The Three Levels of Real Estate Investors

I had a great discussion with a mentorship student yesterday who shared with me how he and his wife are selling their third house and will net $45,000. It stimulated me because I had talked with them over a year ago when they had a tenant/buyer back out of a contract, and they were at a touching low.

Let’s face it, if you’re in real estate long adequate, you will have moments of frustration and moving lows. But the other side is so value it. You have to appear at real estate investing from the “Big Picture” perspective. I expect you will gain new insight to your business for your long-term success.

The three investor levels:

The finish goal my partner, Peter Conti, and I have for you is that you create both the passive streams of cash flow desired each month to live an incredible life, AND to build a major net worth. It is the grouping of these two financial markers—cash flow and net value—that guarantee you financial victory over time.

Cash flow is the money you get every month that you can use to fund your way of life, to invest in more appreciating assets, and you can use to split for the greater good.

Net value gives you long-term financial health. It’s fairness you can use to convert into lump sums of money. Its capital you can change into cash flow. It is constancy and an important long-term piece of financial profusion.

From my viewpoint, I see real estate investors needing to produce through three distinct levels. See where you fall and, extra importantly, where you want to end up.

First Level investors

They’ve confirmed that real estate doesn’t just work for extra people, but that it works for them. They have done this the simplest way-by making a significant income on their first few deals. First Level investors have the certainty that real estate will be their established path to financial success. They know they still have a lot to study, but they’ve seen that they can do it.

Second Level investors

Level Two is all about mastering the five center skills of real estate investing and building a trade to support a real estate portfolio. Second Level investors have created a net cash pour of $5,000 to $50,000 per MONTH and an raise in their net worth $250,000 or more per year.

Most investor’s think Second Level investing is all there is. They aren’t even conscious that another level exists, and they stop short. But there is so much additional that’s possible for them, and the rewards are value the effort.

Third Level investors

Imagine having built your mini-empire in such a mode that you get massive income without having to be concerned in the day to day direction of the business. Third Level investors earn at least as much as Second Level investors, but they do it inactively.

This means Third Level investors work fewer than ten hours per MONTH. Their possessions portfolio and business work without them needing to be there to run effects. I’ll share some opinion on the key steps to progress during each of these three levels.

Key steps to affecting through the investor levels

Level One: Since this level is about proving that real estate mechanism, you have three major hurdles to “climb." First, to gain out of THINKING mode and into DOING mode. This means going out and gathering with at least three sellers--this week!

One of the reasons we make each mentorship student go out and meet with sellers right there at the teaching is it’s too easy to let fear push you to rationalize away your dreams: “Oh I’m too busy.” Or, “I’m not prepared.” You can either have your reasons or your dreams, but you rarely get both.

Second, study from the best coaches and teachers. Notice that this knowledge happens AFTER you’ve broken through the inactivity of inaction. Learn from the top, but make sure you are truly willing to DO first.

Third, stop and study from your experiences on a regular basis. This triangle of Do, Learn, Regroup; Do, Learn, Regroup is the key to your original success.

Level Two: Here are the five center skills you have to master:

How to consistently find aggravated sellers

How to be a master representative

How to quickly examine deals to know the deals from the dogs

How to structure a multiplicity of deals: short sales, lease options, cash sales, "subject to" deals, selling on a bind mortgage…

How to write up the deals and appreciate the contract element of investing

Level Three: The key here is faith systems. There actually is no difference in skills other than the attitude that support you seeing the opportunities that live all around for BIG deals. At a confident point it’s actually easier to buy a shopping mall than it is to buy five additional houses. And you’ll make 10-fold to 100-fold extra cash flow from the shopping mall, potentially.