When most people think of JL Collins, they think of smart stock and index fund investing. In his classic, The Simple Path to Wealth, JL lays out the foundational path that investors can follow to secure financial freedom simply, easily, and without a ton of stress. So it may come to many FI chasers’ surprise that JL has written a new book on real estate investing, and not index funds, the stock market, or our current state of high inflation.

In, How I Lost Money in Real Estate Before It Was Fashionable, JL lays out, quite candidly, how not to invest in real estate. And before you get mad about that type of advice on a BiggerPockets Podcast, please note that JL isn’t saying to NOT invest in real estate, but to invest in real estate in a smarter way than he did.

JL is the first to admit that real estate is a phenomenal way to build wealth, create passive income, and retire early. But, if you haven’t fulfilled your 250+ hours of real estate investing education, you probably shouldn’t be purchasing income properties. In today’s show, you’ll hear JL explicitly list out all the mistakes he made when investing, and how you can mitigate these risks and come out profitable instead!

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Join the BiggerPockets Money Facebook Group:
https://www.facebook.com/groups/bpmoney
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Catch Up on JL’s Past Episodes of The BiggerPockets Money Podcast:
Episode 20: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-20-the-simple-path-to-wealth-index-funds-explained-with-jl-collins?utm_source=youtube&utm_medium=description&utm_campaign=none
Episode 116: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-116long-term-investingcovid-19-jim-collins-jlcollinsnh-com?utm_source=youtube&utm_medium=description&utm_campaign=none
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Visit JL’s Website and Grab His Books:
Website: https://jlcollinsnh.com/
How I Lost Money in Real Estate Before It Was Fashionable: https://www.amazon.com/Lost-Money-Estate-Before-Fashionable/dp/173772412X
The Simple Path to Wealth: https://www.amazon.com/Simple-Path-Wealth-financial-independence-ebook/dp/B01H97OQY2/
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10 Lethal Mistakes to Avoid on Your First Real Estate Investment:
https://www.biggerpockets.com/blog/2016-03-22-10-lethal-mistakes-avoid-real-estate-investment?utm_source=youtube&utm_medium=description&utm_campaign=none
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6 Rules for Managing Your Contractors:
https://www.biggerpockets.com/blog/2010-04-14-6-rules-for-managing-your-contractors?utm_source=youtube&utm_medium=description&utm_campaign=none
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Want to Be a Guest on the BiggerPockets Money Show? Apply Here:
Guests: https://www.biggerpockets.com/guest?utm_source=youtube&utm_medium=description&utm_campaign=none
Finance Friday: https://www.biggerpockets.com/financereview?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 285

Show notes at: https://www.biggerpockets.com/blog/money-285?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
03:33 A Decade of “Stagflation”
08:00 How to NOT Handle a Home Renovation
25:05 Staying Cautious in a Hot Housing Market
33:04 Five-Figure Losses on One Apartment
43:44 Capital Gains and IRS Troubles
47:17 Real Estate Mistakes to Avoid
59:07 Dealing with Investor Stress
01:02:57 JL’s Newest Book
01:10:45 Taking JL’s Lessons to Heart