A RECIPEE FOR REAL ESTATE INVESTING?!
We hope everyone enjoyed at least one delicious meal this past Thanksgiving weekend! In many homes, the recipes and traditions are handed down through families; while in other homes, new recipes are created and shared as the family grows, travels, and changes with the life seasons.
We have been lucky to spend some time with our REIN (Real Estate Intelligence Network) family and friends over the past 2 months. This family doesn’t have food traditions, but they do have a favourite recipe for real estate investing success. They call it “The Decision Maker” or the “Time, Money, Knowledge” matrix. Let me share it’s exquisite simplicity with you today.
The success of any real estate investor or partnership is based on the blend of each the 3 “macro” ingredients. The first ingredient is time—such a precious, non-renewable resource! Do you have the time to source the properties at a great price? Research and follow the news about the real estate cycle? Answer the “clogged toilet” calls at 2 am? Manage the plethora of paperwork that accompanies each investment property? Next is knowledge: understanding when and where to invest, analyzing the ideal purchase price or renovation costs, knowing what your ideal exit strategy is—and what your backup plan(s) can be. And the final key ingredient is money; this seems obvious, but we want to emphasize that having money is only part of a successful real estate investor’s recipe.
When you consider the perfect blend of spices, too much of any one ingredient throws off the final recipe; for example, too much salt can ruin a perfect turkey, and too much dill can destroy a fresh caught salmon. Or, if you consider the macro ingredients for human nutrition: there is an ideal balance between carbs, protein and fats for each stage of life, and your life/athletic goals.
Real estate investing is no different. It is neither good nor bad to have 1 or 2 of these key ingredients. However, the ideal success formula, for the most delicious and rewarding investing success, is a blend of all 3 assets: time, money and knowledge. So we encourage our family and friends to check their pantry for your key investing ingredients. If you’re missing time as a busy professional, partner with someone who invests as a business. If you’re flush on cash, but lack the knowledge of when and how to invest, partner with someone who is actively investing and networking with real estate experts. And if you have time and knowledge, but maybe require the capital to continue to grow your business, it’s time for business partnerships!
We love talking real estate investing! Contact us to learn more or just have a coffee conversation: https://mountainsedgedevelopments.com/, @MtnEdgeDevelops, https://mountainsedgerenovations.com/, @MtnEdgeRenovate.
