This episode is all about the world of long distance real estate investing.
David is a real estate investor/agent, author, entrepreneur, and police officer in the San Francisco Bay area of California. David’s goal is to achieve total financial independence through real estate and help others to do the same. When David is not out hunting for bad guys, he hunts for deals and loves talking real estate.
- Who is David Greene?
Since we last met David, his real estate agent business has been doing very well. He has taken the principles he learned in real estate investing and applied them to the agent business and it turned out to be very effective.
We are looking for financial freedom and that means taking a number of steps on that journey. Living in the Bay Area, David has had to evolve his approach to real estate investing and that has led him to discover the skills needed to invest long distance.
- Why did you feel the need to write the book?
David wrote the book because of the lack of real estate resources when it comes to doing it long distance. The fundamentals are exactly the same no matter where you go, it’s in your head that you think you can’t do it.
Long distance real estate investing used to be extremely risky because you couldn’t do your due diligence. Lack of information gave it a bad reputation. Long distance investing isn’t risky, ignorant investing is risky. One of the biggest hurdles for entrepreneurs is trying to do everything themselves, but technology and teams have made long-distance real estate investing viable.
- What technology is making investing easier?
David built a team that takes care of most of the maintenance of his properties, it doesn’t matter how far away the property is, the process is exactly the same. It might actually be better to own properties that are further away because you will be less tempted to dabble in an area you don’t have any skill in.
Write down what you think will go wrong, and chances are you can fix the situation in one or two steps.
The first tool is a good team. Usually a deal finder, a lender, a property manager, and a contractor. The second tool is basically the camera your phone comes with. Rentometer.com is a good tool to compare potential rent rates. Text messaging has also saved David a lot of time. There are also a lot of free websites that allow you to get some info on a property without having to see it in person.
- What is the first step in long-distance real estate investing?
Most people believe that they need to find the deal and the lender themselves, then they have to figure out the contracting on their own. David feels that rockstars know rockstars. If you know something really well, chances are you know others who are really good at one thing too. Find the person that can do the things you need done and add them to your team.
Whatever you don’t know about the area, that is the first thing you need to address. Go and find someone who knows what you need to know. Don’t wait, go to where it makes sense to buy and put a team of people in place there and start buying.
Repetition builds mastery. Our brain recognizes patterns and we learn to swim in the deep end by getting started in the shallow end. Taking small risks are the repetitions that give you the ability to start taking larger risks that can bring larger rewards.
Experience is more valuable than capital. It’s ok to be weak, it’s just not ok to stay weak.
Our brains are hardwired to prevent loss instead of looking for opportunity. You have to reprogram your brain to look at what opportunities you are going to miss. Don’t let fear prevent you from becoming the person you could be.
If you wait to feel strong before you workout, you will never get there. Each little step you take adds to the progress of your growth. Tell the people around you what you want to do and ask them to hold you accountable.
Reference: Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties, David Greene
- David’s Takeaway
Take a logical approach to the reservations you have. Focus on how to maximize your reward side while minimizing your risk. What can you start doing today to protect yourself in case the step goes wrong, build a net underneath you in case you fall? Don’t bet everything all at once, the trick is to play the game for a long time and get better as time goes on.
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