CONCLUSION
There is no doubt that once you venture into a career in real estate, you will become hooked very quickly. There is a definite adrenaline rush in seeing a piece of property that was in a state of neglect when you assumed it blossom into a showplace. Although it is hard work, the rewards and potential are practically limitless. Many investors will tell you that they actually experience joy in seeing a neglected house brought back to life. For them, each flip is like a work of art, and selling it is like introducing their latest masterpiece to the world. Some even report that they will follow the progress of a particular project after it has been sold. They will maintain relationships with the new owners and visit or drive by on a regular basis to observe new changes or additions.
With each property, you will encounter unique problems that will build on your experience and from which you will walk away with several tricks and tips to add to your repertoire. Many times, you will find yourself outside your comfort zone, and even though it may seem chaotic at first, in time the process will become almost methodical. However, each house is different, and it is amazing to bring out the personality of a piece of property. Do not be discouraged by the little bumps in the road. Few executives can boast that they have never made any mistakes during their career. Learning how to take those bumps and smooth them into success stories is part of the adventure of being an investor.
For many, the most difficult aspect of a career in real estate is overcoming the fear of failure. Even when we have determination, there is always a seed of doubt in the back of even the most confident of minds. Those entrepreneurs who push forward are not able to repress that doubt. They are simply not able to allow it to grow and overcome their dreams. There is some level of risk involved in every venture, and the advice that nearly every successful businessperson will give to the person starting out is to take the risks, sometimes even when others tell you not to.
It is important to maintain your knowledge as you go through your flipping career. The laws regulating real estate are constantly changing and evolving, so it is important to understand that although you will eventually reach a point in which you can operate with confidence, you should never get too comfortable. Inevitably, as soon as you do, a law will change that will have you reevaluating the way in which you conduct business. You can be confident, though, that you will always be challenged and that you will never become bored.
After several years of flipping single-family properties, some investors decide to explore multi-unit ventures. This is a good way to expand your business, but there are some differences between single-family and multi-unit flips. Some investors purchase multi-unit buildings with the actual intention to remodel every unit and then resell them, while others purchase a building with no intention of renovating but simply selling the units off one at a time for a profit. Primarily, if you purchase a building of multiple condominiums and plan to refurbish them, there will be two codes to which you must adhere: the code for the building and the code for individual units. Keep in mind that renovating several condos simultaneously is similar in concept to redoing several single-family properties at the same time. What this means is that while it may be possible to reap a considerably higher profit from the sale of the units of a multi-unit building, it will, in all likelihood, take considerably longer to renovate a building of condominiums.
Many wonder about retirement. In real estate, it is not so much the money aspects that are bothersome, as it is how to find an “out” once you are “in.” How do you end your investing career? When you reach that point, chances are that you will have several options. If you are in a corporation, you will need to determine with your partners whether you will retire simultaneously or individually. If you choose to retire in sync, you will be faced with the decision of whether to dissolve the company or sell it. The decision will largely be determined on the state of the corporation at that time and the potential profit you stand to gain from each. If your partners and you determine that you will each retire when each is ready, then it is a good idea to have a plan for how this will be handled. Determine whether the exiting partner will be expected to option his share of the company to the remaining partners or if he may sell it to whom he chooses.
Although it seems almost precarious to be thinking of retirement before one even begins, it is always important to think ahead. Whether it is for breaking into the world of real estate investment, maintaining a successful career in it, or exiting it for a comfortable retirement, have a plan. While it may not be immediately imperative to think of winding down your career, it is still wise to have a plan for how much of your investment profits you will set aside for the future and into what type of account. Will you continuously reinvest, or will you just allow the cash to appreciate in a traditional bank account? Work with your accountant to determine the best plan of action for your future as well as the present.
In every aspect of your life, a little bit of planning and knowledge can take you a long way as a real estate investor. Having vision and being prepared to realize it are the only things you really need to begin in order to move forward. These two qualities can take you virtually as far as you will let them. Be prepared to experience some bumps and bruises along the way, but do not let minor setbacks discourage you. Part of being successful in any venture is adaptability. Remember the qualities that were discussed in the beginning of this book? They are not qualities one merely needs to break into the business, but to remain in it and become successful. They are life qualities.
Once you tap into your potential and establish a rhythm for your business, your possibilities are limitless. Understand that being a good businessperson is a lifestyle as much as a way to conduct transactions. Reward yourself, and avoid investor burnout by taking a breather every now and then. Although flipping houses can become very addicting, do not lose sight of the reasons you decided to go into business for yourself. Perhaps it was to build a respectable retirement or to have more quality time. Give yourself and your family those vacations you have been dreaming about for years.
Get away from the world of real estate and try not to imagine how you would renovate your resort if you could. After all, your next flip will be waiting when your vacation ends.