1. Start small. There’s no such thing as starting too small if you want to have a future in real estate, because if we want to turn a real estate into a real fortune we should start small. Many people have done it over the past years and you can do it too! Do not use all that you have if you don’t have any experience in real estate investing. You may also opt to have a business partner or another source of income that will give you a direct cash flow and you can use it to make real estate investing as a part-time hobby. If you get your first client, make sure to learn on how to read the contracts and build your group of networks of specialists. It’s not about learning it all at once but the truth is, you’ll learn as you start small. Joel Salatin, a real estate mentor said that “Make your mistakes as small as possible without catastrophic consequences.”
2. Think big. Always chase the deal, not your budget. You might want to give up easily when tough time comes, you ran out of money or anything that will let you down. The deal always matters. As soon as you start, think big and go with 16 minimum units. Stop thinking to buy less. You’ll learn how to sell if you don’t have a manager and dedicate all your attention to this or to your full-time job.
3. Understand the economics, then find a mentor. You need to understand the economics if you have decided to make real estate investing turn into a real estate fortune. Find opportunities and create more opportunities from it. What you need to do is find deals before the competition so you can make some money out of it by flipping houses. Airbnb and HomeAway are just a few of taxed-advantaged passive income that you can have. Residential properties and short-term renting can produce higher returns.
4. Learn, then earn. Educate yourself before you decide to throw money away! Find it from people who are specializing the real estate investment industry. Seminars and coaches are expensive and it is not advisable to throw thousands of dollars for it. Mark Bloom, the President of Networth Realty said that “Educate yourself, hustle, and create value. Take massive, determined action daily. Talk to brokers, call contractors, view open houses, and go to meetups. Learn! And when you’re ready, door knock! The best deal is the one that isn’t for sale. Find it, then find someone like me and close it down.”
5. Start now. The right time to start doing it is now! Here are three steps on how you can get started with real estate investing.
6. Profit is in the purchase. Roy McDonald, founder, and CEO of One Life said that Finally, know the difference between buying, holding, and trading. Buying is a no brainer, but it’s what you do with a property that determines your success. My primary strategy has been holding onto commercial real estate for the long term and trading out residential pretty quickly. Know your market.