Today on The Epic Real Estate Investing Show, get the last 6 of Matt’s 12 lessons from 12 years of investing in real estate! Learn one huge mistake new entrepreneurs make and how to avoid it, what happened when Matt switched from single family homes to multi-family properties, specific questions you can ask yourself to minimize risk in your business, and much, much more!
What You Will Learn About [Part II] 12 Lessons from 12 Years of Investing in Real Estate:
- How real estate investing provides the best odds of achieving epic wealth
- The risks of switching asset classes (and the importance of checking your ego at the door)
- What happened when Matt switched from single family to multi-family properties
- What it means to “go deep before wide” and how it can change your business
- Matt’s outlook on bad experiences
- One huge mistake new entrepreneurs make and how to avoid it
- The surprising way misdirected blame can end your real estate investing career
- Why a $1,000,000 deal is actually easier than a $100,000 deal
- Questions you can ask yourself to eliminate all single points of failure in your business
- Where the real risk lies in real estate investing
- It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
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- Need time? Work on your business rather than in your business by leveraging the time of others. Access free information and find real estate-trained virtual assistants to help you free up your time. Learn more at VAsForRealEstate.com.
- Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy! New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
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Speaker 1: This is Theriault Media.
Matt Theriault: Yeah. Hello, and welcome to the Epic Real Estate Investing Show. Glad you found us because if you’re frustrated because you don’t know how or where to get started or restarted or don’t have the time to do it or you lack the necessary funds to seemingly get it done, I want you to know that you’re in the right place because each and every week here we cover different strategies and tactics and ideas for getting your real estate business to your next level. Your next level.
How to get it done in the time that you do have available and creating funding and financing strategies to build a cash flow and portfolio that can set you free to provide for yourself and your family, and to anyone else that you want to provide for. To where you can call the shots in your world. You’re in control of your life. That’s what financial freedom does for you in the world in which we live. There’s nothing else in our society that replaces money in which the way it serves us, right?
So money is really important and if you like money, you want money, you want wealth, you just want a big fat bank account and you want a monthly cash flowing portfolio flowing into that bank account, there’s no better way to do it than through real estate. it’s produced more wealth than anything else on the planet. Real estate is the final frontier where the average person has a legitimate shot at creating epic wealth. Got it? Let’s pick up from where we left off last week.
As I shared with you that after 15 years in the music business I ended up bagging groceries. Someone asked me, “Well, how did you end up … You started the whole story last week with bagging groceries. How did you get to bagging groceries at the age of 34?” Well, I started in the music business. I had 15 years in the music business. Did pretty well for myself but I ended up bagging groceries when the digital download came along as the video killed the radio star.
The digital download killed the music store and so everybody changed the way in which they consume music and it put us out of business. It turned the whole industry upside down even. I had to start life from scratch. I had to start over, right? There in middle age. That life began with bagging groceries for $7 an hour and after six months of soul searching I made the leap from grocery bagger because I wasn’t going to stay there forever, but I did have to eat.
I did have to keep a roof over my head, so I did that as I figured out what I was going to do, and at the age of 34, I started as a real estate agent. That was a big false start for myself but then after I realized that that wasn’t the place for me, I landed on my feet as a real estate investor and that happened a little over 12 years ago. I’m not done. I haven’t reached my real estate investing goals yet. I’m still actively investing. It’s still my full-time thing and I don’t profess to know it all by the way as I haven’t seen it all, but I’ve seen a lot.
I love that … I think it’s State Farm the insurance commercial when they say, “We know a thing or two because we’ve seen a thing or two.” I’ve got a lot more to see but I have seen a thing or two. I’ve got more than a thousand transactions under my belt. I still flip 10 to 15 properties each month. I hold 50 or so houses and notes in my portfolio, a combination of those two, and maybe that doesn’t, I don’t know, doesn’t seem like a lot to you or maybe it does seem like a lot. It’s all relative.
What I do know is over the past 12 years that I’ve been a full-time investor I’ve been able to identify 12 lessons that I’ve learned that if I could have incorporated these lessons from day one there’s no doubt in my mind that I would have traveled twice as far as I have. I would have gone do much further. I want to share these with you so that you can go further. You can sidestep these landmines that are out there as well as accelerate in other areas that you may be doing already well in to help you get to your real estate investing goals even faster.
