Are you prepared to begin investing in real estate but unsure of where to start?
Afraid about making a HUGE error?
Are you experiencing analysis paralysis?
Not by yourself! At the start of their investing careers, almost all real estate investors had to invest numerous hours researching the different tactics to determine where they should start.
There are three crucial inquiries that any prospective investor should ask, even if there is no one correct response that applies to everyone:
- How much TIME must I commit?
- How much money must I put up?
- How quickly and how big do I want my company to develop in the long run?
Having a clear end goal in mind before creating a strategy to achieve it is a great approach to get any project off to a great start! Even while you will inevitably have to make changes along the route, the “getting there” portion is a lot of fun.
Real estate investing has the power to fulfil all of your financial goals, from teaching you how to quickly (in 30 days or less) put an extra $5,000 in your pocket each month to providing you with an annual after-tax income in the millions of dollars. You really must determine up front whether you want to become a multi-millionaire or just need some fast cash to pay your bills.
Whatever your goals are and how you plan to use real estate outsourcing investing to achieve them, we firmly think that there are three key principles you must abide by if you want to succeed. These are them:
FIRST RULE: FOCUS, FOCUS, FOCUS
It is best to start with one strategy and be ready to switch to another strategy once these goals are achieved if you want to make a long-term commitment to this business. You should also make it clear upfront that you will need to set aside some money from each of your transactions or deals to re-invest in your education.
For illustration, suppose you ultimately desire to work as a developer (like Trammell Crow, Sam Zell, or Donald Trump), but for the time being, you are employed and $50,000 in debt. Your first step might be to come up with quick cash over the course of the following year to pay off the debt. Once this is accomplished (say, in month six), you might start putting a plan into action to use your real estate investing to earn enough money to quit your job. Finally, once you have established a stable base of income (enough to pay your bills and then some) from your investing activity, you might start a plan to become a developer. In total, three distinct approaches might be needed.
To try all three tactics at once is a “Classic” error made by many inexperienced investors. DO NOT DO THIS! Instead of attempting to learn three tactics at once, it is preferable to learn one strategy for making quick money, master it, and then move on.
“He Who Chases Two Tigers Ultimately Gets None,” says an old African proverb.
Whatever the initial strategy, it has been demonstrated throughout history that those who FOCUS their time, energy, and resources are more likely to succeed than those who do not.
Be persistent, stay focused, and start small to go far.
RECAP: The first rule is to focus, focus, focus.
The second rule is that you learn by doing.
The second crucial fact about real estate investing is that you pick it up via experience. We are aware that there are numerous late-night infomercials that promise that if you attend their seminar and spend $5,000, you will wake up a millionaire the next day. The issue is, however, that nobody has ever come forward to say that their programme actually worked. Additionally, there are people who spend a lot of money attending college or graduate school in order to learn how to “succeed in real estate,” and generally speaking, this can work as long as you commit to working for a real estate company for 25 to 40 years as an employee, making someone else rich. If you’re lucky, you might learn enough (over time) to eventually strike out on your own.
And sure, we’ve all heard of folks who become walking “Encyclopedias” of real estate investing by buying every book, tape, and attending every seminar – BUT NEVER DO ANYTHING WITH IT – BAD IDEA! Why? Because if you never put what you read or hear into practise, you’ll eventually come to the conclusion that “this real estate thing” doesn’t work. Sadly, Forbes Magazine and history will show you otherwise.
Since John Jacob Astor, who bought the land that would eventually become Manhattan in the 1800s and became America’s first millionaire, more people in this country have grown wealthy through real estate investing than through any other method. And more people than any other asset class have poured their wealth back into real estate after making their fortunes in other fields (like running businesses).
BEING AN INVESTOR IS THE BEST WAY TO LEARN HOW TO INVEST.
RECAP: The second rule is that you learn by doing.
Rule number three is to start right now, in your current location.
