Real Estate Investing Basics

5 Simple Steps for Beginner Real Estate Investors

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40 Articles Written

Most beginners get lost in a world of information.  They analyze and try every strategy but never focus or become a master at one real estate investing strategy.  I suggest an alternative plan, which will simplify things and increase the likelihood of your success.  Here are 5 simple steps for investing beginners. 

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  1. Pick one and only one strategy – Avoid confusion, spinning your wheels, and analysis paralysis.  Pick only one strategy and commit to becoming a master; by doing so, your learning curve becomes minimal, your to do list becomes simple, focused and success becomes realistic.  Eliminating all the various other strategies helps you to become productive, knowledgeable and achieve master status.
  2. Focus on areas to invest – Similar to above, become a master in a few areas.  By slimming down your farm, your to do list becomes simple, you become productive, a master of your focused areas and success is yours for the taking.
  3. Document your plan to find, finance, do and exit deals – In this step you will further dial into your strategy.  By doing so, you will be able to delegate, automate, and build a team and your systems.
  4. Implement – Don’t stop now, you are close to realizing your goals and achieving success.  Implement your to do list every day.  This is where you bridge the gap between learning and doing.  Many stop at learning and understanding the concepts and theories.  Doers apply and implement what they learn.  Become a Doer!
  5. Critique and Improve – Look at your strategy, and the areas you focus on, including your plan, your team, and your systems like you were an outsider.  Even have mentors, fellow investors and other experts in your strategy look at what you are doing.  What can be improved?  What will improve your effectiveness, efficiency and help you realize your goals?  Most importantly, what will most improve your profits?  Go back to step 1, critique and improve on each step then start the process over periodically to achieve continuous improvement. 

Do you find this helpful?  What has and has not worked for you as a beginner?  Please share your story and share helpful advice so we can all make 2010 and beyond, a success!

