How real estate investing is like traveling ….
#1: People assume it’s expensive.
When most people hear that you either traveled to another country, or purchased a rental property, they have the same response: “How could you afford it?”
That’s a natural reply from someone who’s never dug deeply into these topics. People often assume that travel / real estate is an expensive undertaking, in which travelers are staying at luxury hotels and investors are purchasing luxury McMansions. “Normal people” can’t travel. “Normal people” can’t invest in real estate. Right?
The reality is that both can cost a lot less than you might imagine.
Here’s a 4 minute, 38 second video that I made, chatting about this idea. This is the introduction video to one of the modules inside of my course, Your First Rental Property. (Click the gear icon on the bottom-right of the screen to watch it at 1.5x or 2x speed.)
#2: It’s a complex, multifaceted life skill.
It’s funny to think about traveling as a “skill.” It’s just a consumer purchase, correct? Another mile on the hedonistic treadmill?
Nope. Travel — and I’m talking about real, authentic, slow, immersive, exploratory travel — isn’t a purchase, it’s a way of life. You don’t just parachute in, snap some photos and hightail it out of there; you become part of the fabric of the local community.
This requires a new skillset. You learn to adapt in cultures in which you don’t speak the language. You learn to navigate in remote places where there’s no wifi or cell signal, no GPS to show you the way. You learn how to make friends with people with whom, on the surface, you might assume you have nothing in common.
Travel teaches you about yourself, while forcing you to become a more patient, creative, flexible person.
Your first rental property, likewise, isn’t a purchase, it’s a new identity. You can’t just buy a house, assume that “if the rent covers the mortgage I’ll be fine,” and then stick some random Craigslist tenant in there. That’s a strategy that yields expensive mistakes.
Instead, you craft multiple new skillsets. You learn how to analyze properties, using rigorous math and formulas. You learn how to build an all-star team of professionals who support you. You begin to see properties not as they are, but as they could be. You learn how to make crucial renovation decisions that can create the difference between “meh” returns and “whoa” returns.
Real estate investing builds your analytic and creative skills. You emerge more competent and more confident.
#3: It’s a path to financial independence.
Many people accelerate their journey to financial independence through “geographic arbitrage” — earning money in U.S. dollars, and then moving to Costa Rica or Thailand or Bali or Ecuador, where the cost of living is significantly cheaper.
That’s not a requirement, of course. You can reach FI without relocating your family to Zagreb. But it’s an attractive option, if it fits your lifestyle.
Likewise, many people accelerate their progress towards FI through investing in rental properties, knowing that six percent is the new four percent.
Again, it’s not a requirement. Real estate is one of many options, and you can certainly reach FI on index funds alone. But it’s a nice diversifier, and a stable, cash-flow-centric asset that’s great for people interested in an early retirement.
I spent three years building, rigorously testing, and improving the Your First Rental Property course. I’ve gathered feedback from two rounds of beta-testers to make sure that I released a course that’s engaging, educational and effective.
The course is 10 weeks long and highly interactive. You’ll receive videos, quizzes, checklists, worksheets, flowcharts, word-for-word scripts you can use when you’re making calls and sending emails, and access to mastermind forums. We also host six (6) live Office Hours Q&A sessions in which you can directly ask me any real estate investing question that’s on your mind.
While the deadline to enroll has passed, if you’re interested in learning more, you can sign up to our VIP list to receive the latest updates, like when the course will be open for enrollment again (October 2019 at the earliest). As a bonus, you’ll also receive some awesome real estate material excerpted from the course!
We hope to see you there!