Expert tips for beginner property investors.
Real estate investing can be a bit of a scary leap. Maybe you’ve been thinking about it for a while, but you haven’t gotten started. Or, perhaps you want to make real estate investing your full-time job but you’ve never run your own business before. It’s not unusual for people to stall for months, years, maybe even decades before they decide to make the leap! Good news, as long as you are self-motivated, willing to learn, and put in some work, real estate investing is easily within your reach! Here are some tips for beginner property investors to help you get motivated and get started.
Figure Out Why You Want to Invest
Ask yourself why you want to become a property investor. Is it because you’re tired of your day job and you want the flexibility of being self-employed? Is it because you saw Flip or Flop on HGTV and it looks like a great way to make money? Or, maybe you have a lifelong passion for real estate and you’ve always wanted to be involved in the industry. Every person is different. Figure out your own, unique reasons for investing, and discover what really appeals to you. This will help to give you a purpose as you set out on your real estate investing journey.
Think About the Benefits
We’re not going to tell you to totally ignore the downside, because it is a real threat, but if you’re having trouble getting started, try to focus on the benefits. This goes along with the first tip because the benefits will be personal, just like your reason for investing. Maybe your main benefit is having a flexible schedule (if you decide to quit your job and work in investing full time). Or maybe you’re motivated by the great tax write-offs that you’ll obtain by being a rental property owner. Either way, focusing on your own personal benefits as a real estate investor will help shape your future.
Prepare and Do Your Research
Success is only possible for those willing to research and learn! Figure out what it means to be a real estate investor. Research online, read books, listen to podcasts, watch DVDs or YouTube videos—in short, do whatever it takes to learn the basic knowledge and skills you’ll need in your new occupation. Doing your homework will help you find your niche, and it will help you get started and get focused on real estate investing. Plus, it’ll help you immensely to have some idea of what you’re doing before you jump in with both feet.
Find a Mentor
Reading or listening to experts can offer a lot of knowledge, but connecting one-on-one with a knowledgeable person can be even better. If you’re having trouble motivating yourself, or if you want to learn more about the profession, you should find a mentor who can teach you the ropes and give you tailored advice. This person can be an experienced investor or a real estate agent. Not only can he or she teach you, but they can also encourage and support you in your endeavor. Bonus points if this person is local! Each area is unique, so a local mentor will have valuable knowledge that’s tailored to your geographical area. They’ll know specific information about your area that you simply can’t learn from books or websites.
Rejoice in the Small Successes
Most people are highly motivated by success, and disheartened by failure. It’s human nature. For that reason, try to gain small successes. If you’re like many people and you haven’t even gotten your toes wet, then start by simple researching… and count it as a success. Read a book on property investing? There’s a success. Talked to someone who is experienced in real estate investing? There’s another success! Bought a distressed property for a great price and successfully rehabilitated it? Major success! Don’t try to start out by buying an entire apartment complex. Start small and work your way up from there.
Set Specific Property Investment Goals
What, exactly, do you want to accomplish with your real estate business? You should set yourself a small, short-term goal to start out with. You’ll also want to set some longer-term goals. For example, if you’re just getting started, your goal could be to acquire your first property within the next 2 months. Your long-term goal could be to obtain, rehabilitate, and rent out 30 properties within the next 10 years. You can set specific goals with regards to the number of properties you’d like to own, the amount of money you’d like to earn, etc. And don’t just think about your goals—put them down in writing. This is crucial.
Hone Your Focus
Most people don’t realize it, but managing your time efficiently and focusing on your business is actually a learned skill. When you’re a real estate investor, you don’t have a boss monitoring you or giving you instructions on how to spend your time. You have to manage your time and learn to hone your focus, all on your own. Consciously work to reach your goals, each and every day! It might be hard at first if you’re not used to managing your own time, but you will get there.
Take a Leap of Faith
Some people err on the side of being too bold, and they leap into real estate investing without doing all the necessary homework and goal setting. Others are too timid, and they keep putting off purchasing their first investment property because they think they need to read one more book, or listen to one more podcast. If you’re reading this article, you’re probably the latter type of person. The truth is, you’ll never know everything. You have to take that leap of faith at some point. Don’t be paralyzed by a fear of failure. Realize that you will go through struggles and everything won’t always go smoothly—but you have to get started. You’ll learn and grow throughout the process.