If you’re in real estate long enough, you probably know that there will be moments of frustration and emotional lows at first. But the other side is worth it. There are times where I almost gave up because I was unable to close any deal. But eventually, I learned that I should look at real estate investing from the “bigger picture” perspective. I hope you will gain new insight into your business after reading this article.
Here I will identify the three investors levels to you:
My purpose here is to help you create both the passive streams of cash flow needed each month to live an incredible life and to increase your net worth. For those who don’t understand what Cash flow is, it is the money you get each month that you can use to fund your lifestyle, to invest in more appreciating assets, give back to society and do greater good.
What you need to know about net worth is that it gives you long-term financial health. From my perspective, I see real estate investors needing to grow through three distinct levels. See where you fall and, more importantly, where you want to end up.
Level One investors
In this level they’ve proven that real estate doesn’t just work for other people, but it works the other way around. Level One investors have the certainty that real estate will be their proven path to financial success. They understand and realized that they still have a lot to learn in this path, but they believed that they can do it.
Level Two investors
Now level two is where you get a little deeper into the real estate industry where you need to focus on mastering the five core skills of real estate investing and build a business to support your real estate portfolio. When you reach Level Two you are looking at a net cash flow of at least $5,000 to $50,000 per MONTH and net worth at about $215,000 or more. That’s a lot of money and it takes time to get there. Most of them may think that Level two is the maximum but there lies another level where very few are able to make it.
Level Three investors
Level three is where the big boys stand. Imagine you have your own empire in such a way that you earn massive income without having to be involved in the day to day direction of the business. Level Three investors earn at least as much as Level Two investors, but they do it passively what it means is that they work less than ten hours per MONTH. And all they have to do is wait and collect money. Their property portfolio and business work without them needing to be there to run things. I am sure this is where you and I both want to be right? Good. Continue reading and you’ll find out how to improve yourself.
Key steps to moving through the investor levels
Level One: Let me simplify things for you. In this level is where you get out of THINKING mode and into DOING mode. This means going out and meeting with at least three sellers–this week! Or more. Remember the more you do the higher your probability of success.
Second, take initiative to learn from the best coaches and teachers. Notice that this learning happens AFTER you’ve broken through the inertia of inaction. Learn from the best, but make sure you are really willing to DO first.
Third, stop and reflect on your experiences on a regular basis. This will help you focus and identify what went wrong and how you can improve better. Repeat this regularly so it becomes a habit of success for you.
Level Two: Here are the five core skills you have to master:
How to consistently find motivated sellers
How to be a master negotiator
How to quickly analyze if it’s a good deal or not
How to structure a variety of deals: short sales, lease options, cash sales, “subject to” deals, selling on a wrap mortgage
How to write up and have a proper understanding of the deals.
Level Three: The key here is belief systems. This is a very important aspect that many neglected. The reason why I said it’s important is that only when your belief is strong and determine you’re able to walk through the obstacles.
I hope this guide provides some insight to you and all the best in your real estate journey!