5 Atomic Habits for the Multifamily Investor

Being a Real Estate Investor is an Identity

When I look back on my multifamily investing journey it's been a slow steady build over time from small pieces of information that built the identity of an "investor". I think back to the time when I first saw a spreadsheet, I think back to the one time I drove around a rough neighborhood over and over until I got over the fear of investing there. 

Any new identity is built on small action steps, or atomic habits, based on the very popular book by James Clear called "Atomic Habits".

What is an Atomic Habit?

A tiny habit that you cant afford to fail at, that teaches you to "cue" the behavior of a new habit. 

Like 1 push up a day.

or

1 minute a day to look at a new multifamily that came on the market

Investors Need Atomic Habits to get over the hump of Analysis Paralysis

These small action steps also help a new investor step away from fear into action, and gain momentum. 

It's never been easier to set up ways to bring information to you, and over the years I have found all of these small habits helpful as I build my own rental portfolio.

1. Set up a broad search alert on your favorite real estate website 

I recommend loopnet.com for multifamily, zillow or redfin. Yes it will clutter your inbox for a little while, but guess what? It will help you refine your criteria - the one you've been putting off for a while. 

2. Go to city-data.com and look up the median household income of ANY zipcode

You will notice you can see this number by census tract and not just zipcode. Play with the interactive map. 

3. Download a mortgage calculator app on your phone

As much as you can do the calculations in excel or use a rule of thumb, I like having a mortgage calculator handy on my phone. 

4. Go on loopnet.com, find the cap rate in ANY area for a stabilized property

Open loopnet.com, type in any zipcode, and sort the results by cap rate. Now look at the cap rates for properties that are "stabilized" or fully renovated. Are they all mostly around the same number? 

5. Open a blank excel sheet. Type in Income, Expense, Net Operating Income, Debt and Cashflow one below the other

Let it sink in that this is the "order" of financial analysis. Forget formulas and everything else for a second. 

Flex your Investing Muscle through Atomic Habits

These small habits will never let you forget that you are an investor and you are in investor that takes action, not just one that sits on the sidelines waiting.