So you want to be a real estate investor, huh? The thing that makes you a real estate investor versus a homebuyer is your mentality. Investors realize that real estate is just another asset class, like cryptocurrencies, commodities, stocks, and business.
Knowing that real estate is a means to an end lets investors make business-based decisions. For example, if adding a $5,000 rain shower makes no business sense, an investor will not perform this upgrade.
A homebuyer WANTS the rain shower, so they do this upgrade based on emotions and personal comfort. So even if you are a homebuyer purchasing your first house, you can still make decisions like an advanced real estate investor.
Are You Retiring TO Something or FROM Something?
Don’t forget to check out the other two articles in the series (beginner, intermediate) before proceeding forward. Becoming an advanced real estate investor starts with thinking like other investors, whether real estate or otherwise.
I just finished the best book I have read outside of Robert Kiyosakis’ books. The book title is “Buy, Rehab Rent, Refinance, Repeat,” or BRRRR, and it is about real estate investing. The book breaks down each step in great detail, giving the reader an immense amount of tips and information.
However, I wouldn’t read this book before reading some others first. BRRRR has so much good information that your mind has to be ready to receive it prior. In its rawest form, the book is a businessperson’s guide to real estate.
The author, Davide Greene, repeatedly says that adding value to other real estate team members is the best way to grow your business. I am a firm believer in adding value as a way to achieve business success. I did not know any of this until I read certain books.
The first book I read about adding value as an entrepreneur is “Superfans.” I began to understand the true value of what an entrepreneur brings to the table. An entrepreneur’s job is to solve other people’s problems at a profit.
Nobody Owes You Anything
Another great book on adding value first is “Content, Inc.” This book delves into the world of creating content and growing an audience well before you launch a product. For example, if you plan on releasing a cleaning product, you would first start a YouTube channel about cleaning your house smartly.
The world of real estate is similar to other investments; you must add value as well. When my wife and I began to rent rooms in our current primary residence, we added huge refrigerators, HBO, cable, and new mattresses. Our roommates have been with us for almost two years because they find value in staying with us.
As we move into the real estate investor phase of our careers, it is important to understand we do not need to own a massive amount of homes. There are other ways to earn rental income outside of renting homes.
Success is a Habit: What Is Your Daily Routine?
My wife and I just looked at house #4, and we were surprised at how far we have come in our real estate journey. Since the house will be a mobile home, coming from the factory, we can make decisions favorable for renting rooms.
Some of these decisions include removing the carpet and adding external doors to the master bedrooms. These decisions will pay dividends when it comes to increasing the asking price of the rooms. We know that the roommates will find great value in having an external door to their room. See the theme here.
As an investor, sometimes buying land will be the best bet, depending on the situation. We can do so much with raw land that it needs to be a priority to understand the possibilities. I try to write as much as I can about land because we have two homes with three acres apiece.
A couple of possibilities include adding RV hookups or RV vehicles to your land and renting the space or RVs. This can be pretty lucrative in the long run. Another idea is renting your space to beekeepers and those who produce honey. Other beneficial insects need a home, such as mealworms and butterflies. Hey, insects need loving too.
The best part of being an advanced real estate investor is knowing that you don’t need to partner with strangers—that is why we have a family. Indeed, the best way for a young person to buy a home is with the assistance of family members.
Big Money in Tiny Homes
But, as an investor, this can work in our favor. Why not buy a property and rent it to our children. Your home will get trashed anyway; it may as well be your kids doing the trashing—just kidding. But, I am a HUGE fan of adult children, being productive, and living at home.
My wife and I proved that by renting rooms, you could break the universe. The older gentlemen selling mobile homes asked us if we had $50,000 for the down payment. I replied that we have close to $200,000. He was shocked and said, “Are you all looking to adopt someone?”
That is the power of living below your means, paying off debt, and reading books. When we go into a real estate venture, we don’t NEED it to work out. It only comes to fruition if it satisfies the needs of all parties. I can care less if we get house number four. We have already learned so much about mobile homes in the process.
I think the most powerful idea of becoming a real estate investor is knowing how you are and how you want to retire. If you are an average person, you may just want properties to supplement your pension and social security.
Should You Consolidate Debt?
Just because you only have two properties doesn’t make you less of a real estate investor. You can still maximize your land by adding billboards or space for storage sheds. The idea of being a real estate investor is in your mind. You see things that others don’t. You don’t have to have 30 doors to consider yourself an investor.
I wrote the mega-article “Financial Independence through Real Estate” because real estate is the best way for the average person to retire comfortably. I still stand by this thesis; everyone can see through the eyes of a real estate investor.
How do you derive income from this property if you are a family of four and own a five-bedroom four-bathroom home? If you don’t want roommates, what can you do to achieve Mortgage Positive?
Can you section off the home and add walls that allow you to rent spaces safely? Can you use the extra rooms to store things for other people? Maybe you convert the area so people can use your home as a daycare or business throughout the day. You have to be super creative; that creativity makes you an investor.
Become CEO of Yourself
I wrote an article titled “Hustle in Your 20s and 30s, and Relax in Your 40s and 50s.” As we age, we hustle with our minds and thoughts, not physical labor. To form unique thoughts and ideas, we have to read every single day. Sorry, but that’s how the world works.
Wealth is a Mindset, just as real estate is a mindset. Reading is the link to make everything combine into a glorious stream of ideas and action. You have the chance to be the smartest person in the room; why not take it?
Well, that wraps up the Real Estate is a Mindset series, for now. The key takeaways are 1) read books, lots of them 2) add value to others. With these two things in mind, you will start to see the world through different lenses. Thanks for reading, and don’t forget to download the Free PDF for safekeeping. Enjoy and Happy Investing.
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