{"id":81451,"date":"2020-09-13T05:00:50","date_gmt":"2020-09-13T11:00:50","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=81451"},"modified":"2021-03-16T12:11:42","modified_gmt":"2021-03-16T18:11:42","slug":"take-action-today","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/take-action-today","title":{"rendered":"Newbies: Make TODAY the Day You Start Taking Action\u2014Here&#8217;s Your Motivation"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">Are you dipping your toe into the pool of real estate investment? Well, stop wasting your time and dive right in. Sure, when you\u2019re starting out in this market, it can be scary and confusing. But hovering on the sidelines isn\u2019t doing you any favors. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">You\u2019re not going to lose money, true\u2014but you won\u2019t be making any either. Take the plunge, take that risk, make it happen, follow your dreams. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">There are two main ways to enter the real estate game: through a real estate investment trust (REIT) or through direct ownership. A REIT is more like a stock than anything else; you\u2019re basically buying a share in a property portfolio. With good research and sensible investment, this can make you a lot of money. But it\u2019s not very hands-on, the stock market can be volatile and unpredictable, and you can\u2019t borrow as much against your shares as you can against a property should you apply for a mortgage in the future.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"> If you want to get truly involved in real estate, then the best way is to purchase a property yourself.<\/span><\/p>\n<h2 class=\"p1\">3 Strategies to Make Money Through Investment Property<\/h2>\n<p class=\"p1\"><span class=\"s1\">When considering how you want to make money through property, there are three main strategies: <\/span><\/p>\n<ul>\n<li class=\"li1\"><span class=\"s1\"><em><strong>Long-Term Capital Growth:<\/strong><\/em> Basically, property prices are continually trending upwards over time. Buy a property now and hold onto it for a long time before selling it for significantly more years down the line. You can do this with your own family home and make use of the property whilst literally sitting on a pile of gold. The longer you keep the property, the smaller your mortgage will get, and the larger the cash payout will be when you finally sell.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\"><em><strong>Positive Cash Flow:<\/strong><\/em> This is what comes from renting, whether commercial, or domestic dwellings. These properties should be spitting cash flow at you through monthly rent payments, making them a safe and valuable investment and often a great way to start out in the real estate game. Your initial cash flow may not be vast, but if you get a few properties under your belt, you\u2019ll quickly see a steady return.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\"><em><strong>Adding Value:<\/strong><\/em> Rundown, dilapidated properties can generate huge returns if you can just see the potential. Ignore the leaky roof, the moldy walls, and the door hanging off its hinges and try to imagine the place completely renovated. If you\u2019re creative or have a flair for design, this could be the ideal strategy for you. Yes, you need cash to invest in structural and\/or cosmetic work, but the initial cost will pay dividends when you\u2019re ready to sell.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-81275\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/10\/upgrade-vacation-rental.jpg\" alt=\"upgrade-vacation-rental\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"\/renewsblog\/8-basics-real-estate-investor-master\/\" target=\"_blank\">8 Basics Every New Real Estate Investor Should Master<\/a><\/em><\/p>\n<p class=\"p1\"><span class=\"s1\">Whatever aspect of real estate you\u2019re interested in, if you want to make a success of your first direct ownership investment and begin earning money for both you and your family, here are a few handy tips.<\/span><\/p>\n<h2 class=\"p1\"><span class=\"s3\">If You\u2019re in, You\u2019re in<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Commit. Do it. Take the plunge. If you don\u2019t, someone else will. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">When you\u2019ve worked out which strategy works for you and then found a good deal, don\u2019t hesitate or worry too much over the details. Once you\u2019ve seen a property you like, follow through and buy it. The property market is strong at the moment, so even if your plans don\u2019t unfold exactly as you wanted them to, you\u2019re unlikely to lose any money. The property itself won\u2019t drastically drop in value, so if it\u2019s not performing the way you had hoped, sell it, learn from your mistakes, and move on. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">It\u2019s important to demonstrate your dedication and commitment to a new project, and there are many ways to do this. Attend every meeting with your real estate buddies, prospective renters, buyers, etc. Responding promptly to emails is vital when creating a dependable, reliable image for you and your emerging real estate brand, especially if you\u2019re going to be a landlord. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And if you\u2019re not sure about something, ask for advice from those already successful in the real estate game. There are countless blogs on the internet for real estate investors, but if you have a specific question, go ahead and ask it. Don&#8217;t want to do it in real life? As over the internet on the <a href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Forums<\/a>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">If you\u2019re going to be renting out your property to tenants, make sure you know what being a good landlord entails. Once you\u2019ve bought the property, the work doesn\u2019t end. In fact, it\u2019s just beginning. Make sure you\u2019re aware of what is expected from a landlord. It\u2019s not just about finding tenants, but also maintaining your property and ensuring your tenants hold up their end of the bargain. In order to make a success of this business, jump in with both feet in every aspect\u2014from the purchase of the property to the management side of being a landlord. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Everything needs a 100% commitment from you.