The last important point is that many novice investors deceive themselves by saying things like, “When I have enough money,” “When I have enough time,” or “When I can get some other things taken care of.” After that, I’ll begin: BALONY! The sooner people stop lying to themselves, the sooner something truly wonderful will occur in their life. What they are really saying is, “I am Scared to Death of Failing at this Real Estate Thing.” The truth is that practically every great real estate investor, including Donald Trump, Sam Zell, Ron LeGrand, Robyn Thompson, and (Insert Name of Millionaire Here), was petrified when they put their first deal together. The fact that they took action and moved forward is what made a difference.
The best way to put it is that an item at rest prefers to stay at rest and an object in motion tends to stay in motion, according to Sir Isaac Newton’s first Law of Motion. To put it another way, if you continue doing what you have been doing, you should anticipate the same outcomes. However, you will need to “go in Motion” if you want a different outcome for your life. The earlier you DO, the sooner you GET because you learn the real estate business by DOING. The time has come to “Go In Motion” and quit making justifications. And as you move forward, resolve to keep learning in order to “Stay In Motion.”
Recap: The third rule is to start right now, wherever you are.
We therefore believe that RealInvestors(TM) will become an important partner in your success by keeping these three criteria in mind, and we want to hear about your success, no matter how small or how great. We primarily aim to assist you in “Going in Motion” and “Staying in Motion.”
So, let’s get going.
To begin going, pick ONE approach. Please remember Rule No. 1: FOCUS, FOCUS, FOCUS. NEVER ATTEMPT TO BECOME AN AUTHORITY ON EVERY STRATEGY PRIOR TO BEGINNING! If you do, we nearly promise that you will never start since you will become overwhelmed with knowledge. Choose one tactic that works for you, educate yourself on it, then implement it.
Make a commitment to focusing solely on that plan for a period of time (let’s say six months). Connect with other investors using that technique, and don’t give up until one of two things has occurred: either six months have passed with no results, or you have completed your first deal using that method and have decided you’d want to try something new. But do not allow yourself to stray from your intended course. In elementary and middle school, it was acceptable to try out for every team sport, but when springtime rolled around, you had to decide between track, baseball/softball, lacrosse, crew, or tennis—you couldn’t play two sports at once.
Every sport has its own regulations and a slightly different mental “game” to play. The same would have happened if you had shown up at a baseball field with shoulder pads and a lacrosse stick. The same is true when it comes to investing, SPECIALLY WHEN YOU ARE JUST GETTING STARTED. One day you will be able to “Play Like Mike,” but for now, let’s keep it simple. Stick with one approach and give it your full attention for at least six months, until you can demonstrate to yourself whether it will work for you or not.
UP NEXT: After familiarising yourself with this website’s Getting Started part, we advise that you do the following:
• Read the Real Investors Forums frequently and post there to learn about the problems that other real estate investors face. You’ll probably encounter those similar problems in the near future.
• All articles about real investors. This will increase your general knowledge of real estate investing.
• Go to the Real Investor Bookstore and choose a course that focuses on the ONE method you have decided to employ as a starting point. Before you ever close your first deal, avoid buying courses on a variety of tactics!
• Join your neighbourhood REIA. Many other investors will you meet; some are more seasoned than others. You will have the chance to network with other industry experts, such as contractors, real estate agents, mortgage brokers, hard money lenders, etc., who might be able to offer you the services you need as a new investor. You might possibly come across an outstanding mentor!
• Make educational investments! Take advantage of every chance to learn more about real estate investing, including The National Real Estate Investors Conference. These gatherings offer priceless chances to network, do business, and learn from more seasoned real estate investors and academics. To occupy the time between live events, look for online course opportunities, such as those provided by Real Investor’s University (REIU).
• Most importantly, get out there and act — get moving!
• Complete your first transaction — we guarantee that it will be the most difficult!
• Recur, Recur, Recur!
• Once you’re prepared, return and add a second strategy to your portfolio, continuing the process.
