What advice would you give a new investor?
one. Find a coach/mentor in your area Who can you turn to for guidance? Most importantly, with whomever you turn to, make sure they are successfully doing what you want to do and talk to others you have helped before committing your time and/or money.
Real estate investing is not a solo business. You need attorneys, CPAs (real estate investment experts), contractors, subcontractors, real estate agents, title companies, closing attorneys, inspectors, appraisers, etc. Find someone who has walked the minefield before you and can help you save time and money.
Should you pay them for their time? Absolutely. If they are willing to share with you what they have learned over years of their own time and effort, they have paid for their skills one way or another and what you will get from them is worth paying for. If they are not worth paying for, they are not worth following.
And don’t just approach your companions; Reach out to those who are in a better position than you. Jim Rohn said, “You’re the average of the top 5 people you hang out with.” If you want to improve in any area, find someone to follow who is doing much better than you.
2. Get involved with a peer group that knows more than you do. Go to all the meetings you can. For real estate investors, that usually means local REIA meetings (real estate investor association meetings you can find at NationalREIA.com). Also check MeetUp.com and any local homeowners association meetings. The owners are already doing business and can be a great source of information as well as potential buyers and sellers to work with.
3. Set goals. Make a plan. How many houses do you want to buy in the next 12 months? How much do you want to be worth in 5 years? As you write down your goals, include strategies to achieve them. Do you want to buy 10 houses in the next 12 months? Break that down into chunks to figure out what you need to do each month to make those goals a reality.
Four. Buy real estate. If you haven’t started yet, get started! If you’re buying, buy more. If he doesn’t, 10 years will have passed and he’ll be kicking himself for not buying as much as he could today. The way to truly learn is by doing. Books and seminars are great, but he won’t know what he knows and what he doesn’t know until he jumps in and starts shopping for himself.
It’s a tired cliché that “there has never been a better time to buy real estate”, but it is true. I think that is always true. Sure, you have to adjust your methods and strategies based on the economy and where you invest, but everyone works, shops, and lives somewhere. If you don’t own it, someone else will.
Get an education, connect with a mentor, make a plan, and buy real estate.
What can you add?