[ad_1]
“Ever since I was little, I knew I wanted to start my own business,” says Army veteran and real estate investor Andrew Davis. “I think a lot of kids love doing lemonade stands. I got a real thrill out of it when I was younger, so it was already in the back of my mind.”
Before starting his own business, Davis graduated from the Military Academy at West Point as a signal officer. He then served in the Army for his eight years, five of which were on active duty. But Davis knew he didn’t want to spend his entire career in the military.
So he started looking for other options. Davis already had a family member in the real estate business, and after speaking with them and doing some more research, he decided to give it a go. In 2014, he started his new career with his New Western. New Western is a private he marketplace for fix-and-flip residential investment properties.
Davis slowly began buying rental properties, working part-time at his new venture while he was still in the Army.
“I wanted to get closer to the front lines on the ground because I wanted to know a little more about the industry,” Davis explains. “I graduated from buying and holding rental properties, repairing and flipping properties, and trying to use the proceeds to buy more properties.”
entrepreneur We sat down with Davis before Veterans Day to learn how his time in the Army helped prepare him for a successful career in real estate investing, and what would-be investors always keep in mind. We talked about what we should do.
RELATED: 6 Ways Small Business Owners Celebrate Veterans Day
“When you’re learning the art of war, you’re breaking it down into strategic, operational, and tactical levels. You can do the same in business.”
By the time Davis left the military, he was confident in his ability to advance a full-time career in real estate investing. Much of what he learned at West Point and beyond can be applied to his new business he says.
One particularly useful course at the Academy was called “The Art of Military Warfare.”
“Best business class ever,” says Davis. We do the same thing in business — how we run our business strategically and operationally. ”
Additionally, Davis’ time in the Army taught him how to effectively lead and run an organization.
“It helped us wire the engine efficiently,” Davis explains. [to that].”
Another key skill Davis honed in the military? Ability to adapt and plan accordingly.
Davis points out that real estate is always in flux, and you need to assess situations and hurdles as they arise and respond in a timely manner.
The impact of Covid on real estate is a good example. The market quickly heated up but then cooled off, rewarding investors for their continued reliance on sound business principles.
“It’s important to learn the basics of business early on so you have a business plan that you can change and take shape no matter what the market does. [suit] Davis explains:
RELATED: How Entrepreneurial Billionaires Prepare for a Recession
“No matter what happens, the principles remain the same.”
What does holding these business fundamentals look like in practice?
“No matter what happens, the principle remains the same,” says Davis. Persistence and hard work go a long way, especially during difficult times. ”
When he began his real estate investing career, Davis made buying and holding rental properties a priority. Owning a rental comes with some stability, he says, because you’re basically guaranteed the rest of your monthly income. Generally, these properties are rented, he explains.
For those just beginning their real estate investing career, Davis recommends starting with simple projects like cosmetic renovations for rent, before considering properties with more complex and riskier potential modifications and reversals. We recommend that you brush your teeth.
When you buy a property and add and install its “value-added components”, you can expect it to be even more valuable when completed. But that assumes the market remains consistent, for example, doing in 2022 what it did in 2021. Of course, this is not always the case.
“Peeling the onion in the grounds leaves room for things to turn sideways,” Davis says. Maybe your supply chain is in turmoil. [fix-and-flip] It can be a profitable business, but in my opinion there is more risk involved in that business model. ”
RELATED: How to Find Funding to Start a House Flip Business
“The learning curve is steep and many people have negative experiences early on.”
Whether you’re buying to rent or to flip, Davis suggests a few key things to keep in mind.
For young investors just starting out, Davis recommends taking the process easy.
“I see a lot of people who get aggressive early on,” he says.it depends on the person [if they’re going] hit a wall at a million miles an hour [into it], can bounce off walls. ”
Davis also warns against believing anything that makes the corrections and inversions seen in many TV shows “look like a piece of cake.”
“Many people have a negative experience early on because the learning curve is steep and most flippers cut teeth on bad projects,” he explains. Many of our veteran investors are process-obsessed, tenacious people.When there was a lesson to be learned, they learned it and applied it to their next project.”
Additionally, Davis suggests that a few things are on the way. That way, if one area slows down, another component can compensate.
“For example, I started a property management company in 2020,” says Davis. “It’s not impossible, but it’s been really hard to find the same amount of corrective and reversal opportunities. It could be a good buy because the is slowing down, so things are definitely changing.”
Those who ease their way into real estate, apply what they learn along the way, and eventually spearhead multiple projects at once are in a position to build a lucrative business.
“As far as the actual investment goes, I only own real estate,” says Davis. “It’s a timeless venture. When you analyze a lot of investments, it comes down to supply, demand and ability to pay. I’m a big fan of consumer staples like grocery stores and real estate. The demand for shelter.” And since many of these structures will last for generations, they are a great place to deposit your money.
[ad_2]
Source link