100: How to get Started Investing Real Estate Fast
On this episode of the InvestFourMore Real Estate Podcast (number 100!), I cover how to invest in real estate, and how to do it quickly. There is no magic formula or overnight success kit, but there are many things you can do quicken the process. Many of people are overwhelmed the number of investment options out there, how much money they need, how much knowledge is required, and as a result, they give up. One of the tricks to becoming successful in anything is just to start. Start taking action even if it means completing simple tasks that may not seem important. Focus is also extremely important. Trying to start 10 different things at once never works well. On this show, I talk about the best way to determine what type of investing to start with, how to focus, how to take action, and how to make everything happen faster.
Since this is my 100th episode, I am offering a bonus. The first ten people who rate and leave a review for the podcast on iTunes will get my new Jump Start Investing program for free.
Just take a screen shot of your review and rating and email it to me: [email protected].
Why do you need to focus on one type of investing?
One of the biggest mistakes I see investors make is trying to do too many things at once. They want to be an agent, a flipper, and a landlord, and they want to wholesale deals on the side all at once. It is hard to be successful at one type of investing, let alone five. When you first start out, there is a steep learning curve, and the more things you are trying to do at once, the more mistakes you will make. It is extremely important to figure out what you want to focus on. It’s also important that you do not get distracted until you have built a system to succeed with the type of investing you choose. Don’t give up until you feel you’ve given it your all and decided it will not work, at which time you should reassess and find what works for you. It takes time and patience to become a successful real estate investor; you cannot expect everything to fall into place in a month or two.
There are many ways to invest in real estate, and what you choose will depend on how active you want to be in your investments and how much money you have.
What if you do not have very much time to invest in real estate?
If you are short on time, it will be tough to flip houses or wholesale deals. It may even be tough to buy rental properties the right way. I love to buy my rentals well below market value…and with plenty of cash flow. Those deals are not always easy to find, especially in higher-priced markets. The more time you have to devote to the business, the more successful you will be. When you first get started, you will have to devote a significant amount of time learning what you want to do, learning your market, learning what deals make sense, and going out and doing it!
If you have more time to devote to real estate, wholesaling or flipping houses may be a good fit. Television shows make it appear as though you can flip houses with a couple of extra hours a week, but that is rarely the case. It takes time to find contractors, find deals, manage contractors, find lenders, and sell properties. Wholesaling takes time as well because you need to find motivated sellers and buyers. It is not an easy business to succeed in. That is one reason I created my Jump Start Coaching series to show people exactly what they need to do so they are not wasting time. In the Jump Start Coaching series, I tell you how to figure out what business you want to be in and how to get started in it as quickly as possible.
What if you do not have the money to invest in real estate?
Many people want to make a better life for themselves with real estate but have no money. The first thing I ask people who tell me they have no money is: Why don’t you have any money? This is a simple question, but many people do not ask themselves why they don’t have money. They know they don’t have money and they wish they had more money, but they are not doing anything to change their situation. Did you make a budget? Do you make as much money as you should at your job? Is there potential to start a business? How much do you spend on car payments? How much do you spend on your house? Success does not fall in your lap—it takes sacrifice and hard work.
If you want to invest in real estate, you will need some money. Real estate investing will not magically solve your money problems. In fact, it could make them worse if you have bad money habits. Figure out some way to save money and you will succeed much faster.
How do you take your real estate investing to the next level?
Many investors run into the problem of buying one or two investment properties then becoming stuck. It can takes years to save up enough money to buy a rental or a flip. Once you buy that property, you do not want to wait 5 or 10 more years to buy another! When you start buying houses and show that you know what you are doing, investing becomes much easier. You have to get great deals on properties, and once you do that, other investors will become interested. Private money is an awesome tool to help expand your real estate business. The better deals you get, the more experience you have and the easier it will be to find more money to do deals. You have to modify how your business works so that you are expanding into different ways to find deals and financing.