Most investors will not tell you the number one secret in investing in real estate the right way. But I want all investors to know it. If you’re investing in real estate, here’s the number one secret that you must do!
Build Your Real Estate Business First
To help ensure that you don’t lose money, you do this business well, and it becomes automatic; the key is building the business first.
Many people will try to tell you that the way to invest in real estate is to find a property, analyze the deal, and make sure it will make you money and passive income.
Then they will tell you to buy it, get somebody renting it out, and that you’ll be fine. I believe that is the worst advice you will ever get.
Nobody else is talking about this, but I want everyone to know, and I want to teach you how to do it. Using this approach will make you successful when buying property after property.
This will ensure the business is automatic, where it runs on its own. I only work thirty minutes a month! Thirty minutes a month is all it takes for me to look over my 30+ properties.
Even though I work minimally, I continue to make thousands of dollars a month on passive income.
Invest the Right Way
When investors do it that way, they may buy a property and start losing money. For example, they may get bad tenants, or a property manager starts stealing from them. Before they know it, things are out of their control.
When this happens, it is a benefit to those who follow the secret that I teach. Those investors get fed up with all of the issues and bad things they will likely sell the property for far less than it is worth.
In one instance, when I offered $125,000 for a $200,000 property, an owner was so frustrated with things that they only countered with $130,000 right then.
I saved $70,000 on a property that I then would run the correct way. That property is currently worth $300,000.
How to Build Your Real Estate Business
Find An Area Of The Country To Invest In
Certain places are better to invest in than others. However, you can choose the area that you want to invest in. I invest all over the United States in Texas, Ohio, Arizona, and California.
I even have students who invest in Tennessee, North and South Carolina, down to Florida and up in Idaho. In these places, my students follow a step-by-step process and build their business first.
Students now get to use the internet to do their research, whereas before, they would have to fly to see the properties.
I used to fly to the properties I wanted to invest in because in 2006/2007, when I got started, the technology wasn’t as good as it is now.
Now, neither myself nor my students have to fly anywhere we want to invest.
Out of the 30+ properties I own, I have probably only seen two of them in person. I treat my properties as inventory because investing in real estate is a business.
Why You Should Build Your Business First
Imagine starting a convenience store from the bare bones. There is nothing on the inside. Nothing set up, just empty walls.
Merely adding a box of candy bars and expecting to run a business is a surefire way for the business to fail.
What you need to do instead is build the business. First, you would choose the shelving and countertops. You would install cold storage, a fountain machine, and registers.
You would hire employees, set up bank accounts, and set up inventory. All of this would have to take place before you could call your convenience store a business.
As every piece of candy in the store, every house you invest in is a piece of inventory.
If you view the actual property as your business, you are looking at the whole thing the opposite way of teaching you and my students.
You have to consider the properties as the inventory and the business as investing.
Once you find the location, definitely utilize the internet. I use Zillow to find significant areas of the country to invest in.
I also have more videos about how to use Zillow that show you how to find places that you should invest in.
Build Your Team
Many people may tell you to build your team, but I will show you how to do this. Even better than calling them your team, call your contractors and employees your business.
The number one person to add to your business is your property manager.
For example, you find a great area to invest in, like Columbia, South Carolina. You decide that this is a great area to start investing because it can make a lot of money.
The first thing you want to do is call up and interview six property managers.
Why Your Most Important Hire is Your Property Manager
In my real estate wealth builders community, I teach people how to invest and change their lives. I tell everybody to interview six different property managers to know exactly what you’re getting.
You want to find the best property managers by asking the right questions to show you the right areas to invest in, the useful properties, and what you should be watching out for all in the area.
What to Do if You Can’t Find Property Managers
If you can’t find a good property manager, it may be best not to invest in the area. At one time, I flew to Springfield, Illinois, and was unable to find a suitable property manager.
I know my expectations, and I could not find someone who could uphold the expectations. So, I flew home and decided not to invest in the area even though there were some good deals around.
People told me to snag the good deals, but I was not comfortable, and I knew I would not make money without having a good property manager for those properties.
My rule is that you should find the manager first, and then look for the good deals.
Who to Hire After Property Managers
Once you have a good property manager, hire more people in your business like realtors, wholesalers, handymen, inspectors, roofers, plumbers, and contractors.
All of these people will be necessary for your business.
I urge that you should make sure you can trust them by talking to and interviewing them. Once you have this, you have the core of your business.
The Next Steps in Building Your Real Estate Business
Start Looking For Properties
The next thing you need to do is you need to start looking for properties. Even though it may be common sense, you have to make sure your property manager approves and says they will manage the property.
Pro Tip #1: Make Sure the Property Manager Approves of The Property
I had a student at one time who had found the perfect property and believed he would be making good money.
If the student had listened to other people and just looked at numbers, he would not have made money.
However, I urged him to run the idea past his property manager to talk about rent amounts, rehab, fix-up costs, and make sure the manager was on board.
Once he did this, the student found that the manager was not on board managing a property in the area because it was a bad area.
Run Everything Through Experts
If you don’t have a business built, you can’t just buy a property. As you are building the business, you want to make sure you run through everything with experts.
I coach people on how to invest in real estate and have students all over the country.
Even though I live in Arizona, I have students investing everywhere. When students ask me about a specific area or city, I usually them that I am not an expert in that area.
The investors are not experts in all the towns and regions.
The people who live and work in the area are the experts. They have the knowledge and experiences in the areas.
I want to make sure that people do not rely on me being the expert and to reach out to people in the actual area they are looking to invest in.
With my course and coaching, I am merely teaching the principles. My goal for the course and coaching is that you learn the principles.
Lastly, I want my students to learn the principles and be able to use them over and over again. I don’t want you to forget to check in with the experts in the city or area you are looking at investing in.
Talk to the property managers, contractors, realtors, and inspectors because they are the real experts in the area. They will be the ones who investors will rely on.
Premium online courses for any level of investor: beginner-advanced. Completely go at your own pace and can be taken through “Self-Study” or through “Membership”.
Inside the membership, attend live 90-minute Group Coaching sessions with Coach Dustin Heiner as he and the MPI Coaches teach you how to build a successful real estate investing business.
Connect with the MPI Coaches and the other like-minded investors inside the MPI Mastermind Community. Ask questions about investing and get feedback how to be successful in your business.