Mindset

I cannot remember the books I’ve read any more than the meals I have eaten; even so, they have made me.
Ralph Waldo Emerson

What a quote from Old Waldo, as he’s called in Seabiscuit.

I have to agree with the sentiment – the books you read shape the way you view the world.

But personally I know the books I’ve read. I’ve diligently kept a list for almost ten years now!

My Influences

I posted a new page to the website – go take a look at what I’ve been reading recently. (It’s a work in progress, there are a ton of books to format nicely.)

A book a month over a decade is a ton of learning. Example entry for those who don’t click to the actual page:

Flags of Our Fathers: Heroes of Iwo Jima
James Bradley
August 2017

Brian’s thoughts: Powerful story of the WW2 Pacific battles told through the lives of the flag raisers in the famous photo. I think the Japanese aspect of WW2 is fascinating and underappreciated due to all the Nazi focus.

Someone out there on the internet: “But wait a minute – there’s nothing about real estate investing there! I thought that was a huge interest and what you spend all your time thinking about!”

Nope. Investing in rental properties is a means to an end. I think more people should consider it, but I do it as passively as possible, it barely occupies my thoughts through a typical week.

But there is one real estate book that I read way back in high school and has had a lasting impact:

Why Books? I Learn Other Ways

I’ve heard plenty of arguments for why books are no longer relevant and people can learn in other ways. Check out this quote from The Shallows: What the Internet Is Doing to Our Brains:

For some people, the very idea of reading a book has come to seem old-fashioned, maybe even a little silly – like sewing your own shirts or butchering your own meat. “I don’t read books,” says Joe O’Shea, a former president of the student body at Florida State University and a 2008 recipient of a Rhodes Scholarship. “I go to Google, and I can absorb relevant information quickly.” O’Shea, a philosophy major, doesn’t see a reason to plow through chapters of text when it takes a minute or two to cherry-pick the pertinent passages using Google Book Search.

What’s sad is the quote is from a philosophy major. Philosophy! With big ideas and lots of nuance, not simply facts. Come on guy!

I’m not buying into the idea you just need the bullet points of a book – even non-fiction. You have to sit with the idea for a long time and view it from many different angles. Then and only then will it sink in and actually influence the way you view the world.

Think of it as a wavelength for impacting your brain. Books are very low frequency and penetrating. They are low bandwidth but leave a lasting impact. High frequency bullet points and summaries are exciting and noteworthy, but often hit the surface of your brain and bounce off.

Plus, thanks to the Amazon Kindle and other types of e-readers, there really are no excuses for not getting stuck into a book. Personally, I always seem to be ordering new books from Amazon. There’s a certain charm when it comes to buying books. It feels equally weird and fun to smell new books and mark the pages with a book marker (you could buy them from https://serp.co/best/book-markers/ or other similar sites) so that you don’t forget up until where you’ve read. Moreover, I like to read a combination of old-fashioned printed books and modern eBooks.

Whenever I place an Amazon order, there is almost always a book that gets added to my basket at some point! Do you order your books from Amazon? If so, you should definitely check out the website for Raise. Their website is filled with useful promo codes and coupons that you can use to secure a discount on your next order.

Above all, I suppose what I am trying to say is that it does not matter if you prefer to purchase paper books or eBooks, as long as you are reading a book of some description, you can keep your brain busy. If you’re in need of something new to read, then you can head over to this website https://likewise.com/books to find plenty of great recommendations.

Also Learn Other Ways

I’ve learned about real estate investing through passive education (podcasts, books), active education (meetups, seminars), and hands-on education (making the leap and learning on the way).

Obviously I’m pro learning from blogs too.

Just don’t think all those other ways are replacement for books. They should be in addition!

How About You?

You are on the internet seeking knowledge – do you read books? What’s the per year pace that you’ve found works for you?

Do you buy that reading is a different than other types of learning?

After taking a look at what I’ve read, any recommendations for me?

You know that movie “He’s Just Not That Into You”?

Well this website is about to turn into “He’s Just Not That Into Real Estate”.

