Have you ever wondered what some of the classic real estate investing mistakes are? Today’s guest, Alvin Pereira has lived through a few, and is here to explain the two big lessons he learned from purchasing his first property.
On this episode of Investing in Real Estate, Alvin shares exactly what went wrong with his first investment, and how he has grown as an investor from the experience. We’re also discussing using real estate to mitigate overall taxes, and what it takes to make the leap into investing!
More About This Show
Alvin began investing in real estate at a young age. Around the time of the 2008 housing crisis, Alvin was just 19 years old, and he bought his first single-family home in his hometown of Orlando. At the time, he had just graduated college and embarked on his career path.
He was still living with his parents, and had some extra money to throw around. He thought it would be a good idea to start looking into real estate so that he could operate as a business, as well as get his feet wet in investing.
However, he made a mistake that I call the “allure of the first property,” and thought it would be simple to manage the property himself. Because he relied so heavily on the income from this rental, he essentially became a 24/7 on-call maintenance man.
Alvin wasn’t running his rental like a business. It became too difficult to manage the property, and the commitment began to affect his personal and professional life. At the end of the day, he ended up selling that property.
Today, Alvin owns four properties, including two homes through Morris Invest. These properties have been a much different experience than his first investment in Orlando. He learned to release some of the control that he previously had. Alvin knew that if he wanted to succeed, he'd have to be well-researched, and also get outside of his comfort zone.
Overall, the experience has been positive and Alvin continues to grow his network of fellow real estate investors. He is passionate about learning more about real estate investing, and he has found that the more his network grows, the more options are available to him.
Looking forward, Alvin plans to continue attaining buy and hold properties until he reaches his Freedom Number. Once he has acquired between 15 and 20 properties, the income will surpass his family’s total earnings.
He explains that once he established what his Freedom Number was, it became very clear how to move forward in order to reach his goals. Having a specific goal made his plan of action much more attainable than simply hoping to have an excess of money.
On today’s show, Alvin and I get specific about getting outside of your comfort zone, his experience with flipping houses, and how you can get started achieving financial freedom. We also talk about traditional mortgages, the importance of a strong property management team, and how to appropriately assess the risk of an investment.
We want to help you reach your goals, and learn more about earning building wealth for you and your family.
On this episode you’ll learn:
- What was Alvin’s biggest mistake with his first property?
- The lesson Alvin learned from renting to a family member.
- How to understand the defining characteristics of different housing markets.
- How to make yourself appealing to private investors.
- And much more about buy and hold real estate!