanding of how real estate works.
Upfront costs can be minimal. You can purchase a property with little or no money down. You can also invest in a REIT or other investment property with a few thousand dollars or less.
Your money goes a long way. In real estate you can use leverage to control more assets. In the stock market $30,000 can control $60,000 of stock. In real estate, the same $30,000 can control $150,000 or more of real estate. Leverage is important. A small increase in the value, over the years can will double your equity.
Income is steady. With a rental property, you get paid regularly from the start and on a regular basis. If you own rentals, you’ll receive monthly income. If you are an investor in someone else’s property, you’ll generally get paid quarterly. You get to keep more of your income than you would with stock market dividends because of the tax write-offs.
You can give yourself a raise. When you increase rents, your monthly income increases and so does your equity.
You get bonuses. And if the property is sold, you’ll get equity income on top of your monthly or quarterly income. If you syndicate you get acquisition fees just for finding the property.
Tax advantages. You benefit from tax advantages at tax time and equity when you sell. Your income is offset by depreciation, expense deductions and more.
You can work from home. You can set your own hours and work as much or as little as you want. You can do 90 percent of your work on the computer or telephone.
You can avoid capital gains. When it comes time to sell your investment property, real estate has a big advantage over the stock market. In the stock market a long term gain is taxed at 15 to 20% depending on your income. In real estate a capital gain is untaxed for the first $500,000 (a husband and wife each get a $250,000 exemption. Then there are 1031 exchanges in which you can sell a property and buy another of equal or greater value, and not pay taxes on the sale for many years later, if at all.
You can be the bank. Once you start generating lots of cash, you can also be a resource for other investors that may have trouble obtaining a loan for various reasons (too many properties, lack of experience, etc.). As an investor can loan money to other real estate investors funding the purchase and the rehabilitation and receive a very high income, as well as participation in the profits.
Politicians love real estate. They find new ways to make financing available. Some mortgage lenders are encouraged to provide loans with zero to 3% down payments. There is even a program called FHA 203(k) loan. It enables homebuyers and homeowners to finance both the purchase or refinancing of a house and the cost of its rehabilitation, through a single mortgage or to finance the rehabilitation of their existing home.
Can leave a legacy. You have something to leave your children. You reap the benefits of the great cash flow during your retirements. And when you leave this world, you leave a wonderful legacy behind for your children and grandchildren. What better gift to leave to the ones you love.

If you are looking to “fill the gap” in your retirement budget, reap a great return on your investment, generate a strong monthly passive cash flow, increase your net worth and leave a legacy for your children and grandchildren, real estate investing is tough to beat.

How to Move Forward

As mentioned above, there are a variety of fears that can hinder you from taking action. While there are certain fears that are healthy, in business, fear can limit your ability to make an impact. In the pursuit of financial freedom and flexibility, fear will always be present. It’s often just an issue of mindset. Instead of just thinking about the negatives, think of the benefits that could result — like the list I just read. Also, listen to some of the podcasts I’ve listed below about people who have overcame their fears or lack of money to become extremely successful in real estate investing.

Take the time to read the above list on why YOU SHOULD invest in real estate when you need a boost.

Taking action and control of your mindset is the first step – the rest will fall in line!

Some Encouraging Podcasts About People Who Overcame Obstacles to Become Successful in Real Estate Investing

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

bmanassero

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