Mark has been investing in real estate for many years and he hosts an investment meeting every Friday for our team. Investing in real estate is a no-brainer as a long-term investment. It's also something tangible that you can be involved with regularly. Sure, some people own stocks that they manage themselves. But with real estate, you can physically drive by your investment to check on things or work on it.
For Sarah, she has very specific goals for her real estate investments. She wants to own an investment property for each child. 3 kids = 3 properties. The financial gains from these properties can go towards their college funds or other. Their kids can be involved in those properties and they mean something.
Mark has been on the hunt for a commercial space for a year and a half. He's been looking for something very specific to serve as both our new team headquarters but to also be a second location for his co-working business with rentable office space. He was under contract twice before finding the perfect fit. He was patient and didn't rush the process.
But where do you get started? Today, Mark goes for what he describes as Class A properties. He's looking for premium properties in premiere locations. But he started with Class C properties in less desirable areas. You need to cut your teeth on Class C, so you can learn along the way and have less skin in the game. Build your way up. Mistakes that you make on Class C will cost you less than they would on Class A.
You also have to train yourself to run your investments on the numbers. You have to be able to remove the emotional side of things. Even if you are emotionally attracted to a property, you shouldn't purchase it if the numbers just don't work. Run the numbers of purchase price, renovation cost, tenant figures, etc. Be disciplined and stick to your plan.