Don’t worry, I still believe it is a phenomenal investment and the best way to build wealth for anyone young with enough time to be patient. Of course, those with little knowledge in this field can take the help of experienced advisors and Michael Teys seems to be a fine example, but the person has to be immensely patient to be able to see the growth.

That being said, after a couple of months without a new article, it’s time to reevaluate the direction of this website and how I can best help people like you!

What I Originally Thought

Back in January 2016 when I started working on Rental Mindset in earnest …not this Ernest…

Here was my thinking:

• I believe through my own research and experience that rental properties are a really powerful way to build wealth.

• I believe most people don’t really know it is an option for them. It’s not for everyone, but it should at least be considered. Through sharing my own experience, there is the potential to have a big impact on a few people’s lives.

• So I’ll use an easy website builder to start getting my thoughts out there. Then in about 9 months when I actually start adding more properties, there will be a lot to write about “live” and already a small audience. At that time I can look to increase your website speed as the viewership increases.

What Actually Happened

Fast forward to September 2017 and I feel the need to rethink things.

Maybe the desire to rethink came from a Jedi mind trick? Regardless, here is my new thinking:

• I still believe through my own research and experience that rental properties are a really powerful way to build wealthgiven that the rental property is in a good condition. For instance, if the roofs, doors, windows, basement, and foundation of the house are in good shape and health, then there is a good chance that the property owner will be in profit. However, if, for example, the foundation of the house is not in a good condition (and seems to be in an urgent need of repairs from firms like Helitech which is known to foundation repair in Columbia or similar locations), then is possible that the owner would get less value for the property.

• Anyway, I still believe most people don’t really know it (rental property) is an option for them. It’s not for everyone, but it should at least be considered. Through sharing my own experience, there is the potential to have a big impact on a few people’s lives.

• I have a website with a lot of thoughts out there and a growing audience. The actions I made on my portfolio and wrote about so far are purchasing an umbrella insurance policy, cash out refinance on property #1, and putting property #3 under contract.

• The “here is what I did”, how-to articles are my least favorite to write. And even though there has been some action, there really isn’t enough to have it be a major focal point or differentiator from other information out there. The biggest impact has been actual conversations with people, not one way information posts. From now on, this will be my focus.

Actual Conversations

Comments on articles are the conversations that people see. But no matter how enticing I make it, many readers will never leave a comment. It is just not something they do.

One way these people interact is the contact form. Better yet is signing up for the email list and replying directly to me (that way I know they are in the club and not a first time visitor).

I’ve been surprised by my real life friends wanting to discuss real estate investing now as well. They knew I had a couple rental properties, and even before this website could have asked my about them, but didn’t. If I can positively impact my friend’s financial lives, that is a huge win (although I am a little concerned that market timing has the potential for them to have a bad experience and not stick with it).

There have also been conversations with people I previously didn’t know over the phone, email, Skype, and in person. I’ve found many of these to be high impact as well.

What’s This All Mean?

There are going to be several changes to Rental Mindset moving forward:

• More “Why” and big thinking articles (broadening into general finance and self-improvement, not just rental property investing), less “How To” and “Here’s What Happened”
• Cover the “Here’s What Happened” with a short monthly update
• Get my face and personality out there more so people can decide “yes, this is someone I’d be interested in talking to” or not
• Get people on the email list to be “in the club” and connect directly with those people (over email, phone, video chat)
• When one-on-one becomes too much, figure out groups, webinars, masterminds, etc.

Here’s How You Can Help

Would you be interested in being a part of a community?

Interfacing with actual people on a regular basis around a set focus, that’s how you can steadily advance your goals.

Let me know the type of people you think would be most valuable to connect with – investors in a similar position or people who are a few steps ahead of you. I’ll start working that into the long-term plans for Rental Mindset.

Not a comment person? Shoot an email to Brian @ the website name.

Let’s get to know each other a bit better and I’ll do my best to help you move your goals forward, whether property #1 or way beyond.

Do you know anyone who let’s the smallest little problem go on for weeks?

