Interestingly, real estate investing is synonymous with a beautiful love affair. The process is filled with many ups and downs, emotions, and life lessons. Think about it, in the beginning, you scan online listings, or you have your broker show you a few properties. This is similar to swiping on dating apps, going on blind dates, or being set up by friends.
As with dating, you must be willing to take risks if you want to reap the rewards. Or you run the risk of never being happy. However, taking risks shouldn’t involve taking unnecessary risks. Arguably, the key to success in both love and real estate investing is the ability to understand and take calculated risks.
A Risk is defined as the potential for uncontrolled loss of something of value. If we view real estate investing through the lens of love, we see that love and real estate investing both require you to take similar calculated risks.
ONLY FOOLS RUSH IN
Don’t fall in love too quickly; you may regret it.
GET EXPERIENCE
Unless you have money to waste, don’t jump into real estate investing without obtaining experience and knowledge.
FIND A MENTOR
CONDUCT DUE DILIGENCE
As you evaluate a property, you want to know if the property is reliable, trustworthy, despite whatever heavy baggage it may carry from past relationships. Similar to the vetting a spouse in the early stages of a relationship, you need to ask a lot of questions.
LOOK FOR MATURITY
Acquiring a multifamily property is like marrying someone with a Masters’s degree. He/she has perseverance, is intelligent and mature. If you’ve done it the right way, you should be a better judge of character. You should know exactly what you want. While multifamily properties can still break your heart, multifamily properties are less likely to do so when compared with marrying your high school sweetheart.
BE WILLING TO WALK AWAY
With maturity comes the courage to walk away from the “perfect investment” unless the deal is what you want and on your terms. After a few bad relationships, you should know what you deserve and understand how much you’re willing to invest in getting it.
ENJOY BEING IN LOVE
If you’ve been fortunate enough to own a profitable real estate investment, you understand the sheer bliss of reaping consistent passive income. The entire experience makes you feel smarter, more productive, and inspired, similar to the feeling of being in love.
Overall, there is a lot that goes into real estate, investing, and making calculated risks. To explore this topic in more detail, click here.