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This Army Veteran and Real Estate Investor Shares His Top Tips

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“Ever since I was little, I wanted to start my own business.” with a veteran real estate Investor Andrew Davis said: “I think a lot of kids like to do something lemonade stand — It was a real thrill when you were younger. So it was already in the back of my mind. “

Courtesy of Andrew Davis

Davis graduated from the United States Military Academy as a signal officer before starting his own business. west pointHe then served in the Army for eight years, five of them 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 had family involved real estate After talking to them and doing some more research, he decided to give it a go. In 2014, he started his new career with his New Western. 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 holding back just to buy.” Rental property Modify and flip properties and use your earnings to buy more properties. “

entrepreneur sat down with davis before veterans day Discuss how his time in the Army helped prepare him for a successful career And what would-be investors should always keep in mind — no matter what the market is doing.

Related: 6 Ways Small Business Owners Are Celebrating 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 move forward in a full-time career. Real Estate InvestmentHe says much of what he learned at West Point and beyond can be applied to his new business.

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 lead Run your organization effectively.

“It helped us wire the engine efficiently,” Davis explains. [to that].”

Another important skill Davis honed in the military? adaptability 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. Although the market heated up rapidly, after coolingrewarding investors who continue to rely 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] What’s going on now?” Davis explains. “There’s a lot of talk about interest rates going up, but it’s a long road.”

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. Hard work Also, being persistent and working hard can go a long way, especially during difficult times. “

As he began his real estate investing career, Davis prioritized buying and holding Rental propertyOwning 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 early entry Real Estate Investment Davis recommends “brushing your teeth” on simple projects such as refurbishing the cosmetics you rent before considering properties with potentially more complex and risky modifications and flips.

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 them young investor If you’re 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 people who have stuck to the process and been persistent. 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 was really hard to find the same amount. Correction and Inversion It’s possible, but not impossible. While some of my investments slowed down, the focus was on the property management business. With the real estate market slowing down, this could be a great buying opportunity. So things are definitely changing inside and out. “

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.

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