man on nyc street

Investing in real estate: 6 things I did in 2016 to have my best year yet

The 6 things I focused on to reach $13,000,000 in assets owned/managed.

Ever since my first PRSUIT article in December on how I went from clueless college graduate to $13MM in real estate in under 4 years, I have gained followers on social media, had an Instagram video get reposted by @AskaMillionaire (Shawn Thomas), and made another six figure investment.

My success and growth in real estate investing over the past 4 years showed me what I am truly capable of.

But more than anything, I have been getting asked: how specifically did you accomplish these things in just under a half decade?

To me the actual “how to” is all about drive, consistency and relentless focus… it’s the intangible “easy” parts (to me at least) that have enabled me to accomplish what I have. There are no steps and any article with “x step process” is honestly B.S.

This is not a “x step process”.

When it comes to real estate investment and my personal success, these are the 6 things I focused on in 2016 – and continue to focus on this year.

investing in real estate - man against wall

1. Increase monthly income.

I knew, in most scenarios, I would need money to make money (I can contradict myself there – which is another article in itself 😉 ) so I needed to find a way to raise my monthly income.

Initially, people told me to save my monthly income. But all I could keep thinking was how, if I were like them, I’d be able to save a tiny $100 or $200 per month in which case would take me 1,000 or 500 months to have $100,000 to invest; or it would take me 10,000 or 5,000 months to have a $1,000,000 to invest.

So I did not focus on saving to start. I focused on how I could personally make more and more income every single month. I knew more income would nearly automatically skyrocket my savings.

I got involved in a direct sales company and rose to the top 1% of the company within 2 years. On top of that income, I still worked other jobs on the side…I was doing anything to raise my monthly earnings.

2. Save the surplus.

It wasn’t until I raised my monthly income that I began to focus on saving (while continuing to raise my monthly income even more). Most people who make $1,800 one month with $1,700 of expenses, who get a promotion or raise the next month and up their income to $5,500 also raise their expenses up to $5,300 – so they still were stuck at a $200 margin to save. I was determined not to be like the rest of the world.

As my income grew and grew and grew, my expenses did not increase. If my initial expenses were $1,800 per month when my monthly income was $2,000 per month, my expenses stayed at $1,800 per month even as my monthly income rose to $4,000; $5,000; $6,000+; etc…

This allowed me to start saving $2,200; $3,200; $4,200+ per month. This shows, that if you can save for a purpose, you can rack up 6 digits (with a comma) worth of savings rather quickly. You have some nice investment opportunities with $20,000 – to $99,000 but you have many more investment opportunities and options when you have $100,000+ saved up.

3. Seek investments.

This one is simple…I didn’t wait until I had money saved up to start looking for investments. I hit the pavement right away, even though I knew it might be awhile before I could have enough savings to make a significant investment. The price tag didn’t matter, the looks of a real estate property didn’t matter, what seemed to be a crappy deal DID NOT MATTER. I was window shopping ALL investment opportunities so I could learn and gain instinct!

I would get boots on the ground as well as go over financials. I wanted to be ready, be educated and make quick decisions when it came time to invest…you don’t have very long to look at a great deal before someone else will scoop it up!

4. Value buying, sensible financing, wise managing, & grow!

I always buy things so that they are giving me a minimum 8%+ return on day one…and often my investments can return much higher than that in year one (one of my investments literally has a return of infinity – a future article).

All that said, I also must be able to add more value to the investment so I can recognize even better returns once the value is added. For example, a real estate property that you can fix up the cosmetics and immediately raise the rents $100 to $200 per month… that’s value adding.

I also always have sensible financing. I make sure we can easily cover our debt payments. And I always try to think ahead to when the term of a loan is done – whether its 3 years, 5 years, 10 years and what all I would have for options to refinance even if the world is coming to an end.

My team and I wisely manage. We take care of and steward our investments aggressively, yet with the utmost care and attention. Never neglect to manage your investments – remember the last time you neglected to pay attention to the food you were preparing – it didn’t pan out well, did it?

When I get into an investment – I am automatically locked in and focused 100% on growth. Expansion is key. How can you accelerate the growth of an investment, while keeping a rock solid foundation underneath it? I relate it to a bull in a china shop when I take over a business, I want to shake things up and blow things up (in a fantastic way) immediately upon investing.

5. Double, triple, quadruple down on investments & asset integrity.

Once my investments started paying me, I never once thought about buying a Lamborghini or copping up a Hublot for my wrist. That’s just not me. Not saying that one day in the future I won’t, but for now I want to use the money my investments pay me every single month to double down, triple down and quadruple down. I want my money to have kids, and for it to become a grandparent, a great grandparent and a great, great grandparent. (4 more generations, i.e. QUADRUPLE down).

If you are still following me, that fifth generation money…the money after I quadruple down, that will be the fun money. That is where I might (I don’t know if I could), buy a Rolls Royce or a real fancy toy…but more than likely, I’ll pick up an NFL team and add it to the asset column.

Reinvesting can also mean, what I call “Asset Integrity”. It is important to infuse cash back into a previous investment so it continues to prosper and to grow. Remember, remember, remember; reinvesting does not always mean finding a brand-new investment.

6. Repeat, repeat, repeat.

The more you repeat this process, the more you will be able to positively impact the world. Everyone’s goals are different and success is different to everyone, but the same principles from this article work when building relationships with people, or being good at a certain skill, etc.

Nothing is more important than the actual work. No “3 step”, “5 step”, or stupid “67 step” process is going to get you there unless YOU WORK.

Feel free to find me on any of my social media profiles (Instagram is probably the most popular) – I try to reach down and give back 10 to 20 times per week with FREE 10 minute mentorship phone calls for those who DM me and want help in specific areas.

Thanks for reading and thanks for following PRSUIT!