I want to start investing, and as I continue to educate and become more involved in real estate, I feel as though everyone is starting to invest in real estate now.
I know this may sound absurd, but as a newbie, I’m feeling discourage and think that there aren’t enough properties to go around for me to get a piece of the pie.
Competition is extremely high in Philadelphia. I can’t even find available mutifamily properties to house hack.
Is there any advice, statistics, or facts that can help me not feel discouraged about investing in real estate? Once again, it seems like everyone is doing it now. Also, are there strategies to dominate the competition despite the market a person is in? Any mindset advice?
Thank you in advance!
Starting out in Real Estate is not easy. We currently only have 3 properties and it is still rough trying to get enough cash together to grow and finding the next property.
In Springfield, MO our cost per sq/ft is extremely low compared to other markets and a lot of outside investors are starting to come to the area and buy up multi-family which is driving the price up. So... what did we do? We focused in on single family homes that needed to be renovated. These SF units are not very cost effective for out of state investors so there are still a few good deals out there to buy up.
Moral of the Story: Don't get discouraged because Plan A isn't working. There are opportunities in every area, but you may have to change your investing method in order to find them.
As a real estate "newbie" myself, I know exactly what you are talking about. One of the biggest things I have found to be helpful is going to local meetups and hearing from other local investors about how they are having success in your market. It gives me motivation to see other people succeeding in my market and makes me think "if they can do it, so can I". Most people are happy to help you out and give you the tools to get started if you show you are willing to learn and offer value to other investors in return.
As far as mindset advice, there are plenty of books to help you get your mind in the right place for beginning to invest in real estate. I would recommend "Grit: The Power of Passion and Perseverance" as well as "The Miracle Morning" which can both help you focus in on attaining whatever goals you have.
Just remember, even though it may seem like a lot of people are just starting to invest in real estate now, a lot of those people will give up on their dreams. Use that as motivation to stay strong and push forward by establishing concrete goals and accomplishing small steps every day that get you closer and closer to attaining those goals. Good luck, Eric!