It’s not get rich fast over here, but it is get rich faster than how most people go about it. Let’s get into those 12 lessons from 12 years of investing in real estate. I shared the first six with you last week, last Monday, and so if you missed that go back and grab those when you going to a chance and then we’ll resume here today with the rest. Seven through 12. We’ll do that today, and again, in no particular order.
Number seven, this was a … You know what I was thinking about last weekend after I was producing and editing the podcast and uploading it for you, I heard it back and it kind of had like a down vibe to it. I don’t know, at least it kind of came off that way or I can see how it could come off that way. These lessons that I’m going over, those six that I went over last week and the six that I’m going to go over today, I just want you to watch out. I think real estate is great. I think it’s your only shot at creating real wealth.
The average person, they don’t really have any other opportunities. Sure, you can go and invent something. You could go and write a hit song or write a bestselling novel, or there’s all types of different things out there that can produce wealth for yourself, but the odds against those panning out are so much against you. But when it comes to real estate, when 74% of the wealthiest 1% have either made their money or preserved their money in real estate, those stats, they’re very telling. There’s nothing else out there.
Like writing a hit song is not even a measurable percentage on the amount of wealth that’s created in this world for the number of people that have created wealth. But almost three-quarters of those people have either made their money, the wealthiest people in our society have made their money or preserve their money in real estate. That’s what you call a clue. It’s what you call evidence. Real estate is the final frontier where the average person has a legitimate shot at creating epic wealth.
So everything that I’ve ever shared with you on this show up to this point and everything that you’ve heard everywhere else that real estate promises it’s all 100% true. But it doesn’t mean it’s easy. It’s just the easiest way to get there per the statistics, okay? With these lessons I’m sharing with you, these are some of the toughest lessons that I’ve learned so I can help your journey and make real estate investing even easier for you. But it’s not just easy peasy lemon squeezy and you go out and you buy a house and it’s all done and now you’re wealthy.
It’s still a business. There are still risks involved. There are still things you have to watch out for. You have to be careful. It takes experience. It takes some skill, takes some guidance. All right. That’s what this lesson is for. If last week sounded a little bit down just understand I’m sharing these lessons with you, and I don’t know, maybe indirectly or subconsciously they’ve been attached to some painful experiences in my life and maybe that pain came through in my voice.
I’ll try and keep it a little bit more lively today but these lessons here are no more … not lightly, but more upbeat and more positive. But these lessons here they’re no less important because they’re coming on the second version of this how on part two of this show. They’re just as important and the lessons that if you can take these lessons and you can apply these lessons and this knowledge to your investing from this point forward, you can avoid a lot of pain. Got it?
You can avoid a lot of money lost and everything that real estate promises can be yours faster and easier. Got it? All right. Cool. Number seven, don’t assume that your knowledge of one asset class will translate to another. Don’t assume your knowledge and your experience in one asset class will translate to another. I want you to check your ego, okay? Just because you might have crushed in self-storage doesn’t mean you’re going to crush it in apartment buildings.
Just because you’re doing really well in notes doesn’t mean you’re going to go out and crush it in the land. You might, and there’s a good chance you will because there are a lot of similar experiences, but don’t assume just because you’re a stud in one asset class that you’re going to be a stud or a studette in another. I want you to check your ego. Listen to the people that have been there before. Never stop learning. Never stop learning. This lesson comes to me after making the transition really from single family to multi-family.
I’ll give you my personal experience here. At the time when I made this transition, I had more than a hundred single-family properties to my name and I had found a 14 unit building and thought, “Hey, it’s just 14 single families under one roof. How difficult could it be? I got this. I mean, I am a successful real estate investor.” That’s what I was thinking. True, I was a very successful real estate investor but that success doesn’t automatically translate to another asset class or to other asset classes.
The experience that I’ve had will certainly help me but it doesn’t mean it’s automatic. Now, in hindsight multi-family properties, they weren’t difficult, right? There’s a lot of people very successful with multi-family properties. I don’t think they’re difficult. There were just things about a multi-family building and that strategy and that investment class that I just didn’t know. That’s all. To simplify it, investing in multi-families it’s a business and managing them is another business.
One thing that’s kind of different about multi-families and single families that I learned was it’s a business within a business. It’s not so much of the set it and forget it type of investing that single-family properties can be. I say that very … I’m going to emphasize how it can be. I didn’t say single families were set it and forget it but it can be that way. Especially when you start doing it for a while and you’ve got a bunch of them under your belt, you figure the thing out and it can be set it and forget it for the most part.