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-84055\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/12\/setting-goals.jpg\" alt=\"setting-goals\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/12\/setting-goals.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/12\/setting-goals-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h2 class=\"p1\"><span class=\"s3\">Don\u2019t Get Caught Up in Analysis Paralysis<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Yes, numbers are important. Yes, research is vital. But if a prospective property looks great but there are just a few glitches, look past them and see the potential. You might have come up with a concept for investment in your home office over the past few months, but nothing, in reality, is going to perfectly match your strategic outline.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"> Don\u2019t expect it to. Work with what\u2019s available and stop stalling. Yes, you need to consider how to achieve the best possible return on investment (ROI), but as long as you\u2019re not going to lose money on your first purchase, then you should go for it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Imagine you were intending to follow a positive cash flow strategy, but you\u2019ve found a property in the perfect location and for a great price needing some work\u00a0before it can be rented out. This means mixing added value into your plans. True, getting contractors in will delay the day when you first see a return on your purchase from renters and will initially cost you some cash, but think of the potential. You\u2019re probably getting a great deal on the property because of its condition. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Envision the high rent rates you can charge with a new, high spec finish. You may not have anticipated building work in your initial budget, but that doesn\u2019t mean it\u2019s necessarily bad. Work with what\u2019s out there in the market at the moment rather than waiting for that imaginary, perfect property.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And remember: the property market is flexible. If the figures aren\u2019t quite adding up for you, make the seller an offer. The price a property is advertised at is rarely the price it sells at. Negotiate to get the best deal for both of you, and don\u2019t walk away just because the initial figure seems unattainable. Keep an eye out for cheap properties, but don\u2019t rule out those that are more expensive.\u00a0<\/span><\/p>\n<p class=\"p1\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-90487\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/07\/systems-not-goals.jpg\" alt=\"systems-not-goals\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/07\/systems-not-goals.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/07\/systems-not-goals-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"\/renewsblog\/60-day-newbie-action-plan\" target=\"_blank\">The Ultimate 60-Day Action Plan for the Paralyzed Newbie Longing for a First Deal<\/a><\/em><\/p>\n<h2 class=\"p1\"><span class=\"s3\">KISS<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">&#8220;Keep it simple, stupid.&#8221; You\u2019re not stupid, of course. But beginners in the real estate business can make stupid decisions, chief amongst them being passing up on a great deal. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So what if the numbers are a little different to the idealistic plan you\u2019d come up with? So what if the property is smaller than you initially wanted? You have to start somewhere, right? <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Every experience, good or bad, will teach you something. The more experienced, the savvier you will become, and the stronger your personal property portfolio will grow.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">You don\u2019t need experience to start out in the property game, however. Thanks to the currently strong housing market, real estate investment is a safe bet. Even buying a family home, living it in for a few years, and then selling it on without doing anything will make you a tidy profit and allow you to purchase a bigger house. It couldn\u2019t be more simple. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And you should keep it simple. For your first purchase, don\u2019t be too ambitious. A small property, in an area you are familiar with, is a sensible place to start. You may dream of owning a high-rise apartment building with dozens of tenants, but don\u2019t get ahead of yourself. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Work up to that, taking sensible, realistic steps towards your dream, and you\u2019ll get there in the end. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">We know it might be daunting to put your foot on the first rung onto the property ladder. You needn\u2019t worry. With the market as strong as it is today, you can rest assured that your money is safe. And if there is a dip in the future, all you have to do is keep hold of the property and wait for the value to rise again. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Because if there\u2019s one thing you can always count on, it\u2019s that the trajectory of the housing market is always, inevitably moving upward. So what are you waiting for? Get investing now and begin your new journey into the world of real estate investment today. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I wish you much success.<\/span><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/webinars?utm_source=blog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91217\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p class=\"p1\"><em>What are you going to do TODAY to take action towards your real estate goals?<\/em><\/p>\n<p class=\"p1\"><strong>Let me know with a comment!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Make today the day you remember for years to come. Here&#8217;s why you should take that first step towards realizing your real estate dreams, starting NOW.<\/p>\n","protected":false},"author":1672,"featured_media":115030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-81451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/81451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=81451"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/81451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/115030"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=81451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=81451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=81451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}