Rather than just fixing it and moving on, they keep complaining about it every time you see them.

“Yes Aunt Linda, you already told me about your squeaky door. Would you like me to go down to the store and get some WD-40?”

Then they don’t accept help or even advice. It is almost like there needs to be something in their life to complain about. If they quickly fixed the issue, they’d just have to identify some other problem to fixate on.

Money is often the focal point.

When you get right down to it, money is just another problem that needs to be solved.

How Most People Think About Money

Money comes in, money goes out.

Two parts of the equation, yet most don’t think of it that way. Spending gets the majority of the focus.

There is only so much that can be cut. It takes money to live, even if you are able to eliminate thinking like “I work hard so I deserve this new iPhone”.

The other end of the equation has no limit – the money coming in.

The average person believes they earn what they earn and that is that. Maybe they work a retail job and get paid a set hourly wage. Not much can be done right? Well, that doesn’t have to be the case! Plenty of people have a side hustle that brings in another income. Whether it’s using the best survey sites to participate in paid surveys or simply selling old belongings, any income is still an income.

If You Think About Money Differently…

If you treat money as just another problem to be solved, you will be able to think outside the box.

You’ll know spending isn’t the only variable that can be tweaked (although it is still important). Income can be changed as well.

Let’s take a look at a profession with an extremely fixed pay scale: teachers.

A teacher knows exactly what they will make not only this year, but 10 years from now. It is set in stone, based on their education and years of experience.

A small side hustle can have a big impact on the money problem. Not able to save even 10% of your income? How much extra work will it take to earn 10% more?

It doesn’t have to be an extra job. It can fit into your schedule.

When driving for Uber or Lyft there is an option to set where you are driving and pick up riders going the same way. You could do one ride on your way to work and one home. Or on the weekend when you are heading to the next town over to meet a friend.

It can be a hobby you enjoy doing. Love ugly Christmas sweaters? Make them year round to sell on Etsy or eBay during the holidays when all the hipsters wish to one-up their hipster friends. Alternatively, just sell any of your old belongings you no longer want; there’s a buyer for pretty much anything out there. Try classifieds sites like LeoList first, then maybe you could move on to building your own e-commerce platform.

If you like working with wood, make anything out of a wine barrel, rich people love that stuff.

Or it can be running your own small business that utilizes your skills. Tutoring, summer classes or camps, or anything to do with weddings (where prices have absolutely no reasonable boundaries).

Also, did you know that you can even get paid for surveys, lots of websites provide a service where you give your opinions in exchange for money! Yes, it is that easy! For example, if you use a particular business and have a bad or good experience then writing about it in a survey and getting paid for it seems like a no-brainer.

Once you start thinking of money as just a problem to be solved, the possibilities are endless.

Gateway to Passive Income

Passive income is the ultimate fantasy. Do something now and money just keeps coming in? Wow!

Don’t start with passive income first, it is a graduate level course. Get rich quick schemes will be a waste of your time.

Once you have some savings piling up, you can put it to work for you.

The default option is in stock market index funds. But there is a disconnect there. Yes, it may go up, but do you make the connection of your money earning more money?

My recommended way to get into passive income is purchasing a rental property. It is tangible and easy to understand.

You pay $20k for the property up front, the tenant gives you $1k a month, and you cover all expenses including hiring a property manager (around $800 a month total). These are actual numbers that are attainable no matter where you live.

No magic. You live in a house or an apartment and understand how renting or a mortgage works already. The tenant applies for the property, they go through checks like the apartment credit check, then either get accepted or rejected. It’s not hard. Housing is something everyone needs.

Once you have experience making your money work for you, you’ll see opportunities all around you. Vending machines, truck rentals, expensive equipment rental.

Before you know it you’ll be ready for the graduate level passive income course. And financially free.

It All Comes Back to Mindset

Think of money as a problem to be solved to unlock more solutions. Get a side hustle to control the income side of the equation.

Think of passive income as putting your money to work for you. Get a rental property to see it in action and prove it is possible.

How have you shifted your mindset about money?