I want to invest in a real estate business but I don’t know how or which one should I invest in?

Good question!

It is really excellent that you are asking for help instead of just going out and buying a rental home since it is the most common trap that investor’s that are new fall into. Some of them spend years building up a tiny collection of 10 or 20 rental homes and work many hours per week as an underappreciated landlord. To answer your question you want to invest in large multifamily apartment complexes that are over 100 units as a limited partner.

You need to find a mentor to help you. Or, if you don’t want to find a mentor, get one hundred books from the library on investing and read them all. Then you can make a better informed decision. When I train mentees I focus on giving them the education they need to be successful, not teaching them the one thing that they want to learn.

Mentees come to me not knowing anything with a shiny object syndrome where they think that X or Y investment strategy their friend is doing or someone on YouTube is perfect.

These mentees often don’t know the basics of what is the difference between bond, equity, notes, etc. They can’t describe the relationship between interest rates and bond prices or how to evaluate risk through proper due diligence. All these skills can be learned.

When I mentor young entrepreneurs I spend time listening to them to understand how they think about business and where the gaps in their knowledge are. Each of them has weak points and these weak points are what I focus on. I don’t teach them what they want to know, I teach them what they need to know.

Many of them are not even aware of the massive gaps in their knowledge and how it will create problems for them later as an entrepreneur. I think it is irresponsible mentorship to just teach the one thing that a mentee wants to learn and not correct their weak points and mistakes.

Once you have this personal financial education you will know what options are available and be able to make intelligent and informed decisions.

Yes, it is not easy. It takes a commitment of time and money to learn how to invest. You can either pay money to a mentor that can help you or you can pay money by trying deals without having someone help you and losing money - either way you will pay money for your education.

You either will pay by learning from experience losing money on real investments or by learning from an experienced mentor. The most important thing is to keep a positive attitude and never quit.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com