The following is adapted from Creative Cash by Bill Ham, Gino Barbaro, Jake Stenziano. After almost eight years in the real estate business, I made one of the costliest mistakes of my career, losing over $1 million on a deal because I didn’t understand something important. Yes: $1 million dollars! It makes me sick just thinking about it. […]
So, what didn’t I understand? I call them the three pillars of real estate: market cycles, debt, and exit strategies. If you understand the three pillars, you can mitigate much of the risk involved with real estate investing. Fail to understand these concepts and you’ll likely make lots of money in real estate, only to turn around and lose most of it during the next shift in the market.
By understanding these pillars, you will not only make more money, but also keep more money, which is ultimately the name of the game. So, let’s take a closer look at each one.
