Real Estate Investing is a journey. Everyone goes through different experiences, along different paths. Any which way you take, it’s almost assuredly a road with twists and turns and dead ends. It’s never a straight and easy path.

The list of hurdles a real estate investor faces includes finding good deals, financing deals, managing properties, managing tenants, maintenance/repairs, managing personal finances, book keeping, and maintaining good relationships, just to name a few.

As a real estate investor, you'll stumble along your way to financial freedom (and beyond). You'll make mistakes. So long as you have a reason why, larger than yourself, you'll be motivated to not quitting and will eventually reach your goals.

The same thing can be said about not just real estate investing, but any difficult journey in life - going to school, raising a family, starting a business, etc.

That’s why it’s so important to have a reason that keeps you going – a reason why.

It's my belief that personal financial gain is not a big enough reason why to keep you going. I say this because at some point, you'll have enough to provide a comfortable life for yourself. If that is the bar you set, then simply working a 9-5 job for someone else will do.

The larger your reason why, the more motivated you'll be to achieve success, however you define it.

Set goals higher than you think you can achieve. Couple those goals with reasons why larger than yourself. You'll surprise yourself with the levels of success you can and will achieve.

Marco Santarelli is an investor, author, and founder of Norada Real Estate Investments – a national real estate investment firm offering turnkey investment property in growth markets nationwide. Marco Santarelli is the host of the Passive Real Estate Investing podcast – the show where busy people like you learn how to build substantial passive income while creating wealth for the…

It's human nature to be on the look out for threats. Our early ancestors had to be aware of threats every day. This same caution has been passed down thousands of years. Only today, our threats are much different. While threats like predators stalking our villages, or entire populations being eradicated by the plague no longer exist, we still have our own threats in today's society, from litigation to financial loss and health.

As real estate investors, we're aware of the risks associated. Litigation and financial loss are legitimate threats that happen all too often. We are aware of these risks, and therefore appropriately protect ourselves from them when possible. We carry insurance policies to protect against damages. We protect our assets with legal structures. We screen our tenants. All of these help protect our downside.

“The first rule of investment is don’t lose money. And the second rule of investment is don’t forget the first rule. And that’s all the rules there are” - Warren Buffett

Another way to protect your downside is by a supplemental insurance called a Home Warrant Policy or a Residential Services Agreement. A home warrant policy is an insurance policy carried by the homeowner, which covers standard appliances, HVAC systems, and plumbing. If one of these items breaks, you can be faced with a large repair bill or an even bigger replacement cost. A home warranty policy insures these items will remain in working condition, so long as the damage isn't from neglect or lack of maintenance in most cases. These polices typically range from $500-$650 per year and have a deductible of $75-$100.

Many beginning investors will try to do things on the cheap, and some even forego a Home Warranty Policy. If your systems and property are relatively new, then it might not be as much of a risk to elect out of a home warranty policy. However, if your property or appliances are on the older end with deferred maintenance, then it might be wise to pay for a home warranty policy. In many cases the seller or seller's agent will pay for this home warranty policy for the first year.

There is no one right way for everyone when considering insurance, asset protection strategies, and personal risks. Be mindful of protecting your downside, and look to increase your upside. With this principal in mind, you'll be more prepared to deal with the inevitable threats on your path to financial freedom and beyond.

Craig Cecilio is a principal in DiversyFund, Inc. and the founder and CEO of California Coastal Funding Group, Inc. He has worked in the real estate industry for nearly 20 years. Over the course of his career, he has participated in the development of over 1,000 single family residences in California as either a joint venture equity partner, lender or sponsor.

Mr. Cecilio also owns a California-licensed real estate lending business for residential renovations and ground-up construction (residential and multi-family) in California coastal markets such as San Diego, Orange County, Los Angeles and San Francisco, a loan servicing business and a real estate crowdfunding website known as Diversyfund.com.

Since 1997, Mr. Cecilio has financed nearly $1 billion of real estate assets, having raised over $100 million in debt or equity for real estate transactions in the last three years, and has developed and managed over $25 million of residential property (renovations and ground-up). Mr. Cecilio also manages a real estate bridge loan fund that pre-funds many of the transactions later sold the DiversyFund investor platform.

Mr. Cecilio is a graduate of the University of Colorado at Boulder.

Key Points

Crowdfunding, simply put, is real estate syndication leveraged with technology

Who should invest in real estate through crowdfunds

Using crowfunding opportunities to learn about real estate

What you need to do to be SEC compliant

Investing through crowdfunding vs. investing in real estate on your own

Lightning Questions

What was your biggest hurdle getting started in real estate investing, and how did you overcome it?

The typical hurdles of raising capital were the same for Craig as anyone else doing the same thing - developing the track record as a first time crowdfunding platform.

Do youn have a personal habit that contributes to your success

Craig is forward thinking and solution based.

Do you have an online resource that you find valuable?

Craig learns from the news and networks.

Investopdia

What book would you recommend to the listeners and why?

The Laws of Success in Sixteen Lessons by Napoleon Hill

If you were to give advice to your 20 year old self to get started in real estate investing, what would it be?

Buy more real estate!

Resources

Diversy Fund

Let’s talk about how we spend money. This isn’t some lecture about how you should forego that daily coffee and cut coupons so that one day you can retire. No one wants to hear that. But it is important to understand how you spend your money. Most people earn income from a job,…

Darren Weeks was an ordinary “working stiff” with a passion for investing. As a teenager, he began investing in penny stocks and mutual funds. He bought his first rental property as a student at the University of Alberta. But somewhere along the line, Darren started to blend in with the pack, to “go with the flow.” For several years, he did what everyone else was doing – working 9 to 5 to make ends meet and looking forward to the weekends. He worked in accounting and sales roles for a variety of organizations and never felt like he was getting the most out of life.

