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From Learning to Earning: How Financial Fluency Drives Success in Real Estate Investing
Nicholas Burrus & Cristina Lee
December 11, 2023
Presented by Astra Properties LLC
From Learning to Earning: How Financial Fluency Drives Success in Real Estate Investing
By Nicholas Burrus · 12/11/23
Thanks for tuning in to this week’s read! Read time for this week is roughly 8 mins.
Happy Monday! 🫡
It's a beautiful day and we hope you had a solid weekend.
There's no shortcut to success in real estate investing - or anything in life.
You have to put in the work to become better at what you do.
That means getting the right training, building a portfolio, and managing your investments.
This is what we’ll be talking about today - so let’s get to it!
Continuous learning is your ticket to business success
As an entrepreneur, business owner, investor (the list goes on), you'll make tough decisions daily as you grow your business.
Without foundational skills and knowledge, you can't make smart financial decisions, navigate a down market, or manage your investments.
So before pouring your hard-earned money into anything - invest in yourself.
This will be the best business decision you will ever make.
Diversify your funding 💰️
It's never a good idea to depend on a single funding source, like a bank loan or that one friend “investor” who says they’ll help fund a deal but then is no where to be found when you bring the deal.
Keeping your options open is the 🔑 to success
If an investor backs out, you have no other way to fund your business.
Diversifying your funding sources minimizes risks while making your business resilient and secure, especially in this economy.
This goes for all businesses, not just real estate and investing.
How to acquire financing for your business? Try these strategies:
Team up with venture capital firms: This is the best strategy for startups or new entrepreneurs who need to finance a fast-growing business. Usually, these companies invest in exchange for equity. But to secure funding, you have to present a great proposal.
Private investors: These are individuals who provide "capital" to entrepreneurs in exchange for ownership equity (depending) or other investment returns. Private investors are willing to take higher risks for projects with potentially high gains. This strategy will help newbie entrepreneurs gain valuable support, expertise, and meaningful connections.
Crowdfunding: Startup supporters like GoFundMe and Kickstarter present a unique way of raising funds. These platforms let you acquire capital for your business while marketing your products to a broader audience.
Government programs: The government has several programs and incentives to fund startups in different industries like technology and research and development. As long as you qualify for these programs, you can acquire government grants to fund your business.
Leverage technology 🤖
Use technology to your full advantage to make better business decisions.
We’re not talking about scammy investing apps here.
There are many accounting and business management tools you can use to organize the paperwork, track your business's cash flow and expenses, and manage workflows, such as:
Some accounting apps let you get real-time reports on your financial standing, forecast valuable data for future planning, and identify weak spots in your business process and/or strategy to prevent inefficiencies or overspending.
Take advantage of tax benefits 📰
Your business could qualify for some tax incentives to lower your expenses.
Lower the expenses, more can use your capital for further expansion.
Hire an accountant and work with tax professionals and real estate experts (that’s us! maybe?) to develop a low-tax financial plan.
Build your network 👯
Connecting with like-minded individuals is beneficial to your business in many ways.
How?
Networking events!
Connections with the right people can lead to mutually beneficial partnerships, access to new markets, and support from industry leaders.
You’d be shocked with who might be interested in working with you or helping you grow your business
Teaming up with legal experts and other investors, lets you gain invaluable advice on contracts, deal structure, minimizing risks, and more.
Be sure to vet potential partners. Make sure their objectives align with yours to make the partnership mutually beneficial.
Bottom line: You can only achieve success if you are investing in your financial education.
Luck is one thing, but luck is no more than preparation meeting opportunity.
💫 What Else is Poppin? 💫
Sam Altman is Time Magazine's 2023 CEO of The Year
Why do you talk about Sam so much? Good question, I’m not sure either?
The twist no one knew was coming.
Sam Altman, OpenAI’s founder extraordinaire, was named Time Magazine's "CEO of the Year" for his contributions to the tech industry.
His brainchild, ChatGPT, changed how entire industries do business. Altman’s expertise in AI tech also led to significant leads in customer service, research, and technology.
It's been a strange year for Altman, who was voted out of the company he founded back in November for lack of trust, only to be reinstated five days later.
It's safe to say that 2023 was Sam Altman's year, after all.
How Millennials and Gen Z are riding out the tough housing market 🏡
House hacking
You’ve probably heard of it as the term is thrown around like a used towel.
Rising prices and interest rates made it nearly impossible for many to own a house. But smart homeowners can find a side hustle despite persistent rental market inflation-
House hacking.
With 30-year mortgages reaching an all-time high in 23 years, the idea of renting unused spaces became more appealing for younger homeowners.
House hacking is the practice of buying a property - a duplex or triplex usually - and living in it while renting out the other units.
About 55% of millennials and 51% of Gen Z homeowners are keen on house hacking to offset the costs of owning a home while making money on the side.
Some thoughts to keep in mind:
Find a good agent who can help structure a deal, and assure you make a solid buy
Consider buying down the rate of your loan, to increase cash flow opportunities.
Make sure you’re comfortable living next to your tenants (some folks like the idea until they do it)
Weekly Mindset Check In 💡
Gratitude is this weeks topic.
Take a small moment everyday to reflect on the things you are grateful for.
Reflect on the accomplishments you’ve made, the people you have in your life, where you are now compared to last year, etc.
We live in a “hustle” culture which means people only focus on being productive and moving the needle, rather than being grateful to what they have and have built.
Recently I’ve been doing this more frequently, and have noticed a spike in my mood and also production.
Reflecting (for me at least) reminds me of my “why” and what / who I do it for.
If you don’t already, take the time this week to implement daily gratitude and reflecting.
You’ll be amazed by the results!
Remember to water your pot daily 🙂
Catch the latest episode of the AstraCAST podcast!
Have you subbed to our podcast yet?
You can catch me and Marcos on YouTube, and soon Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.
Don’t be shy, check us out here!