Adults pretty much go about life knowing exactly what we are doing. No new languages, organic chemistry, or learning how to drive.
We can comfortably sit back and enjoy life in our own little bubble. Perfectly content. Or we can push our comfort zone, expand our skills, and strive for a different life than everyone else.
Ever see a kid learning how to ride a bike? What drives him to risk scraped knees and failure?
Investing in different areas of things such as stocks and property could help you to earn huge profits and set you up for the future. Many people have started to invest in German stocks such as “In Bitcoin investieren” which is an investment in Bitcoin, whilst others find it easier to invest in property. Whatever the investment with guidance and research it should offer you a large return.
The Benefits are Worth It
A bike represents freedom to a kid. You can go all over the whole neighborhood and hang out with the big kids.
Rental property investing represents freedom as well. Wherever you are investing in a rental, there is so much room to move around as much as you like without settling on a specific building for the rest of your life. You can look for your dream location before finding your “dream” home, you just have to know where you would like to look. There are homes for rent in Memphis, Pheonix, New Jersey and so many more, so hopefully, after you’ve read this page you can jump right in.
You are clearly interested in putting your money to work. Passive income so you can sit back and work because you want to, not because you have to. You are obviously motivated otherwise you wouldn’t be here.
We’ve looked at the projected Impressive Returns. We’ve looked at my Actual Results after 4.5 years.
So what comes next?
Start Simple, Manage Expectations
As adults, we are kind of babies.
We have leveled up our lives in so many areas, it is embarrassing to be a beginner in another area. “I’m the CEO of a multi-million dollar company, I can’t look like a fool in front of everyone at a beginning yoga class.” That’s a good way to stop improving.
Or maybe we have unrealistic expectations. “I’m a quick learner, in 1 month I’ll be as good as the yoga instructor.” Only to quit when the progress isn’t that fast.
Constantly remind yourself it is a worthwhile long-term goal. Don’t be afraid to be a beginner and don’t quit because progress is slow.
The Beginner’s Mindset in Rental Property Investing
Applying this thinking to rental property investing, the obvious place to start is by learning.
Learn enough but not too much
You have to learn the basics of how it all works. This involves boosting your understanding of market selection, property selection, funding, insurance, taxes, and of course, property management.
Accordingly, if you would like to learn more about the potential advantages of working with a company that specializes in property management jacksonville fl is home to some fantastic real estate management experts that will be more than happy to provide the support that you need.
Above all, you don’t need a master’s degree in any one of those areas. Just learn enough to be able to ask the right questions. Plus, you can always outsource your property management responsibilities to a property management company, so do not let these responsibilities dampen your property investment dreams.
Take a simple action
The reason why you don’t want to learn too much is it will hold you up from actually taking action. The action is required for the benefits.
Back to the yoga example, you don’t need to read the latest studies on biomechanics to get the results. You just need to take action on the basics.
Keep it simple so the action isn’t too daunting.
Protect downside while learning
The kid learning to ride a bike has training wheels when he first starts out. He isn’t reading a book about how to ride a bike, he is taking action similar to his goal, but with downside protection.
Then maybe later his dad runs along side the bike, able to help if anything goes wrong. It’s another step in the right direction with downside protection.
Rental Property Beginners
Keep in mind the long-term goal, the benefits of achieving it, and get started.
If your goal is to reach the passive income of rental properties, a REIT won’t help you learn. Buying a fraction of someone else’s deal isn’t likely to help you learn. You have to go out there and do it yourself. Of course, have your Investment Accountant take a look at your accounts first to ensure you can actually afford to go it alone but your accountant will be able to provide you with the best advice.
I like turnkey rentals as a way to keep it simple when starting out. I’m just a beginner and started there. Later on I can level up if I want by learning more and taking on more responsibility.
I like properties that are $90-100k so they only require an investment of roughly $22k and are likely to have stable tenants.
I like purchasing through large-scale companies with a decade long reputation to maintain as a way to protect my downside.
That’s how I’ve made it past the hardest part – buying rental property #1.
There are a million ways to be a real estate investor, but if you aren’t getting started, maybe it is time to reevaluate your approach.
What is holding you back?
You are so right! It is super uncomfortable to first start out, but it’s a necessary discomfort. I remember feeling okay about the process until our first tenant moved out. Then I was thinking “oh crap. I have to prepare a statement of cleaning and repair charges and return the rest of their security deposit. What the heck should that look like?”
I created a form from scratch and sent it to the tenant, but there was a mistake on it. He noticed it, so I went in and revised the numbers to fix it. He was ticked off about it, and said “are you just winging this, and making it up as you go along?” I was thinking “yep.”
It’s tough at first, but if you can just stumble your way through the awkwardness in the beginning, it’s so rewarding.
Excellent example! Fake it till you make it really does work.
I don’t want to encourage people to take unnecessary risks, but if you wait until you are 100% positive how everything works, you waited too long.
“I don’t want to encourage people to take unnecessary risks, but if you wait until you are 100% positive how everything works, you waited too long.”
Exactly. Very wise words. 🙂 Great post, Brian!
Love the featured photo in your post and the content. The bike analogy is precious. I’m in my 40’s and when I was a kid a bike meant owning everything. I could ride anywhere in my city limits 🙂
Thanks! Freedom is a hard thing to wrap your head around – I think analogies help us understand it better.
What did you mean by “purchasing through large scale companies” do you mean real estate agencies or something else?
I have purchased both of my properties through a national turnkey marketing network that moves hundreds of properties a year. The one I used is Jason Hartman and I’ve also heard good things about Norada.
They have scale and reputation to maintain. The same “large scale” principle applies even if you don’t go through a marketing network. You want a company who has been in business a long time and does 50+ properties a year, not a new turnkey company who might only do 8 deals a year. You might pay slightly more, but the risk of getting a complete dud goes way down.
Brian-How does Jason Hartman make their money? Are they a management company too?
They get referral fees when investors buy a property. I’m not exactly sure of the numbers, but think it is around $3-5k. The model is such that they want repeat buyers, not to collect a one-time huge fee.
Jason Hartman’s company doesn’t do management, that is usually provided by the local turnkey company that investors are referred to. Or of course you are free to find your own management.