How Much Do You Need To Invest In Real Estate

How much do you need to invest in real estate? It's not as much as you think and the more creative you are and the more you're willing to work at it to learn it the faster this thing goes. So get a pen and paper this one's super fun. I didn't have a lot and I became a millionaire in real estate really working at it really for about a year or two not difficult. So I'm going to talk about where to start and what are you going to need to do like that'll be the biggest section of it. Then I'm going to talk about like where to get some investment capital and specifically OPM and OPC. So stay tuned if you don't know what those are. I actually add another one OPI. Hmm that really gets you interested isn't it? All right where do you begin? Well first of all you have to want to do real estate. Straight out I'm going to give you one of the biggest gifts. It's crazy I used to sell this package for like $800 but it's my real estate is leverage. It's eight hours of me talking to you on how I made selections to get into real estate when I was probably where you are just getting started. I didn't have a lot of the capital and I sure in that didn't have any experience or a Rolodex of real estate folks. So first of all you have to really want it. So click on the link below go get my gifts and start reading. The first thing you have to look at what's strategy? You know are you residential or commercial? And then where do you want to fit in? Are you doing this because you just want real estate because it's something sexy? And it is sexy it's in every every wealthy person has real estate in their portfolio. So at some point you need to engage with it because it's such a great asset class to own and every wealthy person has it. But as you get started what do you do? Now counter to a lot of what I'm gonna call traditional other gurus it's not a residential home. That's potentially unless it's in a college town where you can rent by the room. I mean you got one rent then you got 100% of a problem on run rent. So I like to start with four doors minimum. I mean two or four or even go eight plex because now you have multiple doors. So if you have one property that gives you four rents call it a four plex and one goes down you got three other people still paying. You could also move into the one remodel it right get more rent upgrade and enforce the cash appreciation and the rent depreciation then move to the next one remodel it move to the next one move the next one enough money have it refinanced pull the money out go to do another one and another one another one. It's what I'm going to be teaching all my student pro athletes. If you are not in a position or married where you have to have a home buy four plex it's a way better investment. By the time you play whatever sport you're playing for three four years and you're moving around you have four plexes you've got a gold mine by the end of your career. So I teach very different strategies much more practical on how do you get in and how do you make that kind of money. So I can promise you if you're willing to at least put together the project money will be attracted to it. See a lot of you it's an idea it's not a deal and you've got to move your idea of real estate into a deal that's operational where people could buy into an LLC they could do hard money loans to an LLC not you. No one wants to do business with you as a human they'll do company to company business. So if again I'm going to put a second link below go click on that link and talk to our corporate compliance and structure team what kind of company depending on what kind of state do you want to be in. And I just got to put a shout out to those of you in California there are new landlord squatter regulations coming down the pipe. If I had any real estate in California I would be racing out of that state. It is a completely squatter friendly there's different laws and different structures in different municipals where legally somebody could come in squat for a year and not have to pay the landlord. There's all sorts of crazy laws where homeless people if the hotel's not sold out in certain you know areas are allowing homeless people to come in and if again they don't leave and they don't over rent the hotel they get to stay. There's so much crazy stuff in some of these cities going on it's maddening to someone who does real real estate and likes to be a real landlord and likes to have my eviction strategy on my side. So if you're not going to pay rent and most of my real estate's been done my successful real estate is in the midwest a little bit in the Boise market we've entered in that market three years ago with some partners but a lot in the midwest airbnbs multi-unit things like that. So for those of you who have like $500 to $1,000 and you're really just learning go through my real estate is leverage course again click on that link to grab it any comments or questions that you have go to askworld.com ask questions make requests over there. Another way you could get started are REITs right which is real estate investment trust you can buy you know shares on the stock exchange so typically they're publicly traded syndicates and the other place is you could get into a reggae offering. So reggae offerings are like equity crowdfunding and there's companies doing it really well. The downside I'd see being usually the project you know where I own the project or I own the real estate is I don't want a bunch of little $5,500 investors. I want people that can you know really be a partner $25,000 $50,000. So if you're tolerant of that small amount of money it's just a lot of bookkeeping it's a lot of fintech right which is financial technology that's going to have to track all that. So that's not a cheap entrance into this market but you could be a reggae investor you can invest $500 or $1,000 with some of those companies. So there's some really great companies that do a really good job on their projects and getting investor good returns. So just put your foot in the door. Also you want to just get to the playing field meaning in each town there are brokers there are investors there's people at the planning commissional levels they know what's going on in the town they know the development they know the competition they know within 50 to 100 miles if there's going to be you know big plants coming into town. I have a client in the Carolinas there's a huge new manufacturing plant coming in it's going to create 6,000 new jobs which means 6,000 new houses. Great opportunity to be at the front side of that knowing it's coming. So you've got to get on the ground level in your town. So some of you who've not even got there I mean find out who the biggest investors are. My son just is graduating from Georgia Southern Statesboro Georgia there's about three four or five big players in that town. You know who they are you know the real estate they do you know their access to say the coaches and their wives or the university that kind of runs that whole town and they got the beat and there is a beat on real estate in all the streets. That's why I call it real estate is leverage and I always say you know let's take them to the streets and do tours because I love taking you to the streets and showing you what we did in Oklahoma City Norman Oklahoma and how I became a millionaire on those markets. I didn't have money but I did have a database of people who bought cash flow games for me. So we went back to them and said hey you want to play cash flow in real life this is the market this is how we're going to do it and we would buy blocks actually renovate complete blocks and we've renovated areas of town. How did I do it? I found people who had the beat in town. I had the database and they taught me how to raise capital. I had no idea how to raise capital they did it all I just watched and it was fascinating. I didn't get a lot of the project but I got started I got on a team. So for a lot of you that are beginners get on a team where you can do more work