Fundamentals of Real Estate Success : 3 Most important Questions Answered

Summary

Real estate investors Danny and Flip share their journey, failures, and lessons learned over 15 years to help others avoid common mistakes. They explain the difference between active and passive investing, noting that many pursue active flips/wholesales as a side career without realizing the time/money pitfalls. They advise assessing your goals first, deciding if you want an extra job or passive income, and finding a trusted team. They believe you can try both active and passive small-scale first to decide which path works best before committing. Ultimately they now focus on quality of life and giving back, using a trusted team for active work while they passive invest.

Takeaways

• 😟 Make sure you understand where your money is invested and what the associated risks and returns are
• 😀 Ask key questions upfront - who do you trust, where do you want to start, which path is right for you
• 😕 Going down the wrong investment path can cost time and money
• 🤔 Evaluate both active and passive real estate investing to see which fits your goals
• 😠 Real estate investing has risks - be prepared to lose some money
• 😊 Mitigate risks by diversifying and doing enough volume
• 🙂 Take the time to design the lifestyle you want before investing
• 😀 Find an experienced team you can trust to educate and guide you
• 😉 Set boundaries and timelines when exploring new investing avenues
• 💡Teach and learn from both successes and failures in real estate

Q & A

What is the biggest mistake real estate investors typically make?

The biggest mistake is going down the wrong path by not knowing where to start or which investing path is right for them. Many jump into being active investors without realizing it takes a lot of time and work on top of their regular career.

What three key questions should real estate investors ask before getting started?

The three key questions are: 1) Where do I start? 2) Which path is right for me? 3) Who do I trust?

What is the difference between being an active real estate investor versus a passive one?

Active investors are involved in the day-to-day work of finding, fixing up, renting out, and selling properties. Passive investors provide funding to other companies and people to do the active work while they collect returns.

What does the lifestyle design worksheet help investors determine?

The lifestyle design worksheet helps investors determine what they want and don't want out of life. This clarifies whether they should pursue active or passive real estate investing based on their goals.

Even with experience, do the hosts still lose money on real estate deals?

Yes, even with their 15+ years of experience and safeguards in place, the hosts say they still lose money on some deals. This is why they focus on doing high volume - to mitigate the risk.

What is the show's purpose for providing education about real estate investing?

The show wants to help people avoid common mistakes and years of lost time and money by educating them upfront so they can make wise decisions and live a higher quality life.

What are some examples of passive real estate investments they recommend?

Some examples are private money lending, real estate syndications, Turnkey rental properties, and master notes.

What current passive opportunity do they discuss that helps reduce tax burden?

They mention the Cottonwood Town Homes opportunity which allows investors to get a $30K-50K tax write-off by investing $100K.

Why have the hosts structured their business to be more passive now?

Now that they have achieved success, the hosts want to focus more on their quality of life, giving back, and side projects like their podcast instead of active real estate work.

What resources do the hosts provide for people looking to get started?

They offer a free lifestyle design worksheet, free call consultations with their team members, and their contact info to ask questions and get help ([email protected]).