Oct 15, 2020
Real estate investing gives us the opportunity to take control of our money and escape the false security of a traditional job. There are so many avenues we can use to gain freedom through real estate, provided we take that first step.
Many people who dream of becoming real estate investors spend so much time analyzing that first deal that they never take action, missing out on great opportunities in the process.
On the other hand, when they’ve gained some experience, the same investors under-analyze their subsequent deals, leading to short-cuts on due diligence and expensive mistakes. The correct approach is finding balance between taking action, making smart decisions and being cautious.
If we surround ourselves with the right people, borrow money the smart way, and follow a process, we can take decisive action while protecting ourselves.
What are some of the costly mistakes we avoid by taking these steps? How can we approach private lenders for capital for deals? In this episode, I’m joined by real estate investor, consultant and podcaster, Paul David Thompson, as he shares his transition from the corporate world, and the lessons he learned from buying 18 houses in 18 months.
Three Things You’ll Learn In This Episode
Why hiring contractors won’t always be
Hiring contractors is the hardest part of this business, and it’s a part of the process we’ll never quite perfect. The good ones are expensive and always start their own flipping operations. Everyone else can be difficult to work with. Instead of trying to perfect hiring contractors, we have to develop a system that allows us to maximize working with each contractor.
How to get money for deals without asking for
We get money for deals, not by asking for it, but by offering a solution to a problem. Private lenders have a financial goal or hurdle, and our deal holds the key to making their lives easier. This is what we have to leverage.
The dangers of borrowing money in our personal
Taking out commercial real estate mortgages in our own personal names might seem like a good idea because of seemingly lower interest rates. The problem is the bank can call the loan at any time and freeze our line of credit, leaving us with no money. This is going to happen to many investors in the wake of the pandemic, so be prepared.
Paul David Thompson is a real estate investor, consultant, podcaster and president of Wincore Invest. He teaches busy professionals how to escape their day job. He helps his clients design a real estate investment strategy that fits their needs, whether that's taking control of investments, reducing taxes, accelerating debt paydown, or leveling up in their investing game.
For more information and to learn about working with Paul, visit https://www.pauldavidthompson.com and listen to his podcast Ready Investor One on your podcast platform of choice.
Text INVESTOR to 33777 to get Paul’s free guide.