Show 78 - The Downs of Real Estate Investing as a Teacher
In this episode, I talk about my experience with real estate investing and how it went wrong.
3/27/20251 min read
Real estate investing is one of the most powerful engines for building wealth in the world, but it also has many downsides that you should be aware of. In this episode I share my real, raw experience with the bad side of real estate investing so you know what you’re getting into and what could go wrong if you’re not cautious.
Show Notes
shaunkmorgan.com (ask your principal about bringing me to your school to speak!)
Recommended Books (Amazon Affiliate Links)
How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started
Key Ideas
You must have a SUBSTANTIAL amount of cash on hand to weather the storm.
You have to have thick skin to kick people out who aren’t paying (no matter the excuse!)
Evictions are costly and can be gross.
It is a people business more than a house business, so don’t expect to do it all “mathematically” you must build a relationship with your tenant.
Do your due diligence, then do it again! I got hosed twice by incorrect valuations from experts that I trusted.
You can lose actual cash much faster in real estate than in stocks.
I’m not saying don’t do it, but don’t do it poorly or haphazardly. Be cautious and you’ll do fine.
Bonus Tip
Here is a bonus tip I didn't get to in the episode.
Partnering is a great way to get started in real estate if you can find a more experienced partner to work with. Having some part of an actually good deal to get your feet wet is better than having all of a bad deal. Learn from a mentor!