What do you think the biggest challenges new real estate investors face ? What advice would you give new investors to overcome these challenges ?
How important is it to network in real estate investing ?
HOW TO GET STARTED INVESTING IN DISTRESSED REAL ESTATE LEX LEVINRAD
What do you think the biggest challenges new real estate investors face ? What advice would you give new investors to overcome these challenges ?
Since I have trained thousands of students on investing in real estate I can pin point two common characteristics , or traits that hinder most new students . Ironically , it is not lack of money or lack of credit , although most new investors think that is what hinders them .
In reality , what hinders most people is themselves . They have preconceived notions of work and how to make money that are so ingrained that they have to essentially be deprogrammed . From a young age we are taught to go to school , get good grades and get a good job and work hard . That is not how you get wealthy . That is how you get stuck – which is indeed where most people find themselves .
Breaking away from your own selflimiting beliefs can be very challenging for new investors . It is also not something we can teach . The second challenge is education . Many people will simply not apply themselves enough or be willing to put in the hard work that it will take to learn the mechanics of understanding wholesale real estate . There are many moving parts but everyone just wants to get rich quick . And unfortunately for them , there are many companies out there that will take advantage of that and oversell “ get rich quick ” real estate systems .
They say it takes 10,000 hours to become an expert at something . That is 5 years assuming 2,000 hours in a year . That is a long time . Now it might not take 5 years to learn how to flip houses , but most people would not be willing to commit to that kind of effort to be successful and to change their life , their net worth and their financial situation . Those that are willing to make that sacrifice can achieve phenomenal success investing in real estate . And of course many do indeed change their lives . I have many students that are examples of that .
How important is it to network in real estate investing ?
It is very important since if you are buying and selling deals all day then you need to have people feeding you deals and you need to have buyers calling you . Most new investors don ’ t understand this and want to do everything by themselves . Everything we do , every deal we sell is partnered with someone . We have banks , real estate agents , students and other wholesalers feeding us deals every single day . And we have a huge database of cash buyers calling our office looking for deals . Networking is very important .