What Three Things I Learned From My First Residential Property Investment
My very first real estate deal was when I was 21 years old, as a result, I learned very quickly that real estate investing is a good career. I do however remember the fear of taking that first initial step like it was yesterday. Before that, there were times when fear would make me freeze. Fear can paralyze a lot of people from making decisions. Although this was a small residential single dwelling home, It seemed like all the money in the world to me. This was back in the day when we had to rely on information from friends and family for advice. The internet wasn’t even around at the time. It was pretty tricky finding any reliable source of information you could you trust.
Real estate also taught me how to keep my head up and plan things out in advance. If you’re not looking at least a few steps beyond where you are at the moment and planning each of those steps strategically, you can make some mistakes costing you a lot of money. The plan was to rent out that house. If I just got the right tenant, I thought everything would be perfect. Well, the first big eye-opener came when I wasn’t able to fill the home right away. I ended up covering payments on the house for about three months before I was able to find a tenant to rent it. I was also using all of my own money, so yes, this was a bit scary.
It wasn’t long before this process started to repeat itself. The tenant eventually moved out, and I struggled to find another tenant to fill the home putting me back in the position of covering the payments. I decided I needed to hedge my bets, so when another property became available, I sold the small home and put that money into a moderately sized location divided into three apartment allowing for three families. I wish I knew more about a short sale before I bought. It became exhilarating for me because if one moved out. I was still able to make all the payments.
This strategy allowed me to put some money away and build some Equity at the same time. As long as I had three families in this house, I was coming out ahead. Just reinforcing the fact this was a great career for me. By the time I was 23 I had three homes with nine families renting for me. I started to build on this winning formula. I set my sights on scaling these projects all the while keeping things as simple as possible. I wanted to see as many moving pieces as possible. If I allowed things get complicated, I found it just cost me more money and time.
Real estate will most certainly teach you how to overcome fear, but not only that, it will show you how to plan appropriately, how to face adversity, and it will also teach you how to problem solve your way out of issues and become a better person all around. Real estate also affects people in a positive way who are renting because it provides them a home and a place where their family could be together. Real estate has been a big piece of the economy ever since I can remember. There are fantastic resources available now unlike when I started out. You can learn many more aspect of real estate investing in a shorter period of time instead of learning from your own mistakes.