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?
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.
You are reading this site because you are 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.
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. Market selection, property selection, funding, insurance, taxes, property management, etc.
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.
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.
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?