Three Keys To Building A 20 Million Dollar Real Estate Investment Portfolio
Cory Albert is president of Cory Albert Real Estate.
Just as every journey starts with a single step, every real estate empire starts with a single building. As I’ve built my own portfolio over the years I’ve learned how to navigate the winding road of real estate investment. Here are three of the most important lessons I have learned throughout the years, some of which apply to almost any business.
1. More Than Money
I initially started investing in real estate for financial reasons. But I soon realized that money wasn’t a sustainable source of motivation over the long term. Instead, it’s important to have strong ethics and values that represent who you are as a person. Since almost all real estate investments involve tenants (especially families), I realized that focusing on helping others, rather than just pursuing profits, has helped drive my vision forward.
Putting ethics first means doing the right thing even when no one is looking. Ask yourself what your values are and write them down. That should help give you a clear idea of what your larger goals are and how to get there.
2. Building A Great Team
When I started, one of the mistakes I made was thinking I could do everything myself. I eventually realized that by yourself you can go fast at first, but not far. That’s why having a good team is crucial.
I’m a true believer that people who are drawn to you, share similar values to yours. The first step in building a great team is to look inward and focus on self-improvement to become a better person. Only then can you attract people who share your vision. Whenever I feel like I’m not attracting great people, I always look at myself first.
Team members should not only share a vision but also offer complementary skills. Just like on a sports team, a varied skill set is key to achieving collective goals. I always make sure to surround myself with people who can do things well that I can’t and vice versa. That way everyone adds value, and the result is a synergy where the sum is greater than the parts.
3. The Power of Mentorship
Finding someone who has already done what you want to do and is willing to share their experience can be one of the most important factors to achieve success in real estate—and in just about anything else you’re trying to learn from scratch.
Without a mentor, I’m sure I would be nowhere near where I am today. Mentors provide guidance not just on what to do, but also on what not to do. This can help you avoid costly mistakes, especially early on. I’m not a handyman, but at one point I found myself drilling and hammering to repair something inside the second building I ever bought. My mentor called and asked what I was doing, and reminded me that I should be looking at deals and trying to build my portfolio, not installing sinks or refinishing floors. And he was right.
It is very important to make sure that any potential mentor you find is still active in their field. In real estate especially, investing patterns change from year to year or even month to month. Last year’s wisdom doesn’t necessarily apply today. As an active real estate investor myself, coaching others to build their real estate portfolio has become an important part of my life, and it is letting me give back to others who are in the position I once was in my beginnings.
Getting Started
Getting your first property remains the most complex. It’s the hardest part because we have to find the funding and we don’t have any experience. We also often lack confidence in our abilities, we have to dare. As in almost any business, getting off the ground is the hardest part. This is where a good team and a mentor’s advice are both invaluable. It’s also important to keep in mind that you don’t need a massive real estate portfolio to achieve financial freedom. The compounding effect of owning just a few well-chosen, profitable properties can make a big difference.
Building a real estate portfolio is a journey grounded in ethics, teamwork and mentorship. Remember, it’s not all about how much you own, but the impact you make on your community and the lives of others.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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