Everything changed in 2001, when a friend recommended Darren read a book called “Rich Dad Poor Dad” by Robert Kiyosaki. The book so perfectly articulated all of his beliefs about money and reignited the passion for investing he had in his youth. Shortly after reading the book, he made the life-altering decision to start Fast Track to Cash Flow, a company that would teach Canadians the principles laid out in the book, in addition to the lessons Darren had learned about money over the years. And the best part, all of Fast Track’s seminars would be free of charge!

Fast forward to present time. Darren has amassed an investment portfolio consisting of over 5,000 rental properties across North America, tens of millions of dollars in energy interests and hundreds of acres of land. He is also the largest individual shareholder in the Port of Falmouth, the world’s largest cruise ship terminal, which is operated by the Royal Caribbean Cruise Lines.

Key Points

How to find capital investors

Raising capital for other people's deals

Networking with potential investors

Don't mention a return to your investors, instead ask them what would make them happy

Working for someone in return for experience

Lightning Questions

What was your biggest hurdle getting started in real estate investing, and how did you overcome it?

Darren lacked money and the rules around borrowing money. Darren was creative in his approach and bought almost a dozen properties without any money of his own.

Do you have a personal habit that contributes to your success

Darren practices gratitude daily and credits much of his productivity to the Hoffman Institute

Do you have an online resource that you find valuable?

Rich Dad Radio with Robert Kiyosaki

Mastering the Rockefeller Habits by Verne Harnish, along with his weekly newsletter email

What book would you recommend to the listeners and why?

The ABC's of Real Estate Investing by Ken McElroy

Scaling Up by Verne Harnish

If you were to give advice to your 20 year old self to get started in real estate investing, what would it be?

Education. Darren recommends taking courses with money back guarantees. Take educational courses.

Resources

The Art of Raising Capital: for Entrepreneurs and Investors by Darren Weeks

DarrenWeeks.com

Black Rifle Coffee Company Canada

You as an individual have a set of skills particular to you. These skills are like a toolbox filled with tools. You can use them to work on, repair, and build many different things.

But just because a plumber has a pipe wrench, doesn't mean he is the best fitted (see what I did there??) to go wrenching on a fire sprinkler system. Just because the electrician has a ladder doesn't make him the best person to paint ceilings.

You see, everyone has a particular set of skills or tools. But more importantly the ones with the most success are those who know how to use their skills in a particular niche. The same goes for real estate investors.

For those of you who are starting out, and those who remember when you were just starting, understanding this toolbox analogy is important. Sure, each of you have the ability to buy a single family home, or wholesale deals to other investors, or even syndicate apartment buildings. But where is your niche? There are so many ways to make money with real estate. It's hard to be great at multiple, and impossible to be great at every way. So where is your niche?

Warren Buffet famously said " Diversification is protection against ignorance. It makes little sense if you know what you are doing."

What did Warren Buffet mean by this? The point of diversifying is to have losses offset by gains in other areas. However, the opposite is also true. Gains are offset losses.

So what does all of this mean? What's the point I'm making? Simple! Find your niche and excel at it. Become the best you can be. Develop all the skills required to be the best. Learn from the best. Surround yourself with the best. Soon enough, you'll be the best.

Tom Wheelwright, CPA, is the creative force behind ProVision, the world’s premier strategic CPA firm. As the founder and CEO, Tom has been responsible for innovating new tax, business and wealth consulting and strategy services for premium clientele for the past 30 years. Tom is a leading expert and published author on partnerships and corporation tax…

With the upcoming new year, many are focused on improvement – from physical, to mental and spiritual. People will set out with the “New year, new me” mentality, only to make it half way through January before reverting back to their old ways. Today’s episode will touch briefly on three different areas that will help…

There are lots of times we come across contradictions. For instance, on one hand your mom tells you not to talk to strangers. Yet, on the other hand you're told to treat everyone as you want to be treated.

Well do you not talk to strangers, or do you treat that stranger how you would want to be treated with a big smile and pleasant greeting?

Life is full of these conundrums, from social norms to laws and even business.

We're told to diversify by some and niche by others. Should you hold a small amount of real estate, along with some stock, bonds, mutual funds, and agricultural land? Or do you focus on a niche real estate strategy, such as house flipping?

Let's look at an example of contradicting strategies, particularly around real estate investing. In this example Sara wants to buy a fourplex, live in one unit and rent out the others. Sara wants to buy and live in a specific part of the city close to her job, her favorite restaurants, and shopping. However, nothing in her particular area makes sense for an investment property. In order to make this strategy work financially, she would have to move to a suburb of the city, much farther away from work, where property values are lower.

Sara has long realized that her market is not the best for investing and she realizes that she wants live by the saying "Live where you want and invest where the numbers make sense".

Sara finds herself torn trying to balance both this fourplex strategy and mindset. So what should she do? Should she move to where the numbers for a fourplex makes sense, or should she follow the mantra and live where she wants, while investing where it makes sense, even if these two things aren't related?

Many real estate investors are faced with decisions like this every day. Decisions that make you rethink your focus, or wonder if you even have one.

The problem and solution is different for everyone. Using your goals as a road map will certainly help you make these tough decisions along the way. They'll give you a single point of focus to follow. You'll be able to ask yourself "Does this decision help me achieve my goals?".

When you come across contradictions in live, the worst thing you can do is not make a decision. Don't let yourself be paralyzed by indecision.

Understand there will be contradictions, confusion, and conflicts in life. Tackle these head on. If you stumble, make the wrong turn, or get lost, simply use your goals to guide you.