The #1 question that we get asked is “How do I get started in investing in real estate?” You’ve likely heard us (and so many others) say it before and here it is again – just do it! It’s not just a Nike slogan, it’s an excellent motto to live by, particularly, as it relates to your first real estate or other investing deal. For beginners, we recommend starting simple. Super simple. Starting with a small single family home as a rental or a small 1st position loan as a private lender is the easiest beginner advice. These strategies provide the most amount of flexibility when you’re trying to get started. And while there is still a lot to learn on the 1st deal, you don’t know what you don’t know yet, so OTJT is going to happen. This is also where we began so you are not alone!
Real Estate investing comes in many shapes and forms.
Here is our 3 Step Guide to Getting Started in Real Estate Investing:
Answering these questions will help you narrow your choice to determine the exact strategy to define your search. For instance, if you know you don’t have much time to spend each month on your investment, that you have less than $50,000 to invest, and you’d like a safer investment that provides cashflow, then you may want to invest in rental real estate or private lending. If you’re willing to invest more time and capital into your investment, and have done some deals already, then you may be interested in expanding to apartment complexes or commercial property.
Be sure to dig deep into your vehicle of choice. For rental real estate, do you want to invest in single family homes? Residential rentals (2 – 4 units, such as duplexes or triplexes)? Commercial rentals (5+ units)? Mobile home parks? For private lending, do you want to invest in 1st position or 2nd? Where are you comfortable investing? What size projects do you want to be involved with?
Still need some guidance on how to pick your vehicle? Here’s a great article on 101 Things Everyone Needs to Know. Or post a comment on this article and start a dialog with us! If you have a question, we can promise you that someone else out there has the same question.
Come up with a date by which you plan to execute that strategy! Set a date that’s realistic, but also be firm with yourself. Less than 10% of people that think and learn about real estate actually do a real estate deal! One of the main ways to be on the right side of statistics is to set a deadline for yourself and hold yourself accountable for taking action by that date! See the fear and push through it!
Then.. just do it! Start with an amount of money that you’re comfortable losing 100% of. We sincerely hope that you don’t lose it all, but the actual experience of investing will teach you more than anything you can learn by reading or leveraging other people’s experiences. Be active. Be informed. And just do it.
Legal disclaimer: We are not CPAs, agents, attorneys, or any other type of certified professional, so we encourage each and every one of you to do your due diligence before investing in any of the strategies we discuss in our blog. Our blog should not be considered legal or certified professional advice. Please consult your own trusted professionals.