The main challenge most novice investors have starting out in real estate investing is how to take the first steps
I faced the same dilemma 15 years ago at the start of my real estate investing career
Some of the questions that I asked :
what do I do first look for a property or attend real estate seminar?
Do I invest in single family or multi-family properties?
How do I avoid buying the wrong property?
How would I finance my properties?
Do I invest in real estate for cash flow or appreciation?
Unfortunately, I could not get my entire question answered before I took the plunge into the world of real estate.
In hindsight, I was glad I didn’t wait for those answers. However with many costly lessons I have managed to get my part-time real estate investing career up and running
Looking back over my past experience…and interviewing other successful RE investors I believe there are 7 steps to starting out in Real Estate investing.
These steps are useful whether you invest in real estate part time or you decide to go full time
Invest in your real estate education
You must take time to invest in your real estate education. I think it’s worth repeating many times over.
Why do you need to invest in real estate education? The answer is simple. You’ll save tons of money and time without making mistakes.
There are many ways you can educate yourself in real estate. You can buy or lend books on real estate investing…attend seminars…join a local real estate investing club…read your local newspaper classified ads and ask your local realtors about your local real estate market
Don’t joke with this step because applied real estate knowledge is power
When I started out investing, I was clueless about many aspects of real estate investing.
However, I quickly learned that ignorance was hell after buying a property that almost ruined my finances. I was able to turn around my situation after attending a seminar that cost just $450! The money I have invested in my real estate education has returned more in cash than I paid for them.
A simple way to start investing in your education is to start reading books on real estate, then sign up for reputable online real estate forums if you have a day job.
Some of the websites I have found useful
Richest man in Babylon by
Rich Dad Poor Dad by Robert T Kiyosaki
ABC of real estate investing
Real Estate Riches by Dolf de Roos
My list is by no means exhaustive. You can look around at Amazon or surf the web for more information
I want to leave you with a comment my mentor Mark Morgan Ford once told me.
Mark Ford publisher of the Palm Beach Newsletter, who is a successful businessman, author and wealth expert concluded that the lack of capital is not the only problem an entrepreneur should worry about. Because it’s far easier to raise money than you think to start a business. It is the acquisition of the insider knowledge of that business that the entrepreneur focuses on getting. Knowledge is the antidote to failure in business