What would you teach your younger self?

Question

What would you have done differently when you first started? What mistakes do you think new landlords often make? What advice would you give somebody just starting out?

Let's give the startup investors a heads up.

Nam Trang · Answer

@David Richter I got the book just now! Will definitely finish it up this weekend. Thank you!

David Richter · Answer

Hi @Nam Trang,

Read the book Profit First and learn how to manage what you make in a simple way. That would change the investing world and it can change your life. Wish I would've read it years ago.

Jin Kim · Answer

Hello Nam! Great to hear you're starting out! Here are my advice:

1) Take the jump! Buy your first property. You are going to feel anxiety and nervousness. That is perfectly normal. I still get it. You just need to trust your judgment.

2) Make sure it cash flows! Run your analysis and make sure you're making money. I make sure to include the 5% vacancy and 5% capital expenditures.

3) If you are going not going to manage it yourself, interview your management company. Do your research. I look at google reviews and yelp. Even after the great reviews, I interview them and make sure they fit my certain requirements. Make sure they don't mind you managing them. And question them after you hire them. I question my management company for my rental properties, they respond very professional, and understand where I'm coming from. Manage your management company.

4) You won't know what you're doing. Ask your management company all the questions. If you aren't using one, try to make a friend in the management company if you can. Get free advice but make sure you treat them well. Ask them to explain things to you when they do something. That way you know the laws and regulations for the state you're in.

5) Constantly educate yourself. Never stop learning. And if the first deal goes bad, learn from it, re-evaluate, and jump back in my friend.

If you ever need any other advice or questions, please free to message me! I'm sure others will have better advice than me!

Nathan Gesner · Answer

I would have started earlier. I delayed because I was in the military and moved every 2-3 years. In reality, that was an opportunity missed. Had I just started during my last ten years of service, I would have five more houses under my belt with some amazing cash flow and equity.

The best time to plant a tree was 20 years ago. The second best time is today.

Everett Marshall · Answer

I would def teach my younger self to not listen to naysayers, and dive in and learn this business. I would be way ahead now had I just followed my heart.

Nicole Heasley Beitenman · Answer

I'd have taught my younger self to worry more about equity and less about cash flow.

Jim K. · Answer

That's really easy, now. I spent a lot of time as a young man musing about and trying to avoid how broken, how corrupt, how filthy the world actually is. I thought to let the world be the world, and I would do my own thing, and at least I would be clean in my own soul. I wanted to be noble.

In practice this meant there were a lot of things related to money I didn't do, didn't even look at, because I was sure that sooner or later, they would stain my escutcheon, sully my breakfast cloth. It was all a form of cheap pride, really. I really, really wanted to look down my nose on others from the privileged perch of my moral clarity. Better not to grub for money. Better not to get involved in such things. Better to be broke and proud.

Now here's the strange thing, really. At the same time I was carrying around this attitude about money, I did a LOT of bad things. Somehow, in my warped brain, doing bad things didn't count if they weren't about money. Especially if it was about sex. I won't elaborate, but I had the morals of a pit adder when it came to women.

So what I'd teach my younger self would be to look at the hypocrisy of this duality and start working to change my life a lot earlier than I did.

Zachary Ray · Answer

Reserves and lots of insurance.

Alicia C. · Answer

I would have told my younger self to buy/keep all the homes that came along throughout my life.... I look back on so many missed opportunities because I wasn't taught about real estate investing.  I should have kept the first home I ever had (it would be paid for by now), my second home (it would be paid for by now), my late grandfather's house, my parents old house, etc.....

Joseph Firmin · Answer

Lots, but the main thing is to take action and be persistent. Think of it as a long game and continue to remind yourself of that. Do something, even a little thing, every day that moves you forward toward your goals.

Oh... and definitely have a contract with a contractor in writing, with a bonus $ if he finishes ahead of the agreed-upon timeline, and a $ penalty if he finishes early. :)

What would you teach your younger self?

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