3 Simple Steps To Get Started Investing In Real Estate Today
3 Simple Steps To Get Started Investing In Real Estate Today
Hi guys, my name is Chris Logan and I am a real estate investor out of Tampa, FL. I get asked a lot by my friends, family and connections "How to get started in real estate investing?". My follow up answer to this is usually "where would you like to start?". I then get a very puzzled look followed by this answer…."If I knew that I wouldn't have asked you :-)". So where does a new investor get started?
There are multiple ways to get started if you have the desire, but are just lacking the know-how. So, I have put together a simple 3 step road map for you to follow to success.
1. Bird dogging- this is usually where most people start. This is where you find properties for other investors and get paid a "finder’s fee" for the property you find. You either get paid up front or will get paid once they close on the property. You can usually make anywhere from$250 - $1,000 for each property you find. This can be a great way to build a consistent income and gets you in the habit of looking for properties other investors want to buy.
2. Collect Finders Fees(only if you are finding properties for a real estate agent/investor and are able to convince them to be their assistant) -This is similar to bird dogging, but now you are marketing the property for this investor/agent and instead of finding a property, you are now finding a buyer. The reason you need to become the investor/agents assistant is because this is the only legal way to share in "commissions" from the sale of a property at closing. Collecting finder’s fees can bring in anywhere from$1,000-$2,500 depending on the deal.
3. Real Estate Wholesaling -In my personal opinion this is the absolute BEST way to start. It combines the first 2 steps, but you can make ALOT more since you are now finding the deal, marketing it, finding a buyer, then closing on the property yourself. The best part about this is that it's possible to wholesale or "flip" a property andmake anywhere from $2,000 - $15,000 without any of your own cash or credit. In this strategy you are putting a contract on a property and then turning around and selling your contract to another investor for a fee. The difference between the price you negotiate with the seller and what you end up selling your contract to the buyer for is your fee. Pretty cool huh?
In Closing...
Once you master these 3 strategies you can then move on to other strategies like rehabbing, lease options, sandwich lease options, wholesaling lease options, owner financing and much much more. HOWEVER, the most IMPORTANT thing you MUST do first is find a mentor.
How do you find a mentor?
Whether you pay for training or find someone to teach you for free in exchange for finding deals for them, having a mentor is an absolute must. This will also speed up the learning process and have you making A LOT more sooner.