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Sometimes a team can accomplish far more than a group of lone individuals. For example, cyclists in the Tour de France take turns riding at the front of their group, decreasing the wind for those behind them. Wolves hunt in packs to take down animals 20 times their size. And for those of us who were children of the ’90s, we all rememberDucks Fly Together.

This brings up another team that can accomplish amazing things — not a team of people, but a team of benefits which, when combined, can help you achieve your greatest financial goals. Specifically, I want to talk about real estate.

I’m a real estate investor, and I firmly believe that real estate is the best traditional investment on Planet Earth today. However, just because you buy a piece of real estate doesn’t mean you’re going to make money.

As I explain in The Book on Rental Property Investing, big wealth is built through real estate investing by capitalizing on something I call “the four wealth generators of real estate.” Alone, each of these benefits can help you make more money, but together they’ll make you rich.

evaluate-property

1. Cash flow

Cash flow is the extra profit left over after all of the expenses have been paid on a property. For example, if my rental property produced $2,000 in income and my expenses came to $1,700, my cash flow would be $300 that month.

Related: One Simple Habit the Vast Majority of Wealthy People Practice Every Single Day

Now, I know a lot of you are saying, “Three hundred dollars is not going to make me a millionaire.”

Probably not. But remember, we are just talking about one of the wealth generators. There are still three more to go!

Additionally, that $300 might be from just one property. If I owned ten similar units with the same cash flow, that’s $3,000 per month. If I owned 100 units, that’s $30,000 per month. This cash flow can go a long way toward helping you quit your job — or helping you save for a future big purchase, or retire wealthier.

(click to continue reading on BiggerPockets)

Despite what you might think, I was not born knowing how to invest in real estate.

I know, I know. Shocking, right?

Of course, no one knows how to invest in real estate innately! They must learn.

Now, if you’ve been around the real estate investing industry for any length of time, no doubt you’ve heard the term “mentor” before.

No, I’m not talking about some paid coach or guru course.

I’m talking about real-life, local individuals who can help a new investor on their journey toward success.

A mentor can show you what’s working for them, what is not working for them, share the lessons and mistakes they’ve made, make introductions to others in the real estate market, and provide real-time feedback.

Having a mentor can truly be life-changing — and today I want to introduce you to one of mine.

Kyle is an airline pilot who started investing in real estate almost by accident. Over the years, he’s acquired a number of properties and made a lot of money from real estate.

In this video interview (with Mp3 version and text transcripts as well!), Kyle and I talk about how he got started (almost on accident!), how he transitioned from flipping to rental properties, and why he decided to help out a young, dumb kid named Brandon. :)

If you are a fan of the BiggerPockets Podcast, I think you’ll love this interview and will learn a lot.

So without further ado, here’s my interview with Kyle:

 

(click to continue reading on BiggerPockets)

 

The 7 Seemingly Innocent Habits Holding You Back From Success

What big things do you want to accomplish this year? Are you going to start a new business? Double the revenue in your existing company? Write a best-selling book? Lose 50 pounds?

Goals are great, and you should definitely have them. But goals can easily be sidetracked when something bigger comes into the picture: habits.

Now, of course there are plenty of good habits that an entrepreneur should have . . . but what about the bad ones? We all know some habits are obviously bad, like smoking or excessive drinking. But for entrepreneurs, the distinction between “good” and “bad” habits is often blurry and situational.

Therefore, I want to lay out seven habits that, although seemingly innocent, can actually hurt your chances of achieving your goals this year.

But first…

***Hey, you! Yes, you! If you are reading this post, you’re likely interested in growing your business and building wealth. If so, I want to invite you to this week’s BiggerPockets Webinar, How to Use BiggerPockets to Become a Rockstar Real Estate Investor. We’ll be talking about how to harness all the tools BP has to offer in order to find partners, lenders and sellers, build your reputation as an investor, and much more! Hope you can make it! And now back to the post!***

1. Checking email

How many times a day do you check your email? More than once? That’s probably too much.

Email tends to be the thing people do when they don’t want to do what they should be doing.

I know you think you need to be in your email throughout the day, but chances are, your addiction results in your putting off the one thing in your life you really should be focused on right now. So, make an effort to reduce the amount of times you check your email.

Related: 10 Seemingly Harmless Habits That Sabotage Ambitious Millennials

Set up smart “filtering” criteria, unsubscribe from email newsletters you no longer need to read (I just unsubscribed from over 1,000 newsletters, using Unroll.me), and get people used to your responding just once a day.

2. Logging onto Social media

Let’s be honest: We all spend way too much time on social media.

Whether your social media habit leads to your sitting “in the john” a bit too long, or to a quick status update that turns into 35 minutes of mindless scrolling through your newsfeed, this habit can quickly take over the limited time you have to be productive.

So, do yourself a favor and limit the time you spend on social media.

For me, Facebook is my “go-to time-waster.” That’s why I installed theFacebook Newsfeed Eradicator, which essentially shuts off the Facebook newsfeed on my laptop. This alone has saved me several hours per week.

3. Procrastinating

Yes, procrastination is a habit. It’s often much easier to say “tomorrow” than “now.” But the things we procrastinate about are often the very things that most need to be done now.

So, instead, make it a habit to “time-block” your most important things to ensure they get done on schedule today, not tomorrow. For more on-time blocking ideas, don’t miss “This Productivity Hack Completely Changed My Life, and It Can Improve Yours.”

(click to continue reading on BiggerPockets)

Want to Lose All Your Money & Cry Yourself to Sleep? Make These 4 Newbie Mistakes!

