No way around it—real estate investing has fundamentally changed my life for the better. From the friends and colleagues I’ve made and the real estate deals I’ve completed to buying our dream house on 11 acres and my wife being able to stay home with our kids, as well as future plans for philanthropic causes, my life would be totally different if it wasn’t for real estate.
How Real Estate Snowballs
My early mentor Rob used to talk about the “legs of the stool”—meaning, there are many different ways to create income streams that support the overall financial goal. Within real estate, that could mean wholesaling, rentals, fix and flipping, notes, brokerage or real estate agent work, or lending, to name a few.
Why does this matter? If you have a construction project taking longer than expected, you have potential income you can make from that flip, but it hasn’t yet closed and you’ve not actually made the money from it. But if you had a few rental properties cash flowing at the same time, you have steady income from the rentals and can take the big chunks from the fix and flips when they close.
The other nice thing about having the diversity in your business is that when you see an opportunity, you understand it, can decide if it’s a good opportunity for you or not, and take action.
As you do more deals, you also will start to get more opportunities from people who want to sell something to you, do a deal with you, or ask for your help in putting one together.
I personally have income that comes from rentals, fix and flips, real estate commissions, and some private lending to other investors. I’m always thinking about all the legs of my stool and how best to use the skills, opportunities, funds, and time.
Money Is Less Important Than Opportunity and Lifestyle
Money is easy to make, an it’s even easier when the target is clear. I often see young entrepreneurs get wrapped up in how much they are going to make and how fast they can possibly get to a certain income, house, opportunity, etc. It’s the wrong focus because ultimately, it’s really not about the money. It’s what you…