Real Estate Investing Tips: Don’t Fall For the Latest “Get Rich Quick” Scheme

I’ve learned the hard way why it’s so critical to have a trusted advisor and partner when you buy an investment property, especially early on. 

I got my real estate license in Springfield, Ohio in early 2001. Within three months, I bought my first rental property. 

Did I consult my broker? No. Did I consult any other people who are investing in real estate? No. 

I genuinely thought I was smarter than the rest of them. 

I went out and bought this thing because I had the money, I had the loan, and it was something I wanted to do. And yes, I blame myself, but I also have to blame a book because it made me too smart for my own good. In the aftermath, I made every mistake someone could make. 

I remember sitting on my back porch when we were living on Long Island and I was still working for Target. At the time, I was ready to get out of retail; I didn’t want to work for Corporate America anymore. As I’ve said before, I was a terrible employee and felt the need to do something for myself. So, I started reading this book called Rich Dad, Poor Dad.

While I was reading through it, I couldn’t help but think, “Oh my God, anybody can do this. I’m going to be able to pull this off. I’m going to go out and buy a whole bunch of real estate, and I’m going to get all this passive income. I’m going to get rich, and it’s just going to be so simple. It’s going to be incredible.” 

Well, it didn’t turn out that way. I’m sure if I went back and read Kiyosaki’s book today, I might get a different impression of it, but I got sucked in because I wanted to be sucked in. I wanted something new and different, and residential real estate looked like a great place to land after working at Target stores for all those years. It inspired me and got me going – but it did not prepare me for the realities of owning my first handful of residential investment real estate properties. 

Here’s my advice: Beware of the dangers and perils of the late-night infomercial and beware of the perils and dangers of the latest get-rich-quick investment book. 

They’re out there. There are a ton of people out there who are telling folks that this is an easy way to make a fortune, get monthly income, mailbox money, and leave a legacy behind. 

And it can be – if you do it right. It’s never going to be a get-rich-quick situation, however. 

All of my early mistakes revolved around the fact that I didn’t know what the hell I was doing when I purchased those properties, so I overpaid. Beyond that, I didn’t understand what it was going to take to get a property back in service or maintain it. I just thought I was the smartest guy in the world – and that’s what some of these books and infomercials are very good at communicating to their audiences. 

You don’t know what you don’t know. As you’re learning how to become a successful real estate investor, getting help is essential. But that’s not all. 

When you’re expanding your portfolio, it’s important to recognize the role luck plays in the bigger picture. 

Sometimes, people get lucky the first couple of times, and through no fault of their own, things work out very well. When you’re on top and doing well, it makes sense to go out and buy some more, right?

The fact is, when you’re expanding your portfolio, the last thing you want to do is put all your hard-earned money at risk over a mistake. 

Get yourself a partner, a collaborator, preferably somebody who’s going to help you manage it so they have a vested interest in helping you buy it. 

When it comes time to expand your portfolio, I believe it’s critical that whoever will be looking after your property for the long term needs to be involved upfront in purchasing that property. You need to get their perspective before you dive in with your hard-earned cash.

Working With Professionals Gives You A HUGE Advantage

I don’t want anyone to interpret that Invest with ROOST is a money grab. Yes, it is important that we offer a service in the market that people value and that we get paid for it. After all, we’re professionals. 

The fact of the matter is, it doesn’t make sense for a real estate investor to not do everything they can to make sure that they’re going to buy that property the first time. This way, you have a better chance that it will pay off – and cash will flow into your pocket throughout the life of that property. We’re able to do that. 

If we can work with our owner group and become market makers to facilitate a connection between you and somebody in our group who wants to sell, the entire process is going to be faster and easier. Another fantastic part of working with investors is the fact that the best investors we work with go by the numbers.

With them, there’s no emotional attachment to these properties. They bought a property to do something; it did something. Now, they’re at a point where they feel it’s time to move on to something else. That makes our job quite a bit easier, of course, and it makes your job acquiring a property quite a bit easier. 

I can’t undersell how critical it is that you’re able to get the leases at a moment’s notice because we already have them. You can also get the financials at a moment’s notice because we have them. 

All these factors and accessibility make it easier for you to make an informed decision. 

Final Thoughts

It’s tempting to think you can cut out the middleman and do the work yourself, especially if you’ve been lucky and achieved success on your own. However, you can’t underestimate the value that professionals bring to the table – and the priceless advice they have to offer, no matter your level of experience. Real estate investing, like any other type of investment, carries some level of risk. We don’t have to take unnecessary risks – and that’s where knowledge comes into the picture. 

Armed with knowledge, you’ll be able to make smarter investing decisions, mitigating some of that unwanted risk. Your partner – a licensed real estate professional and, ideally, your future property manager – will be invested in the process with you because they win when you win. Everyone likes winning. 

I think the value added by working with Invest with ROOST kind of speaks for itself. However, we want to prove to you how valuable that is, which is the purpose of this guide. 

The last thing I want to do is continue to sign up owners who are coming to us with a bad situation that we could have helped them with upfront. That’s what I want to change for us – and what I want to change for you. 

When you’re ready to start expanding your empire, give us a call. We’d love to show you how we can help you achieve your goals as a property investor.