Lessons from a seasoned Pro, Making Multiple Offers and Focusing on Wealth Building vs. a J.O.B.
When it comes to real estate investing, one of the things that I have realized is that you have to have an open mind and be ready to learn at all times. This business is so large and complex that you can’t go into it thinking that you know everything – you have to be ready to learn from others who have been where you are and are now where you want to be.
So, with that in mind, I’m interviewing Steve Carlson in today’s video. I’m always looking for those pearls of wisdom from some of the best of the best in the industry, and Steve is one of the realest and most straightforward guys in the game. I pick his brain looking to see what kind of advice he has for real estate investors of all kinds so that they can learn from his experiences.
Before I get into the meat of the video, a little background on Steve. He runs his business out of San Antonio, and he’s been in real estate since the mid-’90s. He went to school to be an engineer, but he wanted to make money and accrue wealth and realized that real estate was the best way to get there.
Steve was doing real estate on the side for many years, but it wasn’t until about 2009 when he went full time. He does a little bit of everything in the industry, and he’s a beast when it comes to running an efficient operation. He’s a veritable treasure trove of information, and I’m happy to have him here so that we can all become a little wiser.
I want you to watch the whole video, but here are some of the highlights of what we discussed.
6:35 – When the Market Turns, Wealth is Redistributed
I’ve been talking about the market turning for a while now, and that’s because everyone who knows this business is ready for another significant downturn. One of the surest signs that real estate will fluctuate is when everyone and their mother is getting into the market, and now we’re in that “euphoric” stage. Money is easier to come by, but deals are harder to make because there’s more competition, and sellers have dollar signs in their eyes.
I mentioned that Steve really became full-time in real estate in 2009, which was just after the crash of ‘08. At that time, he wanted to get his hands on as many properties as possible, and since everyone was trying to liquidate stock, he was able to make some great deals.
Overall, if you’re prepared and know what to expect, you can make a fortune when the market turns. Real estate is a long-term industry, meaning that if you plan it right and have a goal in mind (more on that later), you can use this shift to your advantage. Steve and I have done so, and you can too. Don’t be scared of a downturn – leverage it instead.
11:25 – Focus, Commitment, Implementation
A significant reason why we’re in the “euphoric” stage of real estate right now is that everyone is trying to make money and get rich quick. Guys like Steve and myself have been able to accrue long-term and generational wealth, but it’s not going to happen overnight, and it’s not going to happen without a lot of work.
All too often, new investors don’t realize how much time and energy it takes to make money in this industry. As Steve puts it, real estate is simple, but it’s not easy. For a long time, he was working full time and putting every hour he could into his business. Steve wasn’t able to strike gold and cash out immediately. Remember, his first sale was in the ’90s, but it wasn’t until 2009 when he focused exclusively on real estate.
As an investor, you have to have three components if you want to succeed – focus, commitment, and implementation. You have to be committed to making it work, which means putting in long hours in the beginning until you can pass it off to qualified people. You have to stay focused on what you’re trying to do. It’s all too easy to fall down some rabbit holes and get involved in a lot of different things that may or may not pan out. Just because something looks like an opportunity doesn’t mean it’s the right move for you.
Finally, implementation will get you to where you need to go. Having the drive and focus is one thing, but unless you have the tools and expertise to make the best deals and get the right money coming in, you won’t be able to accrue long-term wealth.
14:00 – Cash Now, Cash Flow, Cash Later
Before I wrap up, I want to illustrate that there are three primary ways to make money in real estate. Cash now is when you flip houses and make an immediate profit. Cash flow is when you have rental properties that are generating money all the time. Cash later is investing in high-quality real estate that will appreciate over the long-term so that you can earn an even bigger profit.
Mastering all three of these elements will ensure that you have generational wealth, and that should be your endgame with this business. If not, then what are you in real estate for?
And if you’re ready to really pursue that “generational wealth” then I’d like to invite you to join REIvault and apply to see if you qualify.