How To Make Real Money In Real Estate
How To Make Real Money In Real Estate
Why is failure an important part of the journey to success?
Tolerating massive amounts of failure and setbacks is essential. Everyone loves to talk about their success, saying, “I’m free because I succeeded.” No, I’m free because I failed—a lot. I kept going, learning, figuring things out, and improving the model. None of those failures stopped me from reinventing myself or pushing forward. I’ve had big setbacks; I’m not someone special. I started as a regular person, and I’ve lost big, faced foreclosures, and nearly filed for bankruptcy. Now, I’m doing fine, but if you’re struggling, remember, you’re not alone. People like Chaz and I didn’t just breeze through to success; we endured tough times. It’s about learning to handle the ups and downs until you’re skilled enough to succeed.
How has the rise of young investors impacted financial markets?
We've had a paradigm shift in education, especially in financial education. Today, there’s so much more available than before—podcasts, resources, and people like us sharing information freely for anyone interested. Young people are far more engaged with their financial futures and overall well-being than we were at their age. When I was in my twenties, my friends weren’t concerned with investing or building wealth; they focused more on experiences—dates, dinners, and social events.
Today’s young people are significantly more business-savvy, which brings both positives and challenges. More money is flowing into investments, creating a scarcity of assets and impacting markets. For instance, the influx of younger investors contributes to volatility in assets like crypto and stocks. This isn’t the traditional world of our parents, where financial success meant wearing a suit and tie and working at a place like IBM. It’s a new world with a fresh mindset, and that shift is significant.
Why should entrepreneurs stay focused on core principles in changing market conditions?
The fundamentals never change, much like in sports. Whether you're playing golf on a rainy or sunny day, the fundamentals of your swing remain the same. In business—specifically in real estate—the same principle applies. No matter the market conditions, you need to focus on the fundamentals of what makes a good deal. Typically, that’s something that generates profit. Lately, we’ve drifted away from this, moving from using math, logic, and returns to more speculative value. That’s where the market may face some corrections. Going forward, in any business—but especially real estate—you need to learn the fundamentals, understand what a good deal is, and look at a lot of deals to recognize value.
*This interview has been edited and condensed for clarity.*
