Every week, several people start threads asking how to get started or which market they should choose.  A year ago, I started asking the same questions and have a brief summary of what I think a new investor should do to begin investing in real estate.  I started my journey with a good W2 job and a little bit of money, but 6 months after deciding to do it, I purchased a duplex in San Diego.  I made my decision to begin in June of 2018 and 6 months later was under contract on a heavy value-add in one of the hottest, most expensive markets in the country.  If it worked in SoCal, I think this should be a path to get started almost anywhere else in the country.

1.Get educated.  Immerse yourself in books and podcasts.Learn metrics, lingo and strategies so you can talk with other people who are doing what you want to do.  Bigger Pockets, Michael Blank and Jake and Gino have excellent podcasts (I focus on residential multifamily), but there are several others that are amazing resources as well.  When you listen to these podcasts, read the books they recommend.  As the concepts they discuss become more redundant and you start to put your own spin on what you’re hearing, you’ll be ready to start testing theories on other local investors.  To do that, you should get out of the house and go talk to people!

I read and recommend you read all of several of these books:

Rich Dad, Poor Dad – Robert Kiyosaki

The Complete Guide to Buying and Selling Apartments – Steve Burgess

Millionaire Real Estate Investor – Gary Keller

The 4-Hour Work Week – Tim Ferris

The Best Ever Book on Apartment Syndication – Joe Fairless

The Richest Man in Babylon –George Clason

Raising Private Capital – Matt Faircloth

Long Distance Real Estate Investing – David Green

Crushing It – Brian Murray

Cashflow Quadrant – Kiyosaki

The Book on Investing in Real Estate with No (and Low) Money Down – Brandon Turner

Multi-Family Millions – Davis Lindahl

The Book on Flipping Houses – J. Scott

What Every Investor Needs to Know about Cash Flow – Frank Gallinelli

The E-Myth – Michael Gerber

Emerging Real Estate Markets – David Lindahl

Timing the Real Estate Market – Robert Campbell

The Goal – Eliyahu Goldrant

Buy and Hold – David Schumacher

The Book on Estimating Rehab Costs – J. Scott

The One Thing – Gary Keller

The Fountainhead – Ayn Rand

How to Make Friends and Influence People – Dale Carnegie

Awaken the Giant – Tony Robbins

The War of Art-Steven Pressfield

2.Start networking.  Look for people you connect with in your social circles and at real estate meetups.  At meetups you need to figure out a polite way to break away from conversations to continue talking to other people in the room.  “It was great to meet you!Can I have one of your cards so I can follow up later?I want to see who else is here that I haven’t met…”  Talking at these meetups is a numbers game.  You’re only looking for a few people who you’ll want to work with but to find them you’ll have to talk to as many as possible.  You also need several different people on your team.  Go find them!I met my current partner at a kid’s birthday pool party.  My wife’s coworker may be my first money partner.  Talk about what you want to do with everyone you can.

3.Can you find a mentor?  Don’t be annoying but can you make a good enough impression on someone with experience who will let you buy them a beer or coffee on occasion in exchange for some guidance?  Can you do anything to provide value to them?It isn’t up to them to tell you how to provide guidance.  Don’t be annoying.  I would try all of this before looking at buying a mentor.

4.Choose a market and buying criteria.

5.Figure out your financing.  Talk to banks, Mom and Dad, your rich Uncle, friends and family.  How much money do you have/need and what is your purchasing power.  If you don’t know how much property you can buy, you’ll waste the time of any good agent who then won’t return your calls.  Don’t waste other people’s time.

6.Find a Real Estate Agent you like and who wants to work with you.  They will probably want you to sign an exclusivity agreement.  If you like them, sign it but make sure you understand each other’s expectations.  If they’re just ok but are the only one who gets back to you, keep looking (and educating yourself because you probably don’t come across as credible, yet).  You want and need a good agent who understands your criteria and won’t waste time talking about properties that are not a good fit.

7.Look at properties, run your numbers and make offers.Take action!  “You miss 100% of the shots you don’t take.” – Wayne Gretzky

That’s how I got started.I immersed myself and became a sponge for information.  Now I’m establishing a track record and have a much clearer vision of what I’m going after.  The best part though is that I’ve done a deal and don’t feel like such a newbie anymore!

What was different about your first year in real estate?  What tips, tricks and education helped others get started?