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May 21 '09, 05:03 AMI started out posting a response to a "how to get started question"...then after a frenzy of typing I realized that it deserved a post of it's own....
I try to post answers like I would have liked to see when I was starting so it's fairly thorough!
One of the questions I see asked very frequently in the forums is: I'm a Newbie to the investing world where do I start?
Feeling frustrated and mind fricked by where you should start with your investing business? The truth is that anyone who's currently succeeding in real estate has probably been there, done that, and got the T-Shirt...starting up can be a crazy thing.
From my experience a profitable and long lasting real estate business requires only a small degree of planning from the start. Then frequent updates to your plan as you go along.
To get started I would recommend taking 10 minutes and answering these 3 questions. The purpose being to align the structures of your new business and get your ships all sailing in the right direction.
Identifying your constraints- what factors are going to limit you?
Are you so broke that homeless people offer you change?
Are you a "If it weren't for bad credit you wouldn't have any credit at all type of person"?
Do you have lots of time but no money?
Do you have lots of money but no time?
By identifying your business constraints BEFORE you get started, you won't run into the common nightmare of spending the year learning about a "Super Deluxe Exit Strategy", only to find out that you don't have the resources available to put it to work.
Define your ideal outcome- Where do you want to end up in the next 6 months, 1 year, 2 years,....10 years. How much money are you seeking to earn and which income streams do you plan to have that money coming from?
Do you plan on having $1,000/month passive income from rental property?
Do you plan on making an extra $40,000/yr wholesaling a home every couple months?
Do you plan on starting out with some high paying quick turn around exit strategie, then funneling that money into rental properties?
Try to set up a realistic outcome that is both achievable and challenging. Don't fall in love with your outcome, simply use it as a guide post to steer your investing ships in the right direction.
Choose your strategy- Once you've identified your constraints and defined your ideal outcomes, you'll need to find which exit strategy which aligns with your answers.
From that point forward STICK to learning ONLY that strategy. Or as Tim Ferris says in the 4 Hour Work Week "Go On An Information Diet". This prevents the all too frequent getting ready to get ready syndrome that plagues most newbies to the point of an exhaustive failure.
Once you've learned enough to get started...Don't be an idiot....GET STARTED.
One last helpful tactic to further counteract over learning and winding up in the dreaded Analysis Paralysis trap:
1.Once you've identified the exit strategy that you plan to implement take 10 minutes and write out everything you already know about the subject. Doing this exercise will help you quickly identify which areas to focus your learning on.
2.Next, write a brief outline of the necessary steps to complete a successful deal using the exit strategy that you've selected.
3.Now compare your outline to what you already know about your exit strategy then go to work on filling in the gaps.
Once you've learned enough to get started then....THEN GET STARTED.
I hope this helps a few of you out...I've seen it do miracles for people!
Eric Medemar :idea:
