There’s no magic formula, but Brandon Turner of “Bigger Pockets” would tell you the first and most important ingredient is to equip yourself with a variety of tools and take action. Brandon got into real estate investing at the age of 21, borrowing money from a family member to purchase a property. he ended up flipping his first real estate investment and made $20,000 on that transaction.
Next he bought a duplex as an owner occupant, moved into one side, and the rent from the other side paid the mortgage. That was all it took to convince Brandon that real estate investing was the business he wanted to pursue. In this conversation, Mark Ferguson of InvestFourMore asks Brandon all kinds of questions about his journey into real estate investing, rental property purchasing, and some of the behind the scenes things that got him where he is today. You won’t want to miss this one.
Should you borrow money from family or friends for your real estate investing deals?
Brandon Turner got the cash to buy his first rental property from family members, but he’s not convinced that everyone should go that route. In large part the decision depends on the kind of relationship you have with the person. In Brandon’s case, his father loaned him the money, and his father had an entrepreneurial attitude already, so he was not a risk averse investor. That made it much easier for Brandon and his father to work together to make the deal a reality. But even in a scenario like that, Brandon suggests you do everything by the book. Draw up contracts, make legally binding agreements, do everything in a way that is clear and based on realistic time frames so that both parties feel protected and considered in the transaction. And even if the deal goes sour and money is lost, Brandon insists that you do everything you can do pay back that money so you don’t sour the relationship along with the real estate deal. Find out more tips on finding investors for your real estate projects on this episode of The InvestFourMore Podcast.
What is the biggest thing you need in order to be successful in real estate investing?
Brandon Turner says the biggest thing you need to be successful is really pretty simple. First, learn all you can. Equip yourself with a variety of tools so you can approach a variety of situations with some level of knowledge and expertise. Then second, you need to persistently take action. The worst thing is to puff yourself up with a lot of knowledge but to sit on it, unwilling to make anything happen. The knowledge is necessary, but the action is vital. Find out how Brandon put this philosophy to work in his own life and how he’s at the point that his lifetime business goal is to own 1,000 units.
Brandon Turner’s goal to buy 1,000 rental property units
Even if you’re a seasoned real estate investor or property owner, 1,000 doors is an incredibly massive goal. Is Brandon crazy or does he have a reason to set such a high number? He’s not crazy, he’s just motivated, and he understands what Grant Cardone calls the 10X rule. Grant teaches that whatever your goal is, you should multiply it by a factor of 10. Why? Because most people fall short of the goals they set. It’s not that they’re lazy or don’t put in effort, it’s that something in the human psyche causes us to be limited by the goal itself. But when you set a goal that is much larger than you originally thought, you’ll tend to think in possibilities and options that are far beyond your original goal. That enables you to surpass it. When Brandon heard that, it was all it took. His previous goal was to own 100 properties, so he multiplied it by 10 to get to the 1,000 property goal. Find out how Brandon views goal setting and the one course about goal setting that changed his life.
Investment partnerships: Why Brandon Turner LOVES them.
In the business world there’s all kinds of negative talk about partnerships. But Brandon Turner believes partnerships are one of the best ways to multiply your efforts in real estate investing. He gives this example: Say Bob is very interested in real estate but doesn’t have the time to become educated about it or do the work of putting together the deals. But what Bob DOES have is the money to finance a deal. Brandon will come alongside Bob and propose a partnership where Bob puts up the money and Brandon structures and oversees the deal as it shakes out. In the end, each of them is 50% owner in a rental property. Brandon got into the deal for no money and is making a 50% return on Bob’s investment. 50% of something is much better than 50% of nothing. Find out more about Brandon’s partnership strategies in this episode.
www.BiggerPockets.com – The site where Brandon writes about real estate.