7 Rules I Learned After Going Broke in Real Estate Investing

Joseph Meyer
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How I Got Started in Real Estate

I should tell you that I’m a typical American. I always wanted to own a home. So after graduating from college, I bought one with the little amount of money my parents were able to help me. Little did I know…

I had bought a piece of real estate I couldn’t afford, and with the monthly payments I just couldn’t keep up. So I, like millions of other Americans, walked away from a home that was in foreclosure.

I started in the real estate industry as a broke investor, but I knew I had to change directions. I was getting sick of working a dead end job for the American dream.

I decided to get financially fit. I studied the wealthy and I started following the strategies of the rich, not the crowd, and my success was quick…

Here are a few of the things that helped me turn my life around, became financially secure, and changed my future for good…

{1}. Teach the Rich How to Be Wealthy
{2}. The Best Way to Use Your Experience
{3}. Change Your Habits Before You Change Your Lifestyle
{4}. Understanding What the Well-Off Are Willing to Sacrifice to Be Wealthy
{5}. What the Wealthy Actually Look For and Where They Look
{6}. The Biggest Waste of Time in the Real Estate World

My Real Estate Empire Starts to Crumble

I was over the moon when I found the condo. It was a hip, trendy spot in downtown Vancouver, and I was excited to be part of the fantastic new restaurant opening down the street. The condo would be a perfect new investment with a soaring rent; it was exactly what I was looking for.

I threw up a website, Airbnb, and got to work listing the property immediately. My plan was to sell the property in 3 months, and then roll over into the next investment.

And I was surprised at how quickly the properties were selling. Things were going smoother than I had ever imagined.

And then one day, I was celebrating after signing a sale, and I stumbled upon the right number. I realized that my returns were about 5%. That’s it.

Real Estate Investing Myths I Learned the Hard Way

As someone who’s not afraid to make mistakes and try new things, I’ve learned a lot from my career in real estate … most of it the hard way!

In real estate investing, there are no guarantees, but the guy who quits because he doesn’t like his situation has already lost. I stayed, I kept trying, and I learned seven valuable lessons.

Think for yourself

When you’re trying to get an education in anything, you have to be skeptical and you have to think for yourself. You must constantly be questioning yourself and challenging your concepts.

Question yourself every time you make a decision as a business person. Ask yourself why you’re doing what you’re doing, and question the money you’re spending. A lot of my money problems stem from the fact that I would buy into whatever someone was selling.

Use your network

7 Rules to do Real Estate Investing (the right way)

I've done real estate investing in my previous life and most of the time, it was challenging. It's difficult to find a good property and then manage the REO property for sometimes that will take months or years.

The toughest thing is that you can't sell the property at all as soon as you've bought. Since you have to comply with the lender's requirement and make sure you have enough funds to pay for all the expenses including utility bills and taxes, you either need to live at the property for a while or sell it to a tenant.

Here is what I learned after going broke:

Picture your business plan carefully.

Before you put your hard-earned money to work, be sure you've thought through to every detail.

You need to know what investors look for in a property and what they're willing to finance. If you don't, your ambitions may overwhelm your expectations.

Spend more time researching than taking action.

Spend a lot of time researching on the property that you intend to buy. Visit the property often both during the day and at night. Note down the details on what you see and what is needed there.

Strive to be patient.