because what successful people don't have is time and you might have time so you do that's how you kind of get an internship an apprenticeship in a team that's already really got the beat of a town. So other things to start is make sure you start understanding due diligence. So when you do due diligence make sure you pick up this book get it on my website get it off Amazon Wealth Cycle Investing there's a whole chapter on money rules due diligence risk analysis how do you start looking at it the combination of this and the gift I'm giving you real estate is leverage. So in due diligence I always have like a basic seven questions so here they are right so number one is the investment congruent with your money rules so do you have money rules is it congruent like do you want to start again in a fourplex you want to start residential you want to start Airbnb where do you want to start there's a lot of places to start you got to pick some and get really good I would not go wide in your strategy I'd get really good like when I first started before I got to the Oklahoma market I did a lot of subject to lease options right where somebody wanted to live in the house so they were single family residents but then over the course of two to three years they'd qualify for the loan and they would be buying and I'd be the bank so I did a lot of that I got really good at that I did lots of volume on that then I moved to bigger apartments and more doors so you kind of got to figure out where you want to be in that strategy so is your strategy congruent with your money rules what's your exit strategy are you here just to sell and flip and get out are you here to stay for cash flow what's your strategy what is big money investing so that's different for all of you some of you writing a $25,000 check or $50,000 check's a big deal for some people writing a quarter million dollar check feels the same to you as writing a $25,000 check so what does it mean in the big money game who has the oversight in this information transparent meaning are you getting clear investor meetings investor updates of what's transparently going on in the project who's got command of the checkbook that's something you want to know and it better not be someone who this is their first rodeo this is their first time taking investor money and actually dealing with investor relations I wouldn't be an investor with the first timer I want to see a resume of success and projects that they know what they're doing are the economics sound is the offer sound is it going to work will a marketing and business plan and the distribution or exit plan all work does the team have the experience to do it if there's not experience on a team for those of you that are really beginners you're going to have a harder time going to say I want some capital and here's my business plan and here's my resume when this is your first project so a lot of coaching and mentoring that I do is you know I allow you with permission and if I like the project to be on the team as the mentor coach consultant to the project but not to tell you what to you know to do when the break any laws around it can the leadership team execute so again what's the leadership team's resume one of my greatest mentors I said money will follow the management team so do you have a good enough team to run the project and is the economics sound so make sure you do that due diligence now before I go into steps two and three on investment capital opm opc and opi I want you to subscribe to my channel click the notification button be out here every day and watch it my subscription base is bigger than my watch hours which means you're here you're not getting notified and you're ignoring me and that's totally illegal you need to watch me every day you need to journal one thing that you're learning a new habit you're going to do because of watching the channel and get your younger kids watching the channel like get them in the right money conversation and bring the money conversation to your kitchen table you get my millionaire maker game but start talking about money in your household folks it's critical to your and their success they're going to be the potential inheritance of your empire you're going to build whatever that is for you so they got to go along and get educated in the plan the other thing I want you to do especially in the area of real estate is those five people that you're surrounded with if they're not doing real estate if they're not on this you know the goal of becoming a millionaire or making money becoming more literate you got to atrophy them like you want to support your environment around you that support is going to make or break your success and they're more powerful than you think and a lot of you you know you'll get together and drink some beers on a Friday night and talk about just ideas if no one in your circles taking ideas to deals and knowing how to really get stuff done make it happen in your life versus let things happen in your life you're gonna have to trade up so a lot of people join our community and integrated wealth systems you join our big table to have that support and have this constant conversation of education and success and being around other successful people now because of the community is also where a lot of investor capital is there's investment capital everywhere there's so much cash available right now looking for great projects because the market's rough right now cryptos are rough so investment capital is everywhere but again you got to go from an idea into paperwork you got to put an investor presentation you got to put a performer together if it's a big enough deal a million or more you got to put a ppm together private placement memorandum so money's available you just can't attract it because you don't have a resume and a team around you so let's talk about that well how else could you go if you're just beginning and you don't have any means or money like leverage your relationships it's why you want to join mentoring groups like our community there's tons and tons of people where you could do deals with them and you know i stand back as a mentor and educator like you guys would do what you want to do but we make sure just ask you a lot of questions you know is the agency set up right is the operating agreement set up right is the exit plan structured properly what's the performers look like so we could just be there kind of as guardrails to make sure things are successful other people's money is hard money lending and it is a fabulous way although it's expensive so i'm still a fan of traditional banks especially local small banks that hold their assets don't sell them off a lot of money in those categories and it's cheaper than hard money but if you have to and you don't have good credit or history you might get a hard money lender if you don't have good credit and you want to go on a mortgage or actually do some you know leveraging you're gonna in collateralization you're gonna have to have somebody with good credit or fundability and opi finally it's other people's iras so self-directed iras there are billions and billions of dollars in iras uninvested so again leverage your relationships see who's got the money who's got the interest if you're willing to do the work and put a team around you it's not going to be difficult to find the capital but again it's a team-made millionaire approach it's not self-made you're not going out here by yourself that's suicide crazy to do a real estate deal by yourself without support of a big community of successful players so stay out here click on the link below on binge watching my youtube channel you can earn $750 of tuition credit towards coaching or mentoring program working with myself or my team so binge watch there's a whole process to it so click on the link learn about it i want you to get really financial and business and real estate smart this year which means every day you got to be out here changing your conversation and your habits with money we'll talk to you tomorrow