With the multi-families, there are just many more knobs and dials to watch. Also, one of the previous lessons that I shared last week that contributed to my frustration with multi-family properties and that would be to delegate, don’t abdicate. You know, I picked up this 14-year building and turned it over to someone else to manage for me. I abdicated, I didn’t delegate. I said, “Here, run this and pay me. Don’t tell me anything.” I didn’t say that but that was kind of my vibe and my emotion around that thing. I’m much smarter now.
That’s what bad experiences do for you. They educate you. They make you smarter. In real estate, you’re making money or you’re getting an education. I am much smarter now and those bad experiences that’s what they do. They educate you. Good management of bad experiences, what that leads to is great growth. Bad experiences they can stop us in our tracks or they can cause us to make decisions that we would like to put off. They can make us deal with issues we would rather not face and those bad decisions can make changes that make us feel uncomfortable.
Bad experiences they prompt us to face who we are and where we are and what we do with that experience it defines who we become. My outlook on bad experience like this is to reload and fire again. Just this time with better aim, focus, and experience. Okay? When going into something new just check your ego. Listen to the people that have been there before. Another lesson that I learned with my multi-family experiences and this isn’t exclusive to multi-families but I learned it here.
It was just a lesson that was actually magnified for me here and that is to … and this brings us to lesson number eight for the day. To go deep before going wide. You know, entrepreneurs they have a tendency to be impatient and they want to build and grow an empire as fast as possible. To most new entrepreneurs growth it looks like width. More, more, more, right? However, after you’ve learned that growth is not by going wide with your endeavors but rather by going deep with what works, then an entrepreneur will experience true growth.
You want to go deeper, much deeper than you think before you want to go wide. Most entrepreneurs they go wide too fast. Go deep with your core business. Become great at it and see to it that it is a true business before starting a ‘second business’. I’d say a true business is one that runs with or without you. Until your business reaches that state, resist, do everything you can to resist starting a second business or expanding your existing one.
If you don’t have the systems in place for a small business to run on its own, then you’re going to really struggle and potentially collapse altogether when you try to run a bigger business without those systems. If your systems can’t run that small business don’t get caught in this trap thinking that you’ll figure it out when your business gets bigger. Okay? Apply this idea also to your asset class, to your market, to your lead generation, to your conversion process, to everything.
For example, resist adding a new market to your investing until you get your existing market efficiently working for you. Adding more market does not make your business better. Makes it more complicated, makes you busier, makes you frantic. It steals your time. You want to get your current market working before you go and expand at another one. It’s not going to make it better. A lot of people think it does. I’ve made some hasty decisions in the interest of growth and in hindsight flat out bad decisions.
But the only way to get to a place where you consistently make good decisions is from racking up experiences and experiences come from making bad decisions. I share this with you because I sadly see so many people quit real estate because of the bad decisions that they’ve made failing to take responsibility for those decisions and they blame it on the real estate itself. They say stuff like, “I’ll never do that again.” I just had this conversation with my uncle this last week and we hadn’t seen each other for a while.
Actually, a really long while. It’s funny how family emergencies they’ll bring people together, but anyway, he had asked me how many properties I had now because I hadn’t talked to him in so long. He went on to reminisce about how the one rental that he purchased in the past was such a disaster that he’d never get into real estate again. I thought, “Wow, what a waste of that experience.” He walked away from that experience and that education with totally the wrong lesson.
Imagine if you walked away from every bad experience like that, where would you be today? You wouldn’t even be able to walk if after the first time you fell down you said, “I’ll never try that again. This walking thing, this is for the birds. That hurt.” Anyway, got a little off topic there. The lesson here is, go deep before going wide. Deep is where the growth is. No need for you now to experience that yourself. You can now leverage my experience and this means to make good decisions from this point forward, all right? About growth, about expansion.
Go deep before you go wide. Go much deeper than you think, and when you think you’ve gone deep enough, go a little bit deeper before you go wide. All right? Didn’t confuse width with growth. Number nine, think big. Yeah, don’t be afraid to think big. Don’t let the zeros scare you. What I mean by that and this is a pretty simple one. There’s no more work involved in a million dollar deal than there is in a hundred thousand deal. A discounted real estate is discounted real estate and there is no shortage of buyers and lenders for a deal. Any deal.
There’s a lot of money in the system right now and there really always is for the discounted real estate. There’s no shortage of buyers and lenders, partners for a deal. Any deal. Actually, really the bigger typically the easier. The bigger the deal, typically the easier. Not to mention bigger profits. When I say easier it’s if there’s a lot of profit involved it’s easier to find money, it’s easier to find partners and it’s easier to find people that are willing to help you.
