STOP Making These Deadly Investing Errors

Let's talk about probably one of the biggest mistakes real estate investors make, and it really is going down the wrong path out of the gate. I think a lot of people are interested in real estate. I think a lot of people not sure how to get into real estate. They think that they can't get into real estate because of whatever reason, maybe knowledge, maybe because they. They think that they have to have a bunch of money to be able to buy something outright. They don't understand the mechanics of real estate. And so what happens is, if you're really serious about real estate and learning a little bit more about it so that you can understand how people are building wealth, then you end up going down a path of how do I get started? So that's where do I start? Right. And as you answer that question, you start realizing that, okay, well, I could become a realtor, which is the path that we took. Yes. And then it could be, I could be an investor, but that means I'm going to probably buy a rental property. Buy and hold is probably the most common thing saying taught when you're talking about real estate investing or the brrr method or something like that. Those are the easier to understand ways to get into real estate, especially if you're a busy professional. And we use the term busy professional simply because most of the people that want to get in real estate and build their wealth are doctors, lawyers, entrepreneurs, business owners, high income earners like you. You've gotten yourself into a position where you absolutely love what you do. Mm. You're really good at what you do. You understand, hey, but you know, what do I do with all this money? I've got all this active income, and at some point in time I'm gonna want to retire. And what do I do so that I can be growing this income in a safe way? And I don't understand real estate. I don't understand necessarily stocks and mutual funds and things like that, but yet so many people invest in that. So many people put their money in the bank and they have no idea what the bank's doing with their money. Right. Reality is, is that wherever you put your money, it's being used. And you probably have a lack of understanding of exactly what it's being used for. And so our admonishment, I guess, at the beginning of this episode really is not to be afraid of real estate. Yes. Because it's like anything else. You should be afraid of stocks and all of the things where you're putting your money and you don't know exactly what's going on and where it's being used and what type of return you're getting, what your risks are, do you have true wealth preservation? Is it safe? Is there a safer alternative? And what is the comparison on your return on investment? What type of tax implications are there based on where you're investing? Are you actually adding to your tax burden or are you reducing your tax burden? There's so many questions that people don't know that they should be asking at the very, very beginning. So now we go and start talking about this particular topic and tell you what, what we say you should be doing. And that is answering the questions of where do I start, which path is right for me and who do I trust? And as one of our investors recently said, you should really ask those questions in the reverse order. So really ask, who do you trust? Because reality is investing in real estate is not easy. You will lose money. And even as much experience that Flip and I have and the team that we have and all the safeguards that we've put in place because of the mistakes that we've made and the lessons that we've learned and the processes we put so that we don't make those mistakes again, we still lose money on deals. It's just reality. We tell our investors this is reality. It's why we do volume, because we are mitigating our risk by doing 10 deals, knowing that maybe two of them are going to lose money and the other eight are going to be fantastic. So if eight are fantastic and only two lose money, we're good. Like, we're in the plus side of things. So if you're not mitigating risk in that way, you have to go into this knowing, hey, I'm going to lose some money at some point in time. It's just, where, where is it? And was that time away from my family and that extra work and the extra stress worth the learning curve that it takes in real estate when experienced people like us who have been in it for 15ish years are still, are saying, we still make mistakes. So knowing and understanding that reality, because you're going to see on Facebook and you're going to see on the Internet and you're going to, you're going to hear ads of, hey, become a wholesaler, become a fix and flipper, you're going to make thousands of dollars, you're going to make millions of dollars. You're going to become, you're going to reach all of your dreams. And they don't tell you about the hard roads. They don't tell you about the lost money. They don't tell you how long it's going to take for you to get your first deal. They don't tell you of that. And so, so many people are chasing this active real estate role when all they really could be doing is taking that money that they're investing in these courses and actually investing passively and earning money that way and then getting to enjoy life. Because that's what we all want, right? We just want to enjoy life.