In this episode, I talk about how your business changes after you get your first check. What I mean by getting your first check is getting the profit check on your first deal. When this happens, everything will seem a little bit more clear and you will feel unbelievably empowered and motivated! Until you get your first check, all you’re doing is fantasizing and imagining what it will be like to be a real estate investor. When you get your first check, you are officially in business!
A common topic that comes up when I interview real estate investors and real estate professionals is how everything shifts into gear once you start making money in real estate. It is unbelievably exciting, exhilarating, and most of all motivating when you get your first profit check. I remember when I got my first check. I felt so unstoppable and like there was nothing I could not do. Additionally, it helped my wife go from being cautiously optimistic about our business to wanting to do another deal right away! Success can make you fearless. That fearlessness will translate, many times, into massive action and continued success.
I always tell new real estate investors that I suggest they use some of their first profit check to do something enjoyable to celebrate their success. Ever since our first deal, my wife and I will sometimes use a portion of the profit to go out to a nice dinner. We agree to not look at the cost of anything. We order appetizers, entrées, and desserts. It is a feast fit for a king and queen! It is a little bit extravagant, but that’s the idea. It’s a reward for a job well done. That is our reward. You should come up with your own idea of how to celebrate your successes. Maybe it’s a trip, maybe you buy yourself something you have always wanted. I wouldn’t suggest spending all of your profits on toys, but a certain portion should be dedicated to celebration.
Of course, any smart business person knows that the majority of your profits should be reinvested back into the business if possible. That is the only way to quickly grow your business. If you take all of the profits out of your business and spend it on things other than your business, you may have a difficult time growing your business as much as you would like.
A few things that you might consider spending your profits on in order to help grow your business are the following:
- A website
- A new camera to take pictures of your property
- Taking potential partners and or private investors out to lunch or dinner
- A fund that you grow in order to pay off rentals, or fund flips
It’s your money, and you can definitely choose to spend it any way that you like. But reinvesting in your business will always pay off in the long run. Take a small portion and have fun with that, take the rest and let it fuel the fire of your business! Before you know it, you will be collecting your second profit check!