Welcome to the start of a new year, in fact a new decade. No big resolutions for me this year but I did take a few minutes to reflect on my real estate investing experience. Why am I telling you? Well, as a result of my reflections I realized there are a few pearls of wisdom I could pass on to help others. I can’t go back in time and do it over but I can share these tips to help the new-ish investor. Why reinvent the wheel when you can learn from the successes as well as mistakes made by others? That’s what this article is all about. I’ve included things most investors wish they had done differently, a few that are specific to my investing strategy, and the things I got right the first time. For starters, here is my list of what I would do differently.
1. Start investing earlier.
This is one just about every investor will agree with. Real estate investing is a long-term play so the sooner you get started the better.
2. Use debt more aggressively.
Most investors also agree that you shouldn’t let the lack of cash keep you from getting started or seizing the opportunity when you find a good deal. If you need a loan for your next fix and flip or new construction project, check out our private money loan programs.
3. Take more risks early.
If you start early, you can take more risks because you have time on your side.
4. Limit the geography of properties.
It can be enticing to go where the great deals are but this can end up costing you. If your investment properties are scattered too wide and far, you may spend more time on property management and too little on finding the next great deal.
5. Delegate sooner.
Prioritize your time so you focus on what you do best and delegate the rest.
6. Expand into commercial buildings (from single family homes) quicker.
The lesson here might be diversification. No one knows what the market will do. In my case it would have been advantageous to get into commercial earlier.
7. Leverage technology better.
There are so many options today but a lot of time can be wasted if you select the wrong technology solution. Do your research upfront, it will payoff in the long-run.
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