So you want to be an investor eh?
As with any other business, real estate is no different. I can go into all the details such as creating an LLC, business plan, marketing plan, exit strategy, investors and on and on. If you’re anything like me you would look at this long list and say nah show me the money, what do I need to do to get paid?
In this post I will outline the four “big picture” components of how to get started in real estate investing.
1) Knowledge
Although this is not a complicated business, it is a business where you have to do things in a very specific order. Sort of like cooking, once you know the recipe and have used it a couple times you can expect to get the same outcome. The same is true when it comes to real estate, once you learn how to find a deal , get it under contract, market it and sell it you’ll be able to do it again and again expecting a similar outcome.
In this step is where most people fail, they simply stay in planning mode and don’t take action. One thing I learned is that most people don’t take action because of fear, this fear paralyses your ability to take action and most of the time it’s because people are overwhelmed with information and get confused( a confused mind does nothing). There are a lot good sources out there but you can’t help it if you don’t know what you don’t know, you have to learn how to put things in the right order so it can make sense, then you’ll have your “recipe”.
2) Team
Real Estate is a team sport, you’ll need a team of people.
- Attorney’s
- Hard Money / Private Money Lenders/ Mortgage Lenders
- Real Estate Agents
- Title Company
- Appraiser’s
- Inspectors
- General Contractor
- Handyman
- Management Company
- Wholesaler’s
- Referral Partners
- Accountant
This is not an exclusive list and they’re not in any order of importance, they all play a part in any give transaction. Find these people because you won’t be in business without them.
3) Money
You are in a business where you will need money!
I know there are a lot of advertisers saying you can flip houses without any money which is true, there are several strategies that you can implement such as wholesaling, lease options,subject to and others. Wholesaling is the most popular. It’s a strategy where you never purchase the house yourself, you get the property under contract find and investor that has the money and sell them the contract. You don’t need a money to purchase the house you will need money for marketing and you will need a lot of time to make sure the property you have under contract will be worth it for somebody else to pay you a wholesale fee(due diligence). To learn more about wholesaling read my post on what is wholesaling real estate.
If you’re going to flip or hold properties you will need financing.
Five ways to finance your investment property:
- Your own cash
- Get a mortgage
- Hard money
- Private money
- Equity partner
Each of these finance options have their ups and downs depending on your strategy, learn what each one is and what strategies they work best with.
4) Action
This is where “the rubber meets the road”, you can read all the books watch all the videos in the world and still not take action. This is a phenomenon that I don’t quite understand, It’s something that I struggled with. I needed for everything to be perfect before I took my first step, it turns out I’m not alone in this. My advice to you is just go for it, the universe will respond to you but only through your actions. Get out of your head and start doing something, anything, it doesn’t matter what it is, just go out there and implement something you’ve learned.
“If you spend too much time thinking about a thing, you’ll never get it done.” ~ Bruce Lee
Take action right now! If I could show you how to put all these pieces of the puzzle together will that be worth your time take a look at this video to learn more.
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