Real estate has always been considered one of the most stable and profitable assets, especially compared to the stock market, which is volatile in contrast. However, it often requires a larger capital, a good amount of experience, and a solid foundation of knowledge to land on the right path to success.
Furthermore, becoming a good real estate investor has a lot to do with continuous learning. But since investing in real estate is not taught in schools, many investors gather knowledge through their own methods. And for many, the best way to attain a good foundation of real estate knowledge is by learning from those already successful in the field.
That said, we’ve compiled the most valuable lessons from some of the biggest names in real estate today:
Brian Rudderow – Owner and CEO of HBR Colorado
At first glance, house flipping seems like a relatively simple process—buy a house, fix it up, sell it for profit; rinse, and repeat. However, it doesn’t take a lot of experience to know that flipping houses is more complicated than choosing the right laminate flooring and replacing windowpanes.
Take it from Brian Rudderow, one of the most successful house flippers in Colorado. Brian has flipped dozens of houses in his career and has managed to make profits that go up to the hundred thousands. Aside from prioritizing the most practical upgrades in his flips, Brian uses online marketing and SEO to drive leads into his personal website, which helps him find the best and most profitable flips.
Leverage marketing in your real estate business. Many real estate investors make the too common mistake of underestimating the power of marketing, which can lead to multitudes of missed opportunities along the way. Furthermore, if you are a house flipper, always prioritize the most practical and value-adding upgrades that the vast majority of home buyers want.
Scott O’Neill – Founder and Director of Rethink Investing
Scott O’ Neill managed to retire at 28 years old after generating a $20 million portfolio in just five years. Today, he helps other investors achieve financial freedom through Rethink Investing, which provides investment opportunities in Australian commercial real estate.
One of the key strategies that he urges investors to use is to find a good mortgage broker. In this way, investors will be better able to find the best loan terms and achieve optimum yield—even when growth slows down.
Spend more than enough time finding the right mortgage broker to work with. The same goes for every sponsor, business partner, buyer, and seller that you encounter. The better your people are, the more attainable growth and success will be.
Brian Burke – President and CEO of Praxis Capital, Inc.
Aside from being the President and CEO of Praxis Capital, Brian Burke is also the author of The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications. Through his books and public speaking engagements, Brian teaches other people how to achieve financial freedom by investing in multifamily real estate.
Brian is a firm believer that the biggest mistake real estate investors can make is having a single point of failure. He also stresses the importance of protecting your downside (your vulnerabilities and points of failure) to effectively protect your upside, which a lot of beginner investors forget.
Cover your downsides first, mitigate risks, and come up with contingency plans. This way, you can improve your stability and increase your chances of achieving both your short- and long-term goals.
Melanie Bajrovic, CEO and Founder at Melanie Bajrovic International Inc.
Melanie Bajrovic proved that you could go from working a low-income job to earning top dollar with the right mindset and setting up proper contingencies before making the jump into real estate. From being a bartender at her family’s restaurant, Melanie took the plunge at 22 years old and is now making millions of dollars by investing.
She urges aspiring investors to invest at the right time but don’t wait too long to do it. “People keep dilly-dallying for way too long. They take too long in the learning phases because they’re scared,” she said.
Set up proper contingencies and a solid foundation of knowledge, but don’t wait too long to take the plunge.
Entering the real estate market may be a daunting idea to many, but if you see where others have come from, you’ll realize that not all of them had an ideal foundation or the best backups in place. That said, make the proper precautions—but don’t let fear keep you from finally getting started.