Ali Safavi's 3 Tips For Fresh Faces in Real Estate Investment
Real estate investing is like any hobby or profession, we all have to start somewhere. We’re all timid to put money on the line, especially when returns are not a sure thing. But risk earns reward, and there is plenty of information out there to get you started.
We all wish we knew more. Knowledge is power, and we’re always seeking to have more of it. There are so many variables in real estate it can be hard to know how to weigh the good with the bad. What kind of