Every investor has wants, needs and desires and they must put them as the biggest Priority. For an investor to get what they want, need, and desire in real estate they must do three things.
1. Make a PROFIT
2. Get their money in Securely
Without profit a real estate business will starve and be out of business. A person must learn to generate a profit for their business.
Before one makes a profit, they must get their money in good. They need to know they can get their money back out first. Mark Twain’s sentiments on this point is well taken, “I am more concerned about the return of my money than a return on my money.” Each investor must get their money in secure. The best way to do this is using OPM (Other People’s Money.) Therefore, many people use OPM.
Now, many people faulter on these first two principles as they fall in love with a deal, market, or people they are helping and lose sight of the goals that meet your basic wants, needs, and desires as a real estate investor. One must have a profit while creating security. When I use the word love, I mean they become emotional rather than using cold analysis while looking for the ideal investment. Cold analysis is the only way to analyze a real estate deal or opportunity. At one time a partner and I tried to create home ownership for families in low-income neighborhoods and we found out the hard way that we wanted it more than they did and therefore we had to change our model and rent out the properties and put them up for sale in order to avoid losing money and still generate a profit. Make sure that what you want aligns with making a profit in a secure fashion and leave all the emotion out of your wants, needs, and desires.
To find a great deal one must PRACTICE finding secure profitable properties, the more a person analyzes and looks at properties the better they will be at finding the ideal real estate investment. An old story illustrates this well, a gentleman shows up in New York with a violin and asked an older gentleman, “how do I get to Carnegie Hall?” The older gentleman answered, “practice, practice, practice.” Perfect practice makes perfect. Everyone must practice analyzing deals until they don’t get it wrong. When a person does get it wrong, they need to write down everything that went wrong in the process and figure out what must be done different in the next deal to make a profit and keep your money secure. Inside of breakaway Training we call it the Breakaway Boardroom and each week one must come back to the boardroom and figure out what worked well and what didn’t work well and get better.
If you want true economic freedom and true economic upside you must keep track of what works and what doesn’t. Through PRACTICE you will get to a point where you can analyze the PROFIT potential and SECURITY of a property and make an offer in under five minutes and these principles will lead to the ideal real estate investments.