Yogi Berra is said to have said: “You’ve got to be very careful if you don’t know where you’re going, because you might not get there.” I believe this to be true especially in the world of real estate investing. There’s a great deal of misconception that success in the real estate field is achievable with some education and little or no real life experience. The internet has made it easy for rookie investors to gain access to a myriad of articles, books, youtube videos, and webinars on the subject of real estate investing. This is a wonderful thing indeed, but theory does not replace real world experience. Especially, in the eyes of commercial lenders.
I want to address today the most important factor in achieving personal success in the multifamily market. You probably guessed it by now. It is experience, experience, and experience. Nothing can replace the experience an investor gains through years of sweat, commitment, and inevitable failures. No one got to the top without these elements, no one was handed a magic wand to turn their wish into reality. And not everyone that tried succeeded either.
I talk to many potential clients. Many have no real estate experience and some have limited experience, but not in the multifamily arena. Residential experience is good, but not enough to take on a first time intimidating commercial project. It’s about one in a hundred who is a seasoned apartment building investor. The rest are still in the dreaming stage or overreach by trying to take on too much too soon.
One may ask how does he get there, how does a person travel from point A to point Z? First, it’s important to recognize that this is not a straight shot. There are steps called stepping stones, which cannot and should not be bypassed as they are important. From point A to point B, then to point C, and D, and so on. Each of them represents a valuable practice lesson which in the big scheme of things will help the individual get to where he/shewants to be, it’ll turn him/her from an ordinary person into a seasoned investor. The road from A to Z entails sacrifice, focus, and the strength to stand up and move forward when failing.