Real Estate Investing Basics

Do This BEFORE You Start Investing in Real Estate

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
235 Articles Written
closeup of hands piled on top of one another indicating teamwork

I’ve said this so many times before: your network equals your net worth. Please never forget that!

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Over the last five-plus years, I’ve spoken to many investors from all over the world. They ask me the same thing: “What do you think of this area? What do you think of this market? What do you think of this city?”

They’re all consumed with the online stats and demographics that they can see via a basic Google search. Put simply, I think that’s a bad way to approach investing in real estate.

Focusing on a specific market, city, demographics, population, or employment—according to data on the internet—is not a good idea. I say that because the team that you establish on the ground is going to make or break your investment.

So, the numbers in a specific market or deal are not going to be responsible for any financial loss (in my opinion). There is always going to be someone that you have trusted to do a job that will not do it correctly.

Why You Need to Set Up a Real Estate Team BEFORE You Begin Investing

I have a saying that goes, “If you buy the best house on the best street in the best area that has the best capital growth projections, but your property manager is incompetent or a cheat, you’re going to lose money because they’re going to steal your rent or lose your rent because they are so incompetent.”

Therefore, it really doesn’t matter how good that market is, how much potential that area has for growth, or how good the deal is. If your contractors suck, they’re going to go over budget and you’re going to lose money anyway. This is why it’s very important that you first establish the right team before you start your real estate endeavors.

Related: How to Start Investing in Real Estate at a Young Age (or a “Young at Heart” Age)

Critical Members of Your Real Estate Investing Team

Who do you need?

  • A real estate agent
  • A property manager
  • A contractor or construction crew
  • Maintenance people
  • A good attorney
  • An accountant
  • A title company

I suggest going to your local real estate associations to network with a lot of people. It’s always good to have other successful investors in your contact list who are doing amazing things and who you can always call to ask for advice.

People want to hang around other people that are fun and energetic! Then, they’ll happily offer you their time and advice for free.

Summarizing everything, I think it’s important that you spend time establishing trust and relationships with key people who are going to help you with your real estate investment journey. Do this before you get consumed with the various online stats, demographics, and projections.

Team first, guys! Teamwork really does make the dream work. Don’t forget that.

What do you think? Am I wrong or am I right?

I’d love to hear from you. Comment below.

Engelo Rumora, a.k.a."the Real Estate Dingo," quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties. He runs runs Ohio Cashflow, a turnkey real estate investment company in the country (Inc 5000 2017 & 2018) and is currently in the process of launching a real estate brokerage called List’n Sell Realty. He is also known for giving houses away to people in need and his crazy videos on YouTube. His mission in life is to be remembered as someone that gave it his all and gave it all away.

    The German
    Replied about 11 years ago
    I believe that the best real estate sales happen in the country side. It is a win-win situation and that is a market that can never slow down. In an area like rural Germany or France, the vistas are so beautiful that people can’t resist it. And the price is also pretty realistic. Nice article and all the 4 points make sense. Thanks 🙂
    Crystal Tost
    Replied over 9 years ago
    I find the advertising in other countries and in mediums that are not real estate related a waster of money and time. I think targeted advertising coupled with good pricing and proper presentation will get the house sold to a local buyer that is likely out there as we speak. Why focus on an audience that you are not even sure exists in mediums that are not targeted?
    David Grbich
    Replied almost 9 years ago
    Setting a realistic list price at 10% below market may lead to a very lonely existence as a realtor – not many sellers in the California market have the equity to price 10% below market – but yes that should get the home sold. Great point overall – thanks.
    Bo Wagner attorney from Brookhaven, GA
    Replied 8 months ago
    SO true! I work with a lot of investors and the ones who are the most successful get all of this lined up early in the process. It seems easy but your team can make or break a project…
    Engelo Rumora specialist from Toledo, OH
    Replied 8 months ago
    Thanks for your comment Bo. Much success.
    Marie Fries from Whitman, MA
    Replied 8 months ago
    Thank you for posting this. I still new and mapping out a plan, a team and a way to execute!
    Engelo Rumora specialist from Toledo, OH
    Replied 8 months ago
    Thanks for you comment Marie and no worries at all. I wish you much success
    David Pere rental_property_investor from Oceanside, CA
    Replied 8 months ago
    You’re spot on! My team is what has enabled me to invest from overseas successfully. Your team (and systems) can make or break your real estate investing experience!
    Engelo Rumora specialist from Toledo, OH
    Replied 8 months ago
    Thanks David and well done on your achievements. Keep the dream alive 🙂
    Jerry Maze flipper_rehabber from Portage, MI
    Replied 8 months ago
    Wow! That is so true! Top 5, if not top three, of importance to proceed!
    Jerry Maze flipper_rehabber from Portage, MI
    Replied 8 months ago
    Really good advice and thoughtfully prepared… I am going to read it again and take notes… put it in my rental file VIP docs! Thanks Jerry
    Engelo Rumora specialist from Toledo, OH
    Replied 6 months ago
    Thanks Jerry. I’m super glad that you found my blog useful 🙂 I wish you much success
    Rachel Bakutis
    Replied 7 months ago
    I am just about to start my investment and really enjoyed learning from Engelo Romora. I will read all you published here !
    Engelo Rumora specialist from Toledo, OH
    Replied 6 months ago
    Thanks for your kind words Rachel. I do my best to keep it real. Much success
    Jerry Maze flipper_rehabber from Portage, MI
    Replied 6 months ago
    This makes total sense. I plan on making this a top priority. I believe your are spot on. From what I can tell in my are building trust relationships is crucial. The REI meetings I attend through various associations bear out the truth in your assessment! I’ve met some great people that are more than willing to help you grow and are always looking for credible investors to work with.