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🧠Goat Quote

🪙Two Cents

As most of you know, I started investing in Real Estate when I was 24. The spark was initiated by a co-worker of mine who sent me a few e-books to get a better understanding of investing in real estate. My world opened up when I realized you don’t need to be a millionaire to invest in properties. The first concept I want to introduce to you is leverage. This is key if you’re looking to buy your first property through a conventional loan (like I did).

Leverage is the use of various financial instruments or borrowed capital aka: debt - to increase the potential return of an investment. There’s two benefits here:

1. Putting down a portion of the down payment (let’s say 20%) and getting a loan on the rest allows you to save the remainder of your cash into other investments. You’re not tied to just one investment and have the option to grow out your portfolio while diversifying your risk

2. Leveraging debt is a great way to use other people’s money to make you money. You will have to run your own numbers with each property but the idea is to use the bank’s money to buy an asset that creates a cash flow that allows you pay both the bank’s mortgage loan and allow for a profit in your business. At the risk of oversimplifying: borrowing at a 4-5% rate and receiving a 12-15% return to cover your costs

While leveraging debt can be a powerful tool for generating wealth, it also carries a significant amount of risk. If the investment does not perform as expected, the borrower may be unable to repay the loan, potentially resulting in a loss of the investment and damage to their credit score. It is important to carefully consider the risks and benefits of leveraging debt before implementing this strategy.

To read more about this concept, here’s a great article I found that breaks it down with examples: https://www.mynd.co/knowledge-center/how-to-use-leverage-real-estate

❗Lessons Learned

In the last 8 months, I’ve taken a lot of time to understand what it means to have a career that’s right for me. I realized what I was chasing was fulfillment in the workplace but I never really knew how to classify that. Later I learned about SDT (Self Determination Theory) that tells us that motivation, in the workplace or elsewhere, requires you fulfill three basic psychological needs - factors described as the ‘nutriments’ required to feel intrinsically motivated for your work.

1. Autonomy: the feeling you have control over your day, and that your actions are important

2. Competence: the feeling that you are good at what you do

3. Relatedness: the feeling of connection to other people

If these 3 basic needs aren’t met, employees often feel dissatisfaction with their job. Are you one of those people? How can you work with your manager to fill that need?

📝Featured Blog Article

If you’re like me and just need a little push to get you started in real estate, I’ve broken down the steps you need to take as you embark on this journey. While this is a super broad topic, I’ve tried my best to condense each action step you can take to take that first step. Reach out to me if you have any questions!

⭐Rad Recs

What if I told you most humans breathe wrong? It’s okay, I’d laugh too 😂. Reading this mind blowing book by James Nestor taught me to be more conscious about each breath I take. I was amazed by how little I knew about this topic and all the magical cures breathing right can bring into your life. From experiments on himself to studies showing how breathing can improve anxiety, depression, and many other things. Highly recommend you check this book out. Since I’ve read it, I’ve started 3 minute breathing exercises daily. It’s a small start but hey, at least it’s something 😛 

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