Hey there - thanks for checking out another issue of the Secret Empire newsletter! I built this newsletter to help busy professionals launch and grow their real estate empire while working 9-5. Today I'll share a vendor recommendation, breakdown of the 5 major 9-5 investor pitfalls (and how to avoid them), and close with an invite to our next community call. But before we dive in, I wanted to give you a quick update on the Secret Empire course... It's already been a month since we launched the course So grateful for everyone that's joined so far - I'm excited about the community we're creating here. Here's the Secret Empire month 1 course update by the numbers... → 1,186 slack messages → 107 course starters → 13 course finishers → 7 strategy sessions → 1 community call Looking forward to a big month 2, stay tuned... But without further ado, let's dive in!
VENDOR RECOMENDATION If you're already managing a rental, you know it can seem like feeling your way through the dark. That's why I wanted to recommend for one more week my close friend AND landlord mentor Joel Jones. He's managed 500+ rentals and is an expert at everything from finding tenants to evictions. He's giving back and teaching other landlords to run a tight ship through this free webinar. If you're looking to up your landlord game, don't miss out!
WEEKLY BREAKDOWN This week I'll breakdown... 9-5 investor pitfalls (and how to avoid them) Investing in real estate as a busy 9-5 professional can be tricky, especially if you're investing alone. Having gone through the process myself and now working with 150+ investors trying to do the same, I've seen some common pitfalls that new and would-be investors fall into. This section will outline some of the pitfalls and walk through strategies to overcome them. Pitfall 1: Lack of clear goals Most folks know that real estate is a "good" investment, but struggle to understand how it can impact their financial future. So they don't set goals and just invest and hope for the best. How to avoid:
Talk to investors that are further along than you. Don't just ask for highlights but dig in to understand how their portfolio has cash flowed and appreciated over time
Set freedom goals. Outline what your financially free life would cost per year and divide that number by the cash on cash return % you expect to receive. This gives you the rough amount you need to invest to live your financially free life.
E.g. Let's say you expect to receive 10% cash on cash return in your market (meaning if you invest 150k, you get 15k in pure profit) and need 80k/yr for your financially free life. 80k ÷ 10% = 800k --> so you would need to invest 800k to get to your goal. The number might seem intimidating at first but now you know what it would take and can start working backwards to save. Pitfall 2: FOMO (Fear of Missing Out) Airbnb's, fix & flips, land acquisitions, luxury storage, and whatever the next tik tok real estate trend can put you in squirrel mode - constantly wasting time chasing the next big thing. How to Avoid:
Stay Informed, not reactive: Keep yourself updated on market trends but avoid making investment decisions solely based on short-term hype.
Invest with a long-term perspective: Focus on your long-term financial goals rather than short-term market fluctuations.
Pick a strategy and stick with it: Once you've consulted with professionals and picked your strategy, stay with it. It will take years to succeed so you need to be patient.
Pitfall 3: Investing locally Investing locally is undoubtably more convenient than investing out of state BUT the chances you live in an ideal market are extremely low. Many new investors start locally and then hit road blocks when they aren't seeing the returns they want. By this time, switching costs are high and they tend to either give up or settle for 2nd best. How to Avoid:
Research markets vs inspiration: Instead of reading inspirational stories and listening to podcasts, pour through market reports. Make a list of top cash flow markets and rank them by cash flow potential, rent grow, population growth, and economic growth.
Leverage Technology: Utilize platforms like Zoomprop to analyze top markets in real time and pressure check your assumptions. Pitfall 4: Emotional Investing Allowing emotions like fear and greed to drive investment decisions is a common pitfall that can lead to impulsive choices and poor outcomes.
How to Avoid:
Stick to your investment strategy long term: Create a well-thought-out investment strategy with the help of mentors and professionals and stick to it, regardless of short-term market fluctuations.
Practice emotional discipline: Recognize and control your emotions when making investment decisions by sticking to your predetermined plan.
Seek support: Consider joining investment groups or communities to gain emotional support and share experiences with like-minded investors. (This is what I built the Secret Empire community for!)
Pitfall 5: Analysis Paralysis
There is so much information out there. You can spend a lifetime listening to real estate podcasts alone. So many investors get stuck in this loop and miss the power of owning real estate over time.
How to Avoid:
Set a decision-making process: Establish a clear process for making investment decisions, including criteria, research, and timeframes.
Limit information Overload: Focus on essential information and avoid drowning in excessive data.
Take action: Once you've completed your research and analysis, make a decision and implement your investment plan.
And there you have it - the 5 major pitfalls of 9-5 real estate investors, and how to avoid them! Happy investing!
COMMUNITY CALL ***We're pushing this week's community call to next week to accommodate for influx of new members*** The topic is Finding & Investing in a Market You Don’t Live In IMO this is the most important thing to understand when starting out in real estate. Chances are the right market is not going to be the one you live in... → So where do you invest? → What should you consider when investing out of state? → How can you make sure you're finding good deals? We'll be covering this and more in next week's call! If you're a member of the course, you should have a calendar invite (if you don't see one, reply to this email and let me know). Not a member yet? Click the image below to join & you'll get an invite.
THEN, WHEN YOU'RE READY... Consider joining 100+ students in the Secret Empire Course & Community! The course covers the exact playbook I used to grow from 1 to 39 rentals in 3 years. Founding members will get 2 strategy calls with me along with access to the community slack channel and bi-weekly community calls.