    Bilgefisher
    Replied about 9 years ago
    Ryan, Your approach is simple but very good. KISS. Layout a simple attainable plan of action and get to it. Good post. Jason
    Ryan Moeller
    Replied about 9 years ago
    Thanks Jason, I didn’t keep it simple at first but with a little focus all beginners can drastically shorten their learning curve and achieve success faster. Thanks again for the comment!
    John
    Replied almost 7 years ago
    Ok, Ryan lots of info out there here is my first step I signed up to go to the Fortune builders 3 day seminar just to get my feet wet. You guys all sound like you have possibly been in my shoes good start or waste of my time and money?
    Dean Saliba
    Replied about 9 years ago
    This might be a bit off topic but I’d like to see a post on here helping new house buyers. You know, maybe tips on what to ask, what to look for and what to watch out for. 🙂
    Ryan Moeller
    Replied about 9 years ago
    Hey Dean, Investing and buying a home to live in are two completely different things. Investment property has to meet criteria to mitigate risk and provide return. It’s all about the numbers. The home you live in must meet your own personal criteria. It’s more of an emotional decision. Have you spoke to any local agents?
    Ryan Moeller
    Replied about 9 years ago
    Hey Dean, Investing and buying a home to live in are two completely different things. Investment property has to meet criteria to mitigate risk and provide return. It’s all about the numbers. The home you live in must meet your own personal criteria. It’s more of an emotional decision. Have you spoke to any local agents?
    Eric Watts
    Replied about 9 years ago
    #1 is key! Many times, too many new investors try their hands at everything, when they should really stick to on basic real estate investment strategy. By focusing on one course of action a new investor will be able to entrench themselves in the investment process greatly inhancing the change for return. Make sure, as a new investor, to do your research, plan and them impliment!
    Ryan Moeller
    Replied about 9 years ago
    I totally agree Eric, great comment. It took me awhile to focus when I began so I know from experience and see 95% of beginners spinning their wheels like I did. Best of luck!
    Khary Reynolds
    Replied about 9 years ago
    You are so right Ryan. It is so easy to get analysis paralysis when starting anything new. The easiest way for any beginning investor to get started is to focus on one strategy and one part of town. After driving for dollars and analyzing deals for a few weeks its amazing how much you can learn about an area.
    Ryan Moeller
    Replied about 9 years ago
    Khary, you are absolutely right. Once beginners choose to master one strategy and area everything becomes much more simple. Thanks for the comment and hope you make 2010 a great one!
    jay kempner
    Replied about 9 years ago
    What are the better websites for gathering comprehensive info on buying homes at auction; both “how-to” and sites with auction listings, dates, etc? I want to research this particular area of investing and am starting at square one.
    Karlos Knox
    Replied about 9 years ago
    Though I agree totally with statements 2-5 above; I disagree with the idea of master one technique as a beginning investor. When leads arrive from our hard spent marketing dollars, a beginner needs to evaluate every method possible to make money the deal. Sure there is a higher learning curve but you can also try and learn different strategies and then select one to master. Just choosing one or two strategies out of the blue and trying to master it is why most new investors fail because one strategy does not apply to every lead where as using a multiple strategy approach though causing more front end work allows the new investors to capitalize on more deals early on if they put forth the effort.
    Ryan Moeller
    Replied about 9 years ago
    Finally Karlos, someone who has the balls to disagree with something I write. I appreciate your honesty. It’s never a bad thing to have more ways to profit. But most beginners will have no idea how to make it happen. They will spin their wheels in total confused, blow the deal and end up even more discouraged. By focusing on one strategy, beginners simplify things, avoid the confusion and frustration and minimize the learning curve. If a lead comes in for another strategy, they can always try to profit from it if they are up for the challenge. Or they can always hand the deal off to an expert in that strategy and make a fee and/or learn from the expert. I am as guilty as probably anybody as I spun my wheels for years trying every strategy and I blew all kinds of deals. It was when I focused on one strategy and targeted 2 markets that the floodgates opened and success became a reality. My adivce, master one strategy and be that top 5% of beginners that picks up real estate fast.
    Ryan Moeller
    Replied about 9 years ago
    Finally Karlos, someone who has the balls to disagree with something I write. I appreciate your honesty. It’s never a bad thing to have more ways to profit. But most beginners will have no idea how to make it happen. They will spin their wheels in total confused, blow the deal and end up even more discouraged. By focusing on one strategy, beginners simplify things, avoid the confusion and frustration and minimize the learning curve. If a lead comes in for another strategy, they can always try to profit from it if they are up for the challenge. Or they can always hand the deal off to an expert in that strategy and make a fee and/or learn from the expert. I am as guilty as probably anybody as I spun my wheels for years trying every strategy and I blew all kinds of deals. It was when I focused on one strategy and targeted 2 markets that the floodgates opened and success became a reality. My adivce, master one strategy and be that top 5% of beginners that picks up real estate fast. Reply Report comment
    Big Pat
    Replied about 9 years ago
    Actually both of you are correct. It’s best to start off and become familiar with one strategy. Most beginning investors have a hard time building confidence and overcoming fear. By developing a plan centered around one strategy, a beginner is more likely to build the confidence and take action; However, as time goes by and the beginner gains experience, seeking out alternative strategies will definitely lead to more deals. My first strategy was to invest and hold rental properties. I missed out on a bank owned deal (REO) because I couldn’t get the numbers to meet my rental analysis. Well, after I decided to pass up on the deal, I later found out that somebody bought it, rehabbed it, and sold it for almost a $40,000 profit. My “one way vision” blinded me and caused me to miss out on a huge profit.
    Ryan Moeller
    Replied about 9 years ago
    Pat, fantastic comment. I think we all have lost out on deals at the beginning. Everything you said is completely accurate. Thanks for the sharing.
    Deborah Wiggins Real Estate Agent from Union, New Jersey
    Replied almost 3 years ago
    Help, I am completely overwhelmed as to where to start. I have been trying to figure out how to combine a hard money lender with a private lender to create a deal. I am starting at a disadvantage because I have no personal cash, but constantly see articles that you can do this without using your own money. Where do I began. I am a realtor so I know where the properties are, and I have identified a hard money lender for the 80%. Where do I find the 20%?