Real Estate Investing – Beginners
Have you ever played Monopoly? My 6-year-old son and I played it a lot during lockdown – such a great game for teaching children about money and investing.
Notice how the one who has the most properties wins? Well, real estate investing is based on the same principle.
Of course, Monopoly doesn’t cover all aspects of real estate investing, like wholesaling real estate or flipping houses but it’s a good start.
If you’re a complete beginner to real estate investing or thinking of taking it on as a career, you’ll enjoy these 12 tips.
1. Build Belief, Knowledge and Skills
Start by building belief in the industry. Read articles that build your belief in real estate investing like this one I found on astroflipping.com: Ron Legrand Net Worth
If you haven’t read Robert Kiyosaki’s Rich Dad, Poor Dad yet, it’s a must.
Then build your knowledge base. The study, take courses and learn the latest techniques from the greats in the industry.
Then jump into the game so that you can start honing your skills.
Start by learning to wholesale a property before you start flipping properties (buying, renovating, then selling). When you’re wholesaling, you’re brokering a deal and drawing up a contract between a buyer and seller, without putting a penny down yourself.
Join your local Real Estate Investors Association (REIA) and attend their events (all online at the moment) so you can meet and make friends with other people in the business.
You can bounce ideas off each other, stay on top of what’s working today and learn which costly mistakes to avoid.
3. Find a Mentor or JV Partner
Find a mentor or better still, a Joint Venture partner who is experienced in the business and can show you the way to be successful. This will save you time and money.
4. Know Your Job Description
You’re going to spend most of time on marketing, prospecting and lead generation.
If you’re not out actively marketing yourself, you have no business.
Learn the art of Direct Response Marketing and how to use it as a Real Estate Investor.
5. Take Action
The sooner your get out there, the sooner you’ll really start learning the game.
You learn more by doing deals than by watching how it’s done.
Pick up the phone and start calling sellers and real estate agents.
6. Be Fearless
This business takes courage. Fortune favours the bold.
Let go of the fear of failure. Learn from your mistakes. Sometimes you’ll lose money. Treat every costly mistake as a learning curve and move on swiftly to the next deal.
Let go of the fear of rejection. Don’t be afraid to talk to anyone. Develop a thick skin and get comfortable with being uncomfortable.
7. Seek Out Opportunities
Opportunities are everywhere. Believe you’ll get your fair share of deals.
Become a master at finding opportunites but don’t force a deal where there’s no deal to be made. For example, bad neighbours will make a house very hard to sell.
8. Go All In
Don’t treat property investing as a side hustle. Go full time and give it your best shot.
Work all areas, low-income areas and high-income areas.
9. Develop a Formula
Get comfy with making low offers. “If you aren’t a little embarrassed by your offer then your offer is too high.”
Work out a formula to calculate the most you’re willing to pay for a property that meets your criteria and will generate a worthwhile profit margin.
10. Timing is Everything
Understand this is a cyclical business. Ride the wave. Then save up for the next wave.
Know when to adjust your business model when the market swings. Consider building a rental property portfolio and graduating to commercial property.
12. Stay in the Game
Take consistent action. Set a goal to write one offer a day and do that consistently for years. The longer you’re in the game, the more contacts you have and the more credibility and respect you earn in the industry.
Have you considered Real Estate Investing as a career?
This post was sponsored by AstroFlipping.com. Sponsored posts are one of the ways I earn income blogging. All opinions are my own.