Why I Should Have Invested 20 Years Ago… REGRETS!
Why I Should Have Invested 20 Years Ago…
Today is a great time to get started as a real estate investor. The best time to buy a house was 20 years ago or today. That's it! Real estate is continuing to be a great asset. It goes up, it goes down, just like any other investment. The Federal Reserve inflation rate target is 2%. This means your money will be worth 20% less after 10 years! It all comes down to knowledge. I think we're on the verge of a transaction slowdown and minor correction coming up soon, but that's okay!
Because there are creative ways where you can still buy real estate to:
Get cash flow
Get the tax advantages
Build generational wealth
Strategies To Get To My First Apartment Building… and The Next!
I've done over 45 deals from fixing flips, buying foreclosures as personal residences, foreclosures, rentals, multifamily, and a couple of wholesales when we get deals that don't fit our “Buy Box”. The first apartment building we purchased back in 2020 was in Panama City, Florida. We just went full cycle with it, completing our refinance last month, August 2022. We purchased it for $1,050,000, added about $75k in CAPEX, and refinanced it with a new value of $1.76M in only 2 years! We were able to cash out over $400k after only investing $210k in our upfront down payment.
Currently, we are closing on a 40-unit in Montgomery, Alabama in less than a week with another 56 units under contract next door to the property. Both deals came from one of my coaching clients taking action and executing my marketing strategies. So I know you guys can do this! This is definitely possible!
He came to my coaching program in January. He did a fix and flip and started networking with brokers. Now next thing you know, he's got 40 units under contract. We put a joint venture deal together with a couple of investors in my network to purchase this one. There is no excuse for anyone to accomplish whatever they want out of life and get going with real estate investing.
What They Forgot To Teach In School
I didn't come from a wealthy background. I grew up in the South…LA…Lower Alabama. When I graduated from college, I didn't have a strong financial background. I was an electrical engineer. I took a few business classes - microeconomics, and macroeconomics, and that was really it. I didn't take any finance or any accounting, or other things like that. But I'm a true proponent of the need for those types of foundational classes, to be in business. As an entrepreneur, it helps if you know about finance, accounting, and taxes. All those things, I had to learn by myself outside of college. That was the whole reason why I wrote my book that came out this year, “Millionaire Real Estate Success Strategies: What They Forgot To Teach You In School”. We’re simply not taught about these topics or how to think about how to add value to the world. Everybody needs shelter, everyone needs a house to live in. And guess what? We go to school for 12 years, and they don't even teach us how to buy a house. How's that not fundamental?
I wanted to share what I have learned through my investing journey and more so how to go and do that smartly (avoiding the mistakes I have made). All the other stuff that they teach us in school about state history, chemistry, periodic tables, geometry, etc. doesn't put food on the table. We'll probably never use that for the rest of our lives. But they won't tell us the basics on how to buy a house, how interest rates work, how the stock market works, all those types of things that we can use for the rest of our lives to build wealth - where's that? I'm not gonna say it's on purpose, but more can be done!
How Millionaires Were Made Over Time
I came from a humble background and just got it out of books, seminars, and networking with other investors, and other entrepreneurs that were hungry and looking to better their lives. It's all about building generational wealth. The Bible says: “A wise man is one that leaves an inheritance for his kids”. - and that's truly where we're at. What I'm looking to do is to leave an inheritance for my grandkids.
There are a lot of decisions to make and a lot of different options out there. That was the real reason why I chose real estate so that I can buy distressed assets, which has proven to make a lot of millionaires over time. Think about it. I can pay somebody to come in and pay my mortgage for me to pay my debt down. So, I can be in a position where I have appreciation on the back end when the value goes up over time. I have another blog that talks about how to get started in real estate. So check that one out, if you're interested to see the key principles and steps that you need to get started in real estate.
