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Joe Fairless Provides Tips on Investing in Commercial Real Estate
Joe Fairless is the co-founder of Ashcroft Capital, a firm that has more than $1 billion in assets under management. He’s also the creator of the podcast Best Real Estate Investing Advice Ever, generating more than half a million monthly downloads and the longest-running daily podcast in the industry. Cutting out the fluff and getting down to business, Fairless gives his tips for getting started in investing.
There Is No Perfect Time
Fairless says that if you’re coming up with reasons to hesitate in investing, you should know that the habit can quickly turn into a lifetime of indecision. This is not to say that jumping in without looking is a smart idea, but that there is no such thing as the perfect opportunity. Even things that look like sure-fire bets can fall apart.
The good news is that taking the risk is more likely to pay off than not. Getting your hands on a physical asset, one that is versatile enough to adapt to future needs can have untold benefits for your portfolio. When Joe Fairless hosts his podcast, he talks to people who seized on opportunities, as opposed to letting them languish until something else (e.g., finances, family, etc.) in their life changed. Opportunities often don’t last long, and when you pass on them, there aren’t necessarily hundreds more waiting to take their place.
Don’t Be Afraid to Start Small
Sometimes, just getting your feet wet is enough to lead to something far more lucrative. Fairless talks about professionals who thought big, only to find that it just took one major event to have everything come crashing down. Smaller deals often give you the chance to be more involved with the execution of the transaction, which can teach valuable lessons without being subjected to devastating consequences should things take a turn for the worst. This is certainly poor advice for anyone who wants to be a passive participant in their investment, but Fairless warns that there’s really no such thing as free money — at least not when you’re first getting started.
Joe Fairless on Exercising Your Patience
Commercial real estate investing can look incredibly dynamic when you’re on the outside looking in. All those deals, all that money, all those relationships can seem like a fast track to success. In many ways, there’s truth to this perception. However, Joe Fairless can tell you that there’s a very different side of the industry for you to uncover, and it’s likely one that you’ll get to know at the beginning. While instant fairytales can happen, investors may have to resign themselves to a slog before they can hit the next level.
That plod, much like the advice to start slow, can have a lot to do with your profit margins though. When you’re building that foundation, it doesn’t always take long for that stability to yield more than enough wealth for you and your family. Fairless says that success stories are those that leverage their assets and give them enough time.