A lot of people want to be real estate investors but never actually buy a house. Many others take years before they invest in real estate. It can be tough figuring out if you are ready to buy an investment property. There is a lot to consider: education, money, markets, and more. One thing to remember is there is no perfect time to start investing. Investing itself is the best way to learn how to do things better and learn what type of investing suits you best.
How much education do you need before you invest in real estate?
You need to learn how to invest in real estate, but at some point, you have to buy a property. Knowing when you have enough education to safely buy is tough. At the same time, the best way to learn is to do. I hope my blog, YouTube channel, and books have helped people learn enough to feel comfortable investing. That is the first step in education: learning the basics of how you want to invest and what you want to invest in.
It takes work to learn something new. We do not learn how to read or do math in a few weeks. You might have to read a few books or watch a lot of videos before you start to get a picture of what you want to do.
Reading and watching videos is not the only way to learn about real estate
Besides reading and watching videos, you should be educating yourself in other ways. You should be viewing houses, meeting real estate agents, talking to lenders, and learning about your market. You do not have to wait until you have read books to get out and meet people. One of the most important things you can learn is your market. You can look online to see prices of houses for sale, but you also need to view these houses.
How can you learn about your real estate market?
Books, blogs, and videos are great, but they can’t teach you exactly what to do in your market. Even if a book was written in your town, the market could have changed since it was published. There were great rental-property opportunities in my market a few years ago that are nonexistent now. Our market has tripled in value, which has completely changed how you invest here. I used to buy residential rentals, but now I focus on flipping and commercial rental properties.
Not only do you need to learn your investing strategy, but you also need to learn if it will work in your market. You have to meet people in your market. You do not have to do exactly what other people are doing in your market, but the more you can learn, the better. I had many people tell me investing in real estate was a dumb idea, even other people in the real estate industry. Locals can teach you about housing prices trends, rents, and many other factors, but you can still create your own strategy with that data.
How much money do you need to invest in real estate?
The tricky part is actually pulling the trigger. For one thing, a lot of people may not have the money to invest. That could be an ongoing struggle. It is not an easy problem to solve, but with some hard work and perseverance, one that can be conquered. I wrote a great article on how to invest with less money down here.
I also wrote some articles that go over how much money you need to invest:
When is the right time to invest in real estate?
You know you have read enough or learned enough when you can write out your plan for exactly the type of house you will buy, at what price, what it will rent for (or sell for), how much work you are willing to do, who will do the work, and how long all of this will take. To figure all of this out, you need a mix of real estate investing knowledge and local market knowledge.
The absolute best tool is actually buying a house. Sometimes you have to jump into the game and see how it goes. I do not suggest doing this without learning about investing first, but many people sit on the sidelines their entire lives without even trying. If you learn the basics of investing, you may even make money on your first deal! If you are interested in some of my books on investing, you can check them out here: Mark Ferguson Amazon Page.