Episode 4: Learning By Doing Is Better Than Learning From a Textbook
I have a doctorate degree, am a teacher by trade, and was a former school principal. I taught by textbook a lot, had them read, told them stories, and had them watch something. I'm amazed by the times I had them DO something, and the growth that created.
In the real estate space, there are mentors, teachers, and authors. Education is power. Students learn a lot more when you get them involved and engaged in doing the work. Do a deal and invest in rental real estate. Do more than just reading, talking, and investigating.
You have the time to invest in real estate, but haven't. You have the money to invest, but just haven't. You've talked about doing deals, but haven't done one yet. You're afraid of making an error, being irresponsible, or thinking you don't know enough.
[5:00] You will learn so much more by doing a deal, than sitting on the sidelines. My first deal was a low-income property in a bad area. I took the plunge, bought the house for $15,000, and put the renovations on a credit card. I learned way more from that first deal than from reading a book.
[7:30] The property needed a new roof, new bathroom, foundation issues, new walls, new paint, new kitchen cabinets. This taught me specific things to look for (a checklist) of what to look for during an inspection before buying, so I can accurately estimate rehab costs. If I use someone else's checklist, I might waste money or focus on the wrong things.
[9:00] Doing it yourself allows you to create your own checklist that meets the criteria that you're looking for. Along the way, I dealt with contractors who expected daily payment. I learned a lot getting started. I learned by talking to the neighbors about the neighborhood, what the house looked like, and stepping into some of their homes. Asking what they thought about their landlords. I thought about money-making improvements to make, versus what would not produce a good return.
[10:30] This first house taught me you could buy a house cheap, renovate it, pull your investment out, refinance, get a renter, and receive cashflow every month. That was before I ever read a book on real estate.
[11:30] Learning by doing is way better than a textbook. Think about how you're learning. Is it mostly from books and audio? Talking to others about their deals? Or are you actively doing deals, looking for properties that cashflow? Looking at ways to find funding? Actively flipping properties, dealing with tenants and property managers? Are you actively real estate investing, or just looking? If only you're looking, do something to get involved. Examine at least 10 deals a day. Make at least 30 offers on properties per month. Do the work and you'll learn more than simply talking about it.