Why should you become a Real Instate Investor?

First of all, I want to suggest you to have clear reason why you want to become a real estate investor.

Some say they want to make money. But money should not be the reason. The motivation should be more than money. If  you make money, what do you do with that money?

That should be your motivation. That should be more than money, or more than yourself. It should be some greater purposes.

Also you have to understand the reality of the business. You have to be ready to face many difficulties to come during this business course. Many people think if they start this business they can make money quickly and easily. But the reality is a bit different.

I check the data how many small businesses fail. There are many different numbers. Even conservative government data says 70% of small data fail in 10 years. No1 reason is lack of cash flow and lack of cash reserve.

Some data says majority of small business fail in the first year.  Simply you should know if you compare with employment and business, business is much tougher.  You have to do everything. You work 8 ours, 10 hours, 12 hours or 15 hours. Then you don’t make enough money to survive. People easily quit.

I understand people want to achieve financial freedom but you usually go through some difficulties. You need to have perseverance. You got to be ready to go to those situation. I often say we go to heaven by way of hell.

Also our identity as an investor is a problem solver.  We will find a motivate seller. Motivated sellers have some reasons why hey are so motivated. Usually those are some urgent problems. We can acquire properties and solve their issues. So we solve issues and we make money at the same time.

I want new investors understand how much real estate investment is beneficial.

An IDEAL Property

• Income

• Deductions/depreciation

• Equity

• Appreciation

• Leverage

Also I want you to study seriously every day.  The more you educate yourself, the more you feel confident. You should study key terms first. Then you can gradually understand this business.

Cash Flow

Depreciation, Equity

Appreciation,

Leverage

ARV

There are very important rule in this business.

You never do this business in your personal name.

In this business you need one S-Corp and one LLC.

Usually you do short term strategy using S-Corp, long term strategy using LLC.

Flipping deals are by S Corp and leasing business is by LLC.

You use your own money or own credit as much as possible. In other words, you use some from private lenders or owner(seller)’s money.

I want you to understand the whole picture of this business

Then you need to understand the process.

Most important activities is revenue generating activities.

It means simply marketing marketing, marketing.

We as an investor, need seller, buyer and money. Especially seller(properties) and money.

You should keep in mind if you don’t have a lead for properties, you can not stay in this business.

Always marketing marketing marketing.