I find with those bigger zeros you’re typically dealing with smarter people as well, which makes the relationships easier. The air is cleaner up there. The view is better and the competition is less as well. Think big, don’t be afraid to think big, okay? It’s no more additional work. If you can do the same amount of work and add a zero to your profit, why not? Number 10, this is a biggie. Really big. Eliminate all single points of failure. Look for the single points of failure in your business and start going to work on those eliminating those.
You know, real estate, the real estate, that’s the easy part. Real estate is safe. People are risky. Real estate is safe, people are risky. Diversify your team as well as your markets, as well as your asset class. You want to start your property managers out slowly. You want to micromanage contractors. I always say property managers and contractors. I always go to those people and when I say real estate is safe people are risky, those are the two people I’m talking about. Your property managers and your contractors. Not exclusive to them but mostly.
I look back on every single dime I’ve ever lost in real estate and it can be summed up to either, whether that’s directly or indirectly, bad property management or bad contractors. If you eliminate those two things, if you can get those two things under control, boy the sky is the limit with real estate. It’s really tough to lose. It’s really tough to mess it up. Again, delegate, don’t abdicate. Don’t do that. At least once per quarter … That’s how you eliminate your single points of failure.
At least per quarter, and we do this in my office, I want you to ask yourself, “If I were my competition how would I put myself out of business?” Once per quarter I want you to ask yourself that. In fact, ask yourself that right now. If you were your competition right now, how would you put yourself out of business? Would it be destroying your paper clip campaign or would it be talking your secret postcard away or would it be your property manager passing away? Right? How would you put yourself out of business?
What would be the easiest way to put yourself out of business if you were your competition? I want you to scribble down everything you can possibly think of and then go to work in either creating redundancy in that part of your business so it’s not a single point of failure or creating some sort of safety net, okay? Whether that’s, I don’t know, maybe same money in the bank, a reserve account or it’s an insurance policy or something like that, okay? Go to work there.
I talked about the property manager passing away, it might have sounded like an odd example for you, but that was actually my example. That’s where I got burned significantly. To this day, it’s something that will come up of which I still have to pay for. I mean, this is a mistake I made six years ago and it still comes back to haunt me every now and then. You know, when I was really hot on Memphis I was buying everything I could in that market.
My turnkey clients I was telling them, they were buying everything they could find and at the height, I had more than a hundred units of my own in that market and close to 60 properties of my clients, all managed by one person. When that person passed away I was in deep crap. I panicked. That’s 160 units that were there all of a sudden in an instant unmanaged halfway across the country from where I was and so yeah, I panicked. Yeah.
Good old calm cool and collected Matt panicked and I acted hastily willing to really hire anyone that even remotely fit the bill to take over these more than 150 units. When they didn’t work out I had to find another and even that person didn’t turn out to be perfect and I don’t even have that person anymore, but really this was a six-month process to stabilize this collective portfolio. There were a lot of missed rents in there. A lot over that six months.
Like most of the rent was missed and it put me in a hole, a deep hole and it put my clients in a deep hole of which I ended up carrying the load for everybody. I couldn’t let them get into the deep hole like I was so I had to … You know, I had to write a lot of checks to keep everybody whole and complete. It set me back quite a bit and that property manager he represented a single point of failure in my business and when it failed it failed big. Now, in every market, I have at least two property managers. I’ve got two realtors.
I’ve got two contractors and I share the wealth with all of them. I spread my business around with all of them and everybody knows of each other and although it’s not a perfect system, it’s far better than what I had in place, but it’s not perfect, but I do notice the performance or my entire portfolio has significantly improved. The expenses of my portfolio have significantly decreased. I notice I get thank you notes from my clients now and everything is performing much better since I put that in place.
I eliminated those single points of failure and I double up on my team, at least in some of my markets I’ve tripled up on my team. Yeah. The performance has improved. Expenses have decreased, but most of all if God forbid, another property manager passes away or another property manager goes out of business, I’ve got somebody in place to help minimize losses and stabilize performance until I can put another team together. That’s what diversifying your team can look like, but you want to look at every aspect of your business this way.
You want to look at your markets this way. You know, if you’re in a market that’s dependent on a single industry that’s something that could put you out of business if that industry goes out. I remember back in … I think it was the 80s. It might have been the 70s/80s. It was before I was a real estate investor, but I remember this story because it was a local story in Lakewood in Long Beach here in Los Angeles. Those neighborhoods, those residents were heavily dependent on the aerospace industry.
