200th Episode Celebration: Lessons Learned in Real Estate and Investing Mindset

Commercial Real Estate Investing From A-Z

Today we celebrate our 200th episode of the Commercial Real Estate Investing From A-Z podcast, I will share some of my most recent learnings and observations, some are in mindset, some are related to real estate investing.

Read this entire interview here: https://tinyurl.com/2vy2tnhz

Real Estate

Every single deal has multiple problems you will have to overcome, a friend of mine that has been building multi family projects in California for several years told me that for each problem you must "block and tackle”, and I have never heard anyone say that there was an “easy” deal, especially in development. In fact, they say “if there was ever an easy deal, they all happened before I started my career, we were only left with the difficult ones”.

Another thing I learned is that buying a portfolio of properties for a discount is a fantastic way to invest. You not only get a discount on them, but you can turn around and sell a couple of them individually for a higher price and keep the other properties. As far as the car washes, I got 3 of them, and a self storage facility, and I got a discount on everything because I bought a portfolio, plus I negotiated a price reduction. And today, 3.5 years later, with the sale of that 1 car wash, I could have paid the entire mortgage for the 3 car washes and would have had money left.

I have also been working on partnerships with people that know their field very well but don’t have cash to invest, for example employees working at commercial real estate firms that are very good at what they do and haven’t thought about doing their own thing, or incredibly driven individuals. Say, you have 5 partners that are very capable, each working on a deal, yes your slice of the pie is smaller, but you now have 5 properties that you’re working on with very capable people. Regarding partnerships, you must do your due diligence on them, for me, it works to get to know them over time, see how they act and react to certain hurdles, see their integrity, and then I will partner up with them after I know them for a while.

Mindset

You may already know this first one and that is “Readers are leaders” indeed, I try observe what common traits highly successful people have, a lot of them did read a lot in their childhood, some of them started reading in their adult years, but what they have in common is that they do read a lot. The reason that this makes sense is because we can read one book and, no matter how amazing it was, we forget most of what we read. However, when we have “reading” as a regular thing in our lives, a lot of the messages of these books are very similar, they’re just written in different ways, and it’s through repetition that this information begins to stay with you for the long run.

Another trait that I have observed from some very successful people is that they experienced different extremes in their lives, wether they experienced poverty, or lived in a country that had a lot of problems, or even if they were born with a silver spoon but their parents made sure that in the summer time, they’d spend half of the time working at a farm doing hard labor, and the other half with the time they’d spend at one of their parent’s friends companies doing an internship. The common trait was that they had seen the good life and the bad life and that made them very driven. They are also very curious people and good listeners.

Earlier this year I realized I was becoming very negative with all that I was learning about what is happening to our country, I was not sure if this is how it has always been and we now just have more access to this information, or was it indeed getting worse. I have my personal opinions on that, but I decided to delete social media from my phone and I can attest that I have been a lot happier ever since. I still check one social media once in a while on my laptop, but none of the others and life has been wonderful.

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