What do you find essential to start investing?

Question

Hello BP community, I am curious. Looking back, if you could comprise a list of absolutely essential elements to have before beginning to invest, what would it include? We all know that any new investor can start diving head first into info to get started, and quickly become overwhelmed with everything they encounter. So, to most easily avoid analysis paralysis, what would you add to a “checklist” of things to have in place before you move to your first deal? Thanks!

Scott Jensen · Answer

A strong financial position.

A desire to learn.

A willingness to work hard and get it done.

Ryan Beasley · Answer

@Cody Smith I would say make sure that you are the type of individual that would be okay with the day-to-day of being a Real Estate investor. Make sure it’s your passion and that you have a strong purpose behind what you’re doing.

For instance, I hate having to reach out to people to collect late rent. Dealing with tenants stresses me out severely. So therefore, every property I purchase I make sure there’s enough margin for my property management fees.

If you have the passion, purpose and personality for this business then you should have no problems succeeding!

Cody Smith · Answer

@Scott Jensen

Patience is the key word there, something I definitely need work on! Thank you for the advice. It truly does help the mindset.

Scott Jensen · Answer

Yeah, you're on the right track. Some of it is just being patient while you get your own stuff in order.

Remember, you just need a few houses.  So out of the thousands of houses that get sold in your area each year, you just need your 1 or 2 or whatever your goal is... So if 99% of the houses don't work for your criteria that's fine. Figure out how to get the 1% that work for you.

David Goings · Answer

@Cody Smith I am on the ground in Columbus GA. I'm full time real estate and love it here. Starting up is the hardest part of the journey until habit takes over then it's game on. But like others have said, it is not something you can take on without a passion for it. A lot get started and are fired up then give in when they find its just another job during the early years. If you want to grab coffee downtown sometime shoot me a PM.  - Dave

Cody Smith · Answer

@Scott Jensen

I’m currently working on finalizing eliminating all bad debt. Because of my financial position, I should be able to do that very soon, and still remain in a good starting position with capital. I know that I want to focus on buy and hold for now, hopefully with multi family. I guess my main sticking point is the market location. My current city (Columbus, GA) doesn’t quite have the most impressive housing market, except for the northern portion, mostly newer builds. Most multi family I would consider C class or lower neighborhoods. There are some older areas with SFH that have a lot of potential. I haven’t been analyzing as often as I should. I guess I question too often what exact stage I’m in with the process, and where to go next. It sounds like I just need to continue to work on debt elimination, and analyze everything to better learn the area. Does that sound correct?

Cody Smith · Answer

@David Goings As is the case with anything that matters, that first hump is definitely the hardest. I guess that now puts a little more perspective on jumping in and getting past the first deal, getting over the hump.

Cody Smith · Answer

@Ryan Beasley Thank you for the advice. I’m also realizing in addition to the things I listed to Scott, that I need to get a better connection with the people in my area. I’m sure learning the market and how to still succeed in the less desirable areas will be streamlined with some relative experience. Gotta start networking.

Ryan Beasley · Answer

@Cody Smith All of these are important. If you already know how to Analyze a deal and you’re financially prepared to jump into whatever strategy & property type you want. I would start by getting my feet wet with calling, mailing and talking to property owners about their property. Get leads, find some deals and make something happen.

If you can correctly analyze a deal and you’re in a good financial position then the only next step is get started networking and prospecting. The best place to start is where you’re at!

Scott Jensen · Answer

It looks like your steps are in the right order. You don't need to wait to start analyzing deals though. Analyzing deals helps you figure out what is possible in your area which helps you determine the types of deals you can do and what markets you can work in.

What step are you getting stuck in?

What do you find essential to start investing?

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