You know that I love you, right?

Maybe not the “I want to have your baby” kind of love, but the “I’m about to yell at you, and I’m doing it because I care” kind of love.

Don’t you feel special?

Now, as the title suggests, this post is geared toward newbies.

But what’s a newbie?

I would define “newbie” as anyone who doesn’t feel like they “know it all” in real estate yet.

Yes, that means you. And me. And of course, Ben Leybovich. (But not Brian Burke, ’cause that guy really does know it all.)

So, really, this post is for anyone who is trying to build their real estate empire.

That means you! So keep reading.

These are the four mistakes newbies can’t seem to help making — but not if I have anything to say about it!

1.) “I Can Do It All Myself! I’m Superman!”

As a real estate investor, you wear a LOT of hats. giphy

One day you are a home inspector. The next day a master negotiator. The next a marketing wizard. Then a manager. Sometimes a plumber.

And that’s not a bad thing, necessarily. When you first start, you don’t have a lot of cash to use to hire other people, and you need to use what you have.

However…

The problem is newbies tend to stay in that state for FAR too long.

Like, years.

If you are trying to build a real estate business, begin thinking NOW about the systems you can outsource. Can you hire someone to clean toilets while you look for deals? Can you hire someone to answer phone calls and pay them on a per-deal basis? Can you buy such great deals that the cash flow covers management?

(And yes, Ben, you can buy properties that cash flow enough to cover management! You just gotta look harder!)

(click to continue reading on BiggerPockets)

Single family homes can be a great investment!

They are often far easier to manage than multifamily, they usually rise in value fairly quickly, and there are numerous ways to finance such a purchase.

But for most people, the process to buy a single family home is still too confusing.

That’s why today I decided to boil down the process for buying a single family home intoseven distinct “vital steps.” Use this guide as a sort of “road map” for your future as you search for and buy your next single family home.

Let’s get to the seven vital steps to buying a single family rental home!

tax-efficient-business

1. Do Your Research

There are a LOT of single family homes out there.

According to Census Bureau: 133,957,180.

So, when you decide that you want to buy a single family rental house, you need to narrow down the options just a tad. This is why the first step is research. 

Now, research includes two different categories:

  • Education: Do you know what you are doing? If not, there are plenty of articles,podcasts, webinars, and books here on BiggerPockets that can help you with that.
  • Location: Do you know exactly where you want to buy? This will dramatically help you narrow down the possible choices.

I wish I could simply tell you the best kind of single family rental house to buy — but I would be lying.

Because I don’t know you!

The perfect investment is one that helps you best accomplish your goals. (Tweet that!)

So what do you want? Start there and work backward.

  • Maybe you want to buy just a few really nice houses in really nice areas, and wait for appreciation to double the value of those homes.
  • Maybe you want to buy low-income housing and let all the cash flow allow you to quit your job.
  • Maybe something in between.

The point is you need to do some research before you jump in. But assuming you’ve done that, or at least are doing it, let’s move on.

(click to continue reading on BiggerPockets)

House Flipping: 5 Vital Tips for Success (Based on My Mistakes!)

House flipping can be a lot of fun, right?

You get to turn something ugly into something beautiful.

You get to hone your design skills and impress your friends.

And, let’s be honest…

You can make a lot of money.

But house flipping is not as easy as the TV shows make it seem!

You know that, right?

Good! You are already farther along the path than most flipping newbies.

House flipping can be fun, challenging, and profitable — but it can also be dangerous. Many people have gone bankrupt because they decided to get into house flipping.

I’ve lost money on flips that didn’t turn out the way I wanted.

It sucks.

However, like any business venture, practice makes perfect.

Ok, that’s a lie. You’ll never be perfect at house flipping. But at least “practice makes better.”

Today I want to talk about five vital tips for house flipping success that I wish I had known when I first started on my house flipping journey. Knowing these would have saved me hundreds of hours of wasted time and thousands in lost dollars.

Let’s make sure you avoid that and find incredible success on your house flipping journey.

But first…

*** Hey, you! Yes, you! If you are reading this post, you must like the idea of house flipping. If so, I want to invite you to this week’s BiggerPockets Webinar, How to Analyze a Fix and Flip Deal (And Avoid Getting Burned!). We’ll be talking about the best ways to do the math, which is tip #1 on this list! Hope you can make it! And now back to the post!)***

Okay, let’s get to the five vital tips for house flipping success

1. Understand the Math Behind House Flipping

Before the paint colors, before the new countertops, before the demolition…

There is the math.

The math is like a crystal ball, helping you see the future.

It shows you the right improvements to make.

It guides you to the best neighborhoods.

It helps you know if you will succeed or fail.

However, so many people struggle with the math. They see a dilapidated house and start thinking about all the beautiful things they could do to the house, but they don’t see the math behind it. Does it really make sense, financially? Is this house really going to provide a great profit? Should you really do this flip?

The math helps you answer those questions. The math helps you gain confidence. The math helps you avoid mistakes.

The math is not as simple as the TV shows make it seem, but it’s also not rocket science either. It’s simply a matter of knowing ALL of your expenses and subtracting them from your ultimate profit.

There are many blog posts here on BiggerPockets about analyzing a flip so I’m not going to dive deep into the topic here. Besides, I’m doing a 90-minute LIVE webinar on this very topic this week. (Can you make it? If so, click here to register.)

Also, if you are not using the BiggerPockets House Flipping Calculator… you are missing out. Seriously, it’ll save you a dozen hours a month analyzing deals!

(click to continue reading on BiggerPockets)

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