Getting started, invest in your education

If you want to do anything well the education never stops… So where does it start?

Technically it already has. If you’ve made the decision of which investment path you will take (http://www.biggerpockets.com/blogs/6861/blog_posts/45288-the-beginning---what-to-do ) , you have already started your research. Now you need to become an expert in your niche.

Here I would suggest first reading books, blogs and forums. I would not spend a dime on website subscriptions, mentors or any of the 1000 other ways people try to sell you something in this business. Keep your money in your pocket for as long as possible. Have a solid understanding of what you are getting yourself into before spending your hard earned money.

First read Rich Dad, Poor Dad (it will help you better understand how to build and keep wealth) then try to find 2 – 3 of the top rated books on the area of investing you chose to pursue. This will give you a solid base in which you can build on. Read, ask questions and respond to blogs and forum posts. Try to keep in touch with people you connect with on the Forums. See if there is any way you can help them, it’s a great way to build relationships.

You will see a lot of chatter about mentors and gurus. NO GURUs …. I do like the idea of a mentor, I have one. There are, what I like to call, “Professional” mentors where you pay and then there are ones you find that are willing to help you along the way for free.

“Professional” mentors:

Pros :

-Knowledgeable with real world experience

-Step by step program in place

-Provide forms, documents and spreadsheets needed during the deal making process

-Have a blog and/or podcast

-Someone to hold you accountable

-Accelerates the learning curve

-Has access to investors/capital

-Has contacts in the business (great for referrals)

Cons:

-They cost money. Typically $1-3k (and sometimes a monthly retainer) – Recommendation: negotiate the price.

-You need to do your research on who you hire. I’ve notice that while some have read every book on the subject. They might only have a limited amount of real world experience.You want to make sure they have a program in place and that you have unlimited access to them via phone and email.

-Not necessarily local.

Free mentors:

Quality of such mentors will vary depending on their personality and willingness to help. A good way to develop a good relationship is to find out how you can help them. If you are able to have someone take you under their wing it can be an invaluable learning experience.

Pros:

-They’re free

-Could/should have substantial experience

-Are local, with local contacts and connections (this is huge if you are wholesaling or flipping)

-Potential watch (tag along) through the entire deal process

Cons:

-Usually not as available as a mentor your are paying

-No structured program in place

-Difficult to qualify

-Limited learning resources

-Difficult to find when just starting out

Meetings/Meet-ups (REIAs):

Eventually you need to get out there and start meeting people. I would suggest you wait until you have a decent knowledge base. At the least have read the 2-3 books recommended above. It shows that you put some time in learning and are dedicated to what you do.Once you’ve done that your local Real Estate Investment Clubs are a good place to start. REIA’s could be a good place to find a mentor as well as other potential team members and investors. If you search the web you should find one in your area. Your goal at these meetings will vary depending on which area you chose to invest in. Using myself as an example if I am at an REI I’m looking for investors (or people with access to investors, maybe brokers etc.) and people knowledgeable about commercial real estate.I would make sure to have business cards and an elevator pitch (https://www.biggerpockets.com/renewsblog/2014/07/26/elevator-pitch-examples/) explaining what you’re looking to accomplish when you attend.

This should give you a good base to work from. As you become more involved you will understand where you need to concentrate your efforts. At that point I would suggest starting to wisely spend money to further educate yourself. The basic knowledge is readily available and usually free (or very cheap), when you start to become more experienced and need to take your game to the next level is when it could become hard to find good, free, resources.