Every sport has its rules. And if you are going to play the game, you need to know the rules of the game you are playing. Real estate investing is also a game with its own money rules. This means that you need to know the money rules of real estate investing if you want to invest in real estate.

The game of hockey has specific rules. If you want to play hockey, you need to know what the rules are and be willing to play the game by these rules. Can you imagine what would happen if you tried to play hockey with tennis rules? It wouldn't be hockey and it wouldn't be tennis. It's the same in real estate. You can buy real estate with consumer rules and you can buy real estate with investor rules. What happens when you attempt to invest in real estate with consumer real estate rules? Often, you will end up with a result you don't want.

What are consumer money rules? First of all, when you buy real estate as a consumer, it's all about you and your money. In order to buy a property using consumer rules, you need to have excellent credit. You need to have enough money to make a down payment.

Those consumer money rules often get in the way when you want to become a real estate investor. When people think they have to invest in real estate the same way they invest in their own personal property, they create obstacles to their investing success.

Many people don't have enough money or credit to buy their own homes. If they can't buy their own homes, how can they afford to buy investment property, using their own money and credit? This is especially true when property values are expensive. And in such markets, it is usually impossible to collect enough rent from a property to cover the mortgage. This means that when people try to buy investment property using consumer money rules, most people can't even get started.

Even with these limitations, people do build real estate portfolios following consumer rules. The problem with this method is that it all depends on your money and your credit. You can create wealth this way, but it is a long and hard road to financial freedom.

It's an interesting reality. We all live on the same planet together, but consumers and investors think different about money. The most successful real estate investors know that there is a different game with a different set of rules. Investors play the real estate game with a different set of money rules.

This means that the first money rule of a successful real estate investor is to invest with investor money rules. When you buy property as a consumer, the focus is on you and your money. When you buy property as an investor, the focus is on the deal itself. It's not about you. It's about whether the deal makes sense. This means that you don't necessarily have to have a lot of money or excellent credit to invest in real estate. You do need to know the difference between consumer rules and investor rules. This is very good news for people who want to invest in real estate, but don't have much money or great credit.