My Real Estate Criteria and Rules for Success
This is going to be an ongoing list as I learn more and incorporate lessons learned from my experiences. I have a mental criteria for every deal, but I think it’s time for me to write it down. This list isn’t in order of priority.
Rule #1: Never work with someone you can’t trust or says “You have to trust me on this one.”
Rule #2: If the deal is not better than this formula, skip it! (Gross Annual rents *50%) / (Purchase price + any repairs )= > 20%
Rule #3: Go into every deal as if you’re going to pay cash and will never sell.
Rule #4: Master a niche before moving towards another type of real estate deal. Remember there is a learning curve to everything.
Rule #5: Be patient, you make money when you buy not when you sell.
Rule #6: Don’t be scared to fire someone.
Rule #7: Always get approval from your wife/family before moving forward. If you can’t convince your wife, you haven’t done enough research.
Rule #8: Do not allow your tenants to have pets. They will destroy your property. If you allow pets, charge an expensive monthly pet fee.
Rule #9: Buy all properties within your trust.
Rule #10: Keep your properties in excellent condition, slum lords are assholes.
Rule #11: Always ask why is the seller selling the property.
Rule #12: Trust your network. If you can’t trust them, get rid of them.
Rule #13: All investments must be 100% passive, money is not important enough to take away from you family.
Rule #14: Always think in the number of units you have.
Rule #15: Aim to buy 3 properties per year.
If you’re interested in how I spend less than 1 hour a month on real estate and make bigger gains than the stock market, check out my one vs one mentoring. I give you my blueprint and my time tested method, kind of like a franchise, when you click here.