Six Pivotal Questions you should ask yourself when Starting to Invest in Real Estate



Gena Lofton is a real investor in MC Companies. I wanted to share her story because she was like a lot of you, starting out with no real estate and no experience.

Remember Gena was not a trust fund kid, she worked very hard for the money she saved and once she had enough for a down payment she made a great first step and bought a town home in Southern California. She then saved up enough for a duplex as well. She leveraged her debt and had her tenants pay her mortgage. She then decided she wanted to scale bigger and this is where her lesson's began.

Always remember very little is learned when you are making money. Most lessons are learned when you are losing it.

 She started out by hiring the wrong partner to invest her money properly. As she states in the video, "A lot of people you see on social media have never even done a deal. They just think they know how to do it." It also is a red flag if they only use your money and not their own.  You only want people that feel comfortable enough to invest their own money in a deal alongside yours. She then states that I have been a great partner and she trusts me with her money. Gena is a very honest and tell it like it is women. You need to check out the video!

Full Transcript Below


How Did You Get Started?

Well hello everyone! My name is Gena Lofton. I am an investor, a full-time investor across multiple asset classes. The way that I actually began is I started with a little purple book which all of us probably did called Rich Dad Poor Dad and that kind of got me on my journey maybe a little over a decade ago and I made a lot of errors along the way and I still make them. I'm still learning and I think that is the process that one goes through and I invested in a let's just say a town house in Southern California and that turned into another kind of a duplex and then I started doing value add real estate and got out of the rat race and now I just continue to do it over and over again. So that's how I started and today I have about four thousand doors and built another. All I do is buy and build assets that generate income, doesn't really matter what kind,


What Has Had The Most Positive Impact On Your Investing Career? 


So I just want to share with you a little bit about what has had the positive most positive impact on my investing career is really surrounding myself with other people who actually can improve my game rate. I mean, when you are you know most of us for trying to go to school get a job and then you work someplace and until you're you know dead whatever so there aren't a lot of people who are investing and who do this for a living and so the most positive impact that I've been able to gain is by being around other investors because I can learn from other people and that's pretty much the biggest impact is finding my tribe and then actually trying to learn from them.


What Has Been Your Biggest Challenges? 


Alright so let me talk a little bit about what have been my biggest challenges so you can try to steer your way from those challenges. Okay many times there are people who are teachers and/or entertainers that are training people on what it is that they do and many of them are not actual investors they don't actually do anything they are theoretical people there are academic people there are entertainers there are instructors so I try to steer my way away from those people who are that way and the majority of the people in let's just say the media today are these online courses that you go through they don't actually own any assets imagine that they just actually teach something that they don't actually do so it's kind of those fake people I call it and that's actually pretty scary because they're raising capital from many different people and all of those people are gonna lose so much money and that's what scares me. I would suggest that everyone steer away from that as much as possible in order to prevent yourself from losing a lot of money.


What Would You Do Differently?

Knowing what I know now let me say what I would do different because most of us start off if you understand anything about the quadrant, basically a book by Robert Kiyosaki called the cashflow quadrant and it has four different types of income right so you have the employee you have the self-employed or small business owner on the left side um and then you have the business owner and investor on the right-hand side and most of us kind of start off on the left-hand side of the quadrant we all of us go to school and we are taught to go get a job which is actually on the left side of the quadrant what happens to be the highest tax income and no one tells you anything you just kind of do it because that's what you're told to do and you did everything you were told to do correctly.

So I actually would argue and actually recommend to people try to actually move to the other side of the quadrant as fast as possible and that's when 95% of the wealth is created in society today and that's as a business owner an investor okay the faster you move over to that side the more time you have to actually build compounding wealth right because your taxes are less and you have more time to actually build wealth. So um in a nutshell move yourself over to the right side of the quadrant as a business owner and investor as fast as possible regardless of where you start off okay.


How Important Is Education?

So let me say that education is so important in your investing career I am very curious I think education and curiosity is vital and anything that you do be curious. I don't care where you go to school I don't care what degrees you have you could be a high school dropout for all I care just be curious because when you're curious you want to understand how things work and I see so many people who try to be investors that don't even know what a tenure bond is that's pretty scary you should know that intimately if you don't then you go and find out what it is and you could only do that by having a curious mindset and when you're a curious mindset then you begin to get yourself educated because without education you will fail so why set yourself up for failure when you can just begin learning.

Okay I always can actually impacted my lifestyle and my investing overall so a couple of things one is I have my own little small apartments value add in Southern California and then there weren't anymore after the collapse I mean it was just a really like 18-month 24 hour 24 month period that was a good time after the collapse to buy there was no more to buy so I said well who am I going to actually now believe in that can do value at it because I had been burned before by all of the fixtures that are out there that think that they know how to do value at it real estate and really what they mean is putting a lipstick on a pig I don't mean putting lipstick on a pig when I say value at it real estate I mean I'm going to get a liquid the event after I increase the income and I'm going back to the bank to get what's called a cash out refinance. It's a very specific definition unfortunately very few people have the same definition of what that term value add means so because Ken has the same definition that I have right I found a partner that I can deploy capital in that's gonna respect my money as if it's his do you know how much that means because I've lost money before and it it took a long time to make okay a long long time and I didn't come from anything and it is appalling when somebody does not respect your money as if it's theirs all you syndicators raising capital I'm serious about this I don't care who you are you better stop disrespecting people's money and raising capital because you do not know what you're doing and you're gonna lose investors money alright.


How Has Ken McElroy Impacted You?


So ken has changed my life because I can now entrust in somebody who's gonna respect my money and make sure that I continue to grow my wealth that's very very important to me because I can't do this by myself. The other thing is I don't even want to. He has a construction company with MC companies Ross McCallister. Look, I don't have the balls to build big buildings I don't I wish I did I used to want to be a builder that ain't me I could take an existing building and make it do what it does but I'm not gonna be that builder that Ross is and the other little sweet secret weapon is having Patti because she makes that property look like Neiman Marcus on a target budget okay so because all of that I'm able to now sleep at night knowing that Kinney is actually going to take care of my assets okay because those assets put food in my mouth every single month that's how I eat I don't have a job I'm unemployable would you hire me? No. I'm unemployable okay so um I think that sums it up as to what he's done in my life

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