You know all those quotes that arbitrarily divide people into two groups?
There are two types of people in the business community: those who produce results and those who give you reasons why they didn’t.-Peter Drucker
There are basically two types of people. People who accomplish things and people who claim to have accomplished things. The first group is less crowded.-Mark Twain
There are two kinds of people in the world. Those who walk into a room and say, ‘there you are’ and those who say, ‘here I am!’-Abigail Van Buren
Well I’m about to create one of my own!
The Rental Mindset Quote
There are two types of real estate investors. Those who own property and those who claim they are waiting for the right deal.-Brian at Rental Mindset [Tweet It!]
There is no perfect deal. Real estate is a messy game.
There are so many different ways you can go about it, from flipping to wholesaling to AirBnb rentals to syndicated apartments to turnkey single family homes.
Too often someone who has done zero deals wants to do it all. They read all about AirBnb rentals and have never missed an episode of Flip That House. But they don’t end up doing either.
Too often they want to go straight to the big leagues, not realizing they have a lot to learn in the minor leagues first.
When you break it down, two thirds of people are pretenders. They have never made it over the first obstacle and made their first deal.
How Do You Go From Pretender to Contender?
I bet everyone on this website, who doesn’t already own a property, hopes to one day. Let’s call it a goal.
Just because I have already done it, I am not going to trivialize it and say it is easy. It is a huge jump, going from never doing it before to writing a massive check.
Huge goals are rarely accomplished. Remember how you were going to go to the gym an hour a day? It seemed so daunting you didn’t even go for 10 minutes. You made up some reason why you didn’t have time today.
The people who know the most about goals and habits say to take baby steps. Start with a tiny habit.
If you want to floss daily for 2 minutes and currently don’t floss at all, you are going to fail miserably if you try to rely on willpower at the end of the day.
Set the goal of flossing one tooth gap, which might only take 5 seconds. Feel proud of the accomplishment and keep going if you want, but you don’t have to. Once that is a habit, you can slowly increase towards your original 2 minute goal.
Apply This Thinking to Rental Property Investing
How can you break down the huge goal of rental property investing to something much smaller?
Unfortunately you can’t start with just 5% of a deal to achieve the benefits of learning and habit forming. There are deals broken into increments (REITS, syndication, crowdfunding) but you aren’t really involved, so aren’t really advancing as a real estate investor.
Instead, what is the most approachable deal you can do on your own?
This pointed me to turnkey properties, where someone else does the purchase and rehab, then sells the finished product to an investor.
For others who live in an area with good rental income, they come to a different conclusion on the easiest place to start. They purchase a home to live in, with the intention of moving out within a couple years and keeping it as a rental.
Others buy a duplex, live in half and rent out the other half.
What is easiest for you?
Later You Can Up Your Game
Focus for now. Don’t worry that other people are crushing it in various ways investing in real estate. Just worry about step one, but realize someday you’ll be ready for step two.
I don’t know what step two is yet for me and I already have two rental properties. That is ok. For now I’m going to keep going with my current way of doing things, but slowly research the next thing.
I am getting to know the creators of rental property websites like OB at Out of State Investor. He sources and oversees the rehabs for his deals to save big on the purchase price compared to me.
Alex at Cash Flow Diaries started with turnkey, but just moved to Indianapolis which will allow him to become a more hands on investor.
Eric Bowlin is a young full-time investor and did things like become a licensed contractor to learn the business inside and out.
Check out what they are doing, and if it resonates with you, set it as a long-term goal. Same with me – if you look at me and think I’m crushing it and you’ll never be where I am, use it as motivation.
Remember to start small. You can always take on more work later.
What tiny step can you take in the next week?