Knock, Knock, Who’s There?
Entrepreneurship. Entrepreneurship Who? The True Cornerstone to Small Business.
The Real Estate Story – When I first started investing in investment real estate I never thought for one moment that with each investment real estate property we purchased we were creating a small business. It was not until I started producing a monthly financial statement did I realize had all the elements of a small business. Each property had revenue; expenses and net income.
5 Years and Out
Most small businesses don’t last five years, and they disappear from the business landscape. The reasons are numerous, and over the days, months and years ahead I intend to review why some businesses survive and others just fade away.
These small businesses fade away because they have a revenue issue, an expense issue or a net income issue; owning investment real estate is no different.
When anyone talks about operating a small business they often introduce themselves as an entrepreneur first and a small business owner second.
According to Wikipedia; entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs.
According to Wikipedia; small businesses are normally privately-owned corporations, partnerships, or sole proprietorships. https://en.wikipedia.org/wiki/Small_business
This year marks the 10th Anniversary of our company’s incorporation, and I am very proud of that fact.
Late last year, I started to retool and enhance our business model. It is often said to be successful in small business pick your lane or niche.
I am not moving away from our roots regarding investment real estate.
Today I have over 35 blog posts; I have been blogging twice a week, Tuesdays and Thursday since November 21, 2017. It is a landmark number for me and hopefully for my readership. The intention is to provide valuable content to help those interested in adding investment real estate to their financial portfolio.
At the beginning of starting our small business we were focused on one niche, investment real estate and ten years later we have stayed true to our roots. We have enjoyed some very prosperous years, but we have also had years with challenges.
The path to the front door of investment real estate is never straight.
In most countries, investment real estate is considered a business, and you are subject to tax rules regarding small business. Over the months and years ahead I will write about small business operations and talk to small business and entrepreneurial experts.
In the book, “Rich Dad, Poor Dad’ by Robert Kiyosaki; which is a must read; Robert talks about small business ventures you undertake.
I would also recommend some of the Rich Dad Advisors books. (only compensation I have received is the learning value from these books)
Just diving in and purchasing investment real estate is not a business plan.
Business Plan; the Last Thought; many business plans are divided into four parts; an idea, the planning, the strategy, and success.
When I looked to start retooling my investment real estate business, I knew I would have to spend more time developing a business plan.
What was the idea behind developing a business plan, from start to finish; first move into the planning stage, then create the strategies to reinforce the business plan and at the end of the plan what was going to identify success?
Remember Success is not always the outcome of a business plan; if most small businesses don’t make it past the 5-year mark.
How have we managed to stay in business 10 years? We picked a lane and have stayed there.
When we initially incorporated we said we were going to “Purchase Investment Real Estate; that was the only words in our entire business plan. It pretty simple business mantra.
Having an interest in education and coaching we decided to include both education and coaching as part of our articles in our incorporation.
Coaching, consulting and education in the field of investment real estate was not a big part of our focus in the beginning.
With ten years under our belt purchasing investment real estate, it took a change in employment to shake the foundation of my career and personal life.
Investment Real Estate was like my hobby farm; to support my hobby I joined a large investment real estate educational group and realized I had a real passion for investment real estate. When we joined we signed a membership commitment of stay 17 months. This June we will be presented with our 10-year award. Where did the heck that time go?
The first several years our business mindset was focused on the Bricks and Mortar side of the investment real estate business. Then there was a change in my career and I began to revamp my focus on investment real estate.
70% of our investment real estate was acquired through Joint Ventures and I had become the “Accidental Investment Real Estate Coach and Mentor.”
For 10 years I have been attending investment real estate educational meetings, conferences and seminars and purchasing an extensive library of investment real estate books.
I decided it was time to give back to a larger audience; not just my joint venture partners.
Acquiring a ton of investment real estate knowledge I shared my joint venture partners and casual friends who were constantly reaching out to pick my brain regarding investment real estate.
Late fall of 2016 I earned my designation as an REIA; Real Estate Investment Advisor. I love this designation as it is supported by ongoing learning.
How did I knew what started out as a hobby; would turn into a small business and allow my entrepreneurial skills to kick in and provide not only financial support for my life but help me realize that I was going to enter a new phase of my life.
If you are listening to this podcast on Entrepreneurship and Small business; you know I am focused on building my small business in the area of Investment Real Estate.
It is an area that is on your mind and you are interested in finding out is this an area of entrepreneurship and small business practice you want to enter. Do you have an area of small business interest or are you looking to shift your entrepreneurial direction?
Are you making the choice or did someone else make the choice for you?
Someone made the choice for me.
Is there a Shift in Direction coming in your life?
Who is involved in making this change happen; you or someone else?
