If You’re Lacking Capital
If you’re lacking capital, the best thing you can do is invest in yourself. Let’s say you have between $200 to $500 to invest. You should put it towards your skill set and any equipment that’s going to make you better at whatever you’re trying to become more successful at. That’s going to be one of the best ways you can really grow, by investing in yourself. You can never go wrong investing in yourself because you will always be growing and becoming more intelligent by building your experience. It just multiplies how much more you can create by investing into yourself. That’s the number one thing you should do if you’re limited on capital.
Building Your Skill Set
Let’s say you spent a lot of money on yourself by building up your skill set, experience and knowledge and now you have some money coming in, but you really want to scale to even greater heights. The next best thing you can do is find somebody who has capital, and if they lack a skill set that you can offer them, then you can build upon a mutually beneficial relationship. This way you’ll both be successful.
Being resourceful and creative is another great way to become successful. You have to figure out how to solve problems and provide good value. For example, let’s say you invest into real estate. You have to provide a good value to your residence. There’s going to be work orders and different problems you’re going to have to solve on a daily basis. The level of resourcefulness you have is important. Being resourceful is much more important and ultimately more valuable, than having the resources. Someone who is resourceful is going to be stronger than someone who just has the resources. They most likely can go out and get more resources, so it’s just really important to invest in yourself. That’s one of the best ways you can grow on a limited budget and that’s what I would recommend to start doing immediately.
Once You Start Investing…
Once you start investing and creating a lot of success, you can start scaling and building your team. When we were growing, we had 5o units we had to sub out. There was a lot of work to get done with all of the work orders for our real estate properties. As we acquired more and more units, we were able to build a maintenance team who performs the work orders for our residence. For example, someone might have a clogged toilet or maybe their kitchen sink is clogged. We have people on our team who are able to solve these problems. As you grow and hire a team, you’re able to make more money by becoming bigger and more successful. You’ll be able to create more success, streamline tasks, make more money and increase your margins.
One Of The Best Parts Investing Into Real Estate
One of the things that I love most about investing into real estate is you can take a property, build up the value, and refinance it. You can take the equity you’ve built up over time and reinvest it into another real estate asset. I was just talking the other day about how we took a seven unit townhouse building and bought it for $500,000. It was one of the first deals that I had done with my father. We turned it into a million dollar property within a year. Basically, we took the extra $500,000 and, after paying back our improvement costs, we used that capital to reinvest it into other real estate projects.
That’s what’s thrilling and exciting about real estate. You are able to refinance and recapture your equity you initially invested into the property and put it into another deal. It’s an exciting process and that’s how you multiply your money. You’ll create a ton of success using that model when you’re scaling your business.
All of the above are ways you can begin investing if you’re lacking capital.
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