When a couple of those … I think it was Donald Douglas and Boeing or something like that when they started doing massive layoffs the real estate market there just … it collapsed. It just disappeared. I think this happened in Houston in the last couple of years with the oil industry, right? You want to check your markets for that. You want to make sure that those aren’t your single points of failure. Your asset class might want to diversify your asset class. Like I hold a good balance of actual properties and notes now. Your key people.
Are there people that you just could not move forward with without? Right? That might be your single point of failure. Or maybe it’s even you. Maybe you are your single point of failure. Maybe if you walked out and got hit by a bus your business would die and your family would suffer because they would no longer have an income because you are the single point of failure. You know, at some point you’re going to want to duplicate yourself. You’re going to want to be a redundant piece in your business, a redundant piece in your business.
That’s when your business will be a real business. All right? Go through your business. I want you to eliminate all single points of failure. Once per quarter I want you to ask the question, “If I were my competition, how would I put myself out of business?” I want you to write every single thing down and then go to work one either creating redundancy in that portion or putting some sort of insurance policy on that piece, that’s your single point on failure, okay? Number 11, say no more often. Practice saying no.
You know, as entrepreneurs, we see opportunity everywhere and we like to say yes. For a couple of reasons. One, we’re entrepreneurs and we want all the opportunity. We want to be big. We want to grow. We want to make lots of money. That’s why we’re entrepreneurs. We want to conquer the world. But also as entrepreneurs as you’re getting started the money, it can have its inconsistent moments or you can have your uncertainties about whether one thing is going to work for you or not.
You’ll say yes to things as a backup plan or just in case or as a supplemental income or a supplemental income stream. Say no more often. When this comes to real estate and deals missing out on a good deal is far better than getting involved in a bad one. Just because someone is willing to sell you their house at a discount doesn’t mean you should buy it. Just because someone is willing to give you their house doesn’t mean you should take it.
Just because you may be super close with your price and terms with a seller, you’re super close on getting a deal doesn’t mean you should flex and compromise your minimum deal standards to do that deal. You want to be a shopper of deals. Don’t be a buyer. You want to be a shopper of deals and shoppers say no more often than buyers. The best investors are shoppers and here’s what I mean, several years ago, this is probably about six years ago or so too, I was offered a 50 unit building at $1,000 a door. Yeah.
I was going to get a 50 unit building for $50,000, that was very exciting to me. I was like every unit needed to be completely rebuilt but gosh I was just doing the math and I had the bricks alone of the structure estimated at more than 50,000. I couldn’t buy that many bricks for 50,000 bucks. Not to mention the giant parcel of land that that building sat on as well. This seemed like a smoking deal and it was, and I bought it just to buy it, but it wasn’t what I was shopping for. It wasn’t in my asset class at the moment. I didn’t have a team in place to rehab it.
I didn’t have the funds either to complete the rehab, or even start it at that moment, but it just seemed too good to pass up so I bought it. Well, I sat on it for more than a year, had to pay the property taxes, had to pay the weed abatement penalties, had to pay county and I had to keep the Condemnation Board at pay. Let them know I was going to do it before they condemned the property and took it away from me. I was constantly kicking squatters out of the property. It was a huge pain the ass.
Now, I did pull out of that deal and I was able to sell it for 100 grand. I did okay on it financially. I don’t think I really lost any money on the deal, but I’m not sure if even that profit was worth the yearlong … a probably 18-month long headache that the property was. I don’t feel it was worth it, and then that opportunity cost as well. I mean, I think those are incalculable. Just the stress that I had that building put on me, who knows what I missed out on, or that I was thinking clearly, that I lost sleep and I missed out on other deals because I was so concerned with this.
The whole point is, know what you’re looking for, okay? Know what you’re looking for and if you find that doesn’t exactly match err on the side of saying no. Now, you might … I mean, every situation is going to be different. There’s too many variables at play for me to give you an absolute here, but I just want you to err on the side of saying no because it’s much better to miss out on a good deal than it is to pick up a bad one. Stay focused on you, okay? This is kind of another version of going deep before going wide.
You want to go deeper in what you know before going wide into stuff that you know less about. Okay? That’s number 11. Say no more often. All right, number 12. I want you to practice your people skills like any other skill. Practice, drill, rehearse because real estate it’s a people business. I’ve said it a thousand times. At least every piece of real estate you buy or sell with from or to another person. If it’s your job to buy low and sell high the better your people skills are, the wider that that gap is going to be.
The wider the gap from how low you buy to how high you sell, the wider that that gap is going to be. If you practice, drill and rehearse your people skills in the same manner a professional basketball player does his jump shot, if you treat your people skills like you would treat any other skill like a jump shot or your free throws or dribbling the ball, real estate can pay you far more than the NBA will ever par any single player. Even its greatest star. It’s a skill that pays the bills in the profession that you’ve chosen in the endeavor that you are pursuing.
It’s a skill that pays the bills and then some. It’s why if you haven’t already, you’ve got to get to our next ground in Pound School. That’s what we do there. It’s this skill. You can apply at groundandpoundschool.com. Okay? The point here, the lesson is practice your people skills like any other skill. Practice, drill, rehearse just like athlete practices their craft or a musician or an artist practices their craft because this is your craft and the better your people skills are the more money you’re going to make, boom! Point blank. That simple.
All right, so between last week’s episode and this week’s, that’s 12 lessons I’ve learned from 12 years of investing in real estate. If you were to add up the dollars that I paid the school of hard knocks for those lessons, for that tuition, you’re looking at a seven-figure education that you just got for free. I’ve got two more lessons for you because I wasn’t sure how to fit these in. I haven’t been investing in real estate for 14 years, so I couldn’t call it the 14 lessons from 14 years of investing in real estate, so I gave you 12. It just sounded better.
12 lessons from 12 years, but I’ve got 14 lessons from 12 years and now I’m going to give you these two extras. We’ll call these bonus lessons. The first bonus lesson is cooperation over competition. Choose cooperation over competition. I have no real way to measure this so I’m not 100% sure factually, but I’m 99% sure instinctively that I’ve made far more money by cooperating with other investors in my respective markets than I’ve lost from their ‘competition’. Investors are buyers, investors are sellers and they can’t buy and sell everything.
They’re going to need help from other investors and you too you’re going to frequently need help as well. Treat your fellow investors with respect. Treat your fellow investors with integrity. Do right by them. Your reputation here is important and look at them as allies rather than competition. Cooperate, choose cooperation over competition. Also, be willing to give first. Don’t sit there and wait for what are you going to do for me before I give back to you? Don’t get into that weird competitive thing and get all protective.
I want you to be willing to give first and give this way, give with no expectations that it’s going to be reciprocated. Just give and don’t hold a grudge if your goodwill isn’t reciprocated. Don’t have any expectations. It’s the only way you can be disappointed is if you have expectations. Yeah, give without expecting. Give and detach yourself from the outcome. Don’t hold a grudge if your goodwill doesn’t get reciprocated. Give and cooperate in this manner. In the long run will be yours to win. In fact, you will win.
Competition and negativity and keeping secrets, holding back and getting in there and fighting it and scrapping for yours, all that, that can win in the short term. That competition and that negativity, that can win in the short term, but cooperation and positivity it always prevails and comes out the winner in the long run, okay? Choose cooperation over competition. Number 14, this is bonus lesson number two. Whatever you calculate your rehab budgets to be … and this isn’t like a full lesson, but it’s important and I’ve learned this the hard way a couple of times.
Whatever you calculate your rehab budget to be, just before you close and begin work, double the budget. Just before you close the deal and start your work I want you to double the budget. It’s not always going to be double, but if you’re prepared for it, life as a real estate investor will be a much happier and less stressful endeavor for you. Another note to this point, always calculate a second exit strategy in case plan A doesn’t pan out. Knowing that you’re prepared for what can go wrong allows you to sleep better.
It allows you to be better rested and when you’re better rested you think more clearly, you make better decisions, and you profit bigger and more frequently because you’re thinking more clearly and making better decisions. With that rehab budget plan on doubling it, okay? Have something in place in case it gets doubled it’s not a big deal to you. The second thing is always have a plan B for your exit strategy in case plan A doesn’t pan out because sometimes it doesn’t. All right?
There you got, 12 lessons from 12 years of investing in real estate, now you know but they’ll only impact your business if from here you do what you now know. Knowledge, it’s not power. Contrary to all popular thinking knowledge is not power. Applied knowledge is your access to power. You know what to do, now do what you know. As a true teacher will never tell you what to do. You know. You know what to do. Now you just have to do it. All right? Take care. God bless and to your success. I’m Matt Theriault. Living the dream.