Did I get lucky or did I make my own luck? If you are an employee someone else is always going to have control of your work life. Why not hedge your future while you have a great career and create an investment real estate portfolio. Follow me and my guests over the next weeks, months and years ahead and we will help you build an investment real estate portfolio that will help build a strong financial foundation, unlock sustainable wealth and create a living legacy.
First; don’t be in denial and think you are going to be secure in your career all of your life. There are always signs change in employer management or ownership are just to name a few.
By listening to this podcast show I know you are thinking about investment real estate.
If Investment real estate is on Your Mind; let me share my story and in some small way help you begin to make a shift in your story.
Where do I begin to share?
How to share my investment real estate story that started as hobby investing to a monumental change in my career life and the survival lessons. This monumental change turned out to be a new exciting beginning.
I heard a saying, “Everyone has at least one book in them to write”, and this simple act of putting pen to paper has changed my whole thought process.
This one act of putting pen to paper has led to my book currently being edited and submitted to a publisher, an opportunity to write on an ongoing basis to for one of Canada’s largest investment real estate magazines, REINLife, writing a blog post every Tuesday and Thursday and now I have launched a Podcast show, providing actionable content regarding investment real estate. With my podcast show I hope to alternate between myself presenting content and have a guest on that week giving a different perspective on the content I had discussed.
I thank each and every one who has supported reading my blogs; you have no idea how grateful I am for your support.
You will find from time to time I will talk about my family. My Mom and Dad were a very positive influence on me. My Dad retired from the armed forces and started a second career in real estate. His work in real estate not only influenced me but my daughter just started a second career in real estate.
“Money does not grow on trees.” my parents often said to my brother and I growing up.
I am sure this saying is not an original Mom and Dad proverb; many of your folks may have had this as a saying in their paternal life lesson toolbox.
My Dad was a proud member of the Armed Forces for 25 years, and when he retired from the forces, I didn’t think he would find a career that he loved as much as the forces.
His second career in Real Estate filled out the rest of his working life.
Not long into his new job my Dad invited me out for a coffee. My Dad opened the conversation around the saying; Money does not grow on trees. I said, “I know Dad, and I have a job and don’t need your money.”
This lead to a discussion about how trees turned into money through investment real estate. Dad went on to spin a story how most houses constructed from wood that comes from trees. I had a good laugh and asked him where he was going with this story?
Dad had a way of spinning words into a life lesson tale.
A duplex had come on the market and Dad, and Mom wanted to buy the entire property; both sides. They were going to live in one half and get my wife and me to become partners in the other half of the property. The goal was to find tenants for the other half of the property.
Investment real estate can be a rewarding part of your financial portfolio; and a way to start your journey on creating sustainable wealth.
Creating Wealth Lesson:
1. Start Your Investment Real Estate Career with your parents if possible
2. Lenders are happy to give you 80% of the funds to purchase if you provide the correct information; income statement, net worth statement, reliable income, (link to my blog; Don’t Give Up Your Day Job; https://www.vaulttoinvestmentrealestatesuccess.com/blog/dont-give-day-job/
3. How to purchase investment real estate.
4. Good tenants are easy to find and happy to rent a lovely property.
5. Know your numbers and create positive cash flow.
6. Lower your risk; buying a multiple door property; duplex or bungalow with income suite.
7. Long-term Buy and Hold Strategy; time goes by fast and is on your side.
8. Build a Celebration Routine each year you own your investment property; to give yourself thanks for stepping outside of your comfort zone.
Our Celebration Routine:
Dad and I were sitting on his deck on the 1st-anniversary date of purchasing this investment real estate property and were talking about, ” Money Growing on Trees.”
I am not sure if it was the beer or the excitement we were doing well with this property; Dad said; “Why don’t we pick a leaf off the tree in the backyard and put a leaf in our wallets.”
The idea of picking a leaf each year turned out to be a great moment, and for years Dad and I would replace our leaf in our wallets with a new leaf. Raise our glasses and say;” Who says money does not grow on trees.”
As Samuel L. Jackson says; “What’s in Your Wallet.”
Before I say goodbye I would like to share; two actions; Please and Thank You
Please if you are enjoying my investment real estate content, recommend my podcast to others.
The second action is to post a comment at the bottom of any of my podcast episodes and let me know if I am giving you the content you are looking for regarding investment real estate.
I am currently a regular contributor/writer to REINLife one of Canada’s Top Investment Real Estate magazines. The editor of the magazine uses me as is go-to-guy and often gives me topics to research and write. He also has me often write in a column called,”Ask The Expert.”
I am happy to do research for you regarding investment real estate; just ask.
Much Success and look forward to talking to you on our next show.