Part of pursuing your investment goals is understanding what achieving them will truly require.
Investing in real estate is one thing. Building wealth by investing in real estate is another. The first scenario is often a short term, one-off plan; the second represents a plan that has been well constructed and committed to paper, which constitutes a goal.
Set A Goal for Your Real Estate Investing
Then Have the Moxie to Pursue It!
Part of pursuing your investment goals is understanding what achieving them will truly require. Often, you are far closer than you think. For example, when individuals ask how to get started with turnkey real estate investments, many are surprised that the money needed to secure the investment may be far less than they had imagined. Then they kick themselves for not starting sooner. You certainly want to be educated about your investment strategy of choice, but do not spend so much time getting ready to invest that you never actually act. It would be a shame to put in all that work and never have investment property to show for it.
Here’s an example of how wise moxie has worked in my experience:
When I’m not speaking for Ziglar Inc., I work closely with rental property investors. I’ve noticed rental owners have nearly always found that investing moxie I’m describing. You can tell by these hallmarks:
- Rental owners are informed. They know what makes a market good for rental acquisition and which indicators will show it is time to sell for top dollar.
- Rental owners have clear plans. In my experience, the most successful investors have a strategy that takes them from acquisition to exit rather than stalling in the middle. For example, rental investors with momentum know how they are going to get a good deal on a property, to what extent they’ll improve it, the (realistic) rents it will bring, how and when they will sell it, and what they will do with the cash flow in the meantime and the profits upon sale.
And speaking of momentum…
- Rental owners have the moxie to demand growth. In my market, that means buying one rental in the right area, then allowing it to appreciate for three to five years (in most cases) and selling when appreciation levels out so that you can buy two more cash-flowing rentals in another neighborhood. That takes moxie, because it is not the “norm” for turnkey rental investing. Of course, that does not have to be your strategy in your market. The important thing is to have the guts to demand the growth.
Sometimes, growth can mean scaling upward, possibly from owning single-family rentals to also owning multifamily properties. There are some big benefits to be had with this strategy, including:
- Maintenance may be easier and more affordably managed
- Property management may be consolidated
- Some investors find the accounting process much simpler
Like any other growth-oriented strategy, multifamily investing is a big step that takes moxie. Have the strength of will to look at your own investment strategy, determine if you’ve reached a plateau, then go for the growth that is right for you!