Some Advise From a Very Experienced Investor

[Don Konipol]

Advice  from an experienced investor to those starting out 

1. Stop chasing guru/mentor “education”, tactics, strategies.  Concentrate your education on real estate principles, real estate law, and real estate finance

2. Decide how much time, effort, dedication you want to commit to your real estate endeavor.  Are you aiming for part time / passive investment or full time immersion?   How about a  job in the real estate industry both to accumulate capital and gain experience? 

3. Evaluate your financial position and obligations.  How much capital can you commit to investing?  How much income do you need to quit your job and “go full time”. 

4. Evaluate the business, financial, analytical, and “people” skills you bring to the game.  Fill in with education what you lack.

5. Do NOT consider a partnership unless it’s for the VERY few right reasons.  Most people enter partnerships because of FEAR, or want of COMPANIONSHIP not any real benefit.  These always result in lost money, wasted time, and broken friendships. 

6. Take a realistic view of what can be accomplished.  Do you really believe  that someone with no capital, no experience, and limited education provided by 2 weekends at a guru boot camp is really going to be able to earn $100k annually by finding properties experienced investors spending $10k monthly on marketing to find have somehow missed, and then negotiating prices 50% below real value and flipping the properties to seasoned investors?  

7. Get your personal financial life in order if need be.  Commit to spending less, paying off high interest credit cards, maintaining positive cash flow in your personal finances, and cleaning up your personal balance sheet.  So you’ll be at least presentable when you apply for mortgage financing. 

8. Don’t get tied to any one tactic or strategy.  Opportunities in real property investment need to be evaluated individually on their own merits.