I receive so many questions about how to get started with:
- no knowledge
- no money
- no time
Having been there, I feel your pain. How do you start in any industry with none of the above? But this is where most people start. Hopefully, you have a really strong desire and reason for getting into investing because it’s going to take:
In fact, it takes lots of all 3. Here’s how to get started:
- Recognize – that you’re starting where most investors start, no matter their age. Most have a w2 job and no knowledge, very few have much money. No one starts out with enough money for this business, by the way – real estate investing is expensive.
- Time – You must have time. Carve out some everyday and make learning something new a daily habit. Before work, after work, lunch hour – whatever works best for you. And real estate is retail so it’s 7 days and nights a week. If you want to be successful, don’t plan to do this in your spare time, plan to do this all the time. Slacking off and retirement comes later.
- Education – The best way to start is to learn – you must have knowledge to succeed in any industry. Network, network, network. Go to all your local real estate investment groups as often as you can. You can find your local meetings on MeetUp.com and NationalREIA.org. Also, seek out landlord association meetings as these people already own investment real estate.
- Locally – All real estate is local. You must learn your local laws and regulations, know your local attorneys or title companies, contractors, subs, investors, lenders, etc. These are the people you meet and learn about at local meetings. And local meetings is where you will find out what investors in your area are up to – what they’re buying, what they need, what they’re paying, how they’re finding leads, how they sell.
- Goals – Set goals and make them happen. Plenty of people want to do this business and have been waiting years for it to happen to them. Don’t be one of those people! Set goals and make it happen. If you want to buy 1, 2, or 3 houses this year, make a plan. Talk to sellers on craigslist. Call for-rent signs to speak with landlords. Call we-buy-houses signs and talk with investors. What are people looking for, needing, expecting? Learn this new language and how to communicate as an investor.
- Money – Real estate investing, especially as you do more and more of it, is a very expensive business. Yes, you can make a lot of money investing which is probably why you want to do it, but it takes money to make it happen. Start learning about money sources – friends, family (careful with this one!), business associates, hard money, banks. Who loans what and how can you qualify?
As I already said, to be a successful real estate investor takes time, money, and effort. Nothing worth doing is fast or easy. Commit to learning every day and, in a year, you’ll be amazed at how much you know.
Good luck and please let me know here what you’re doing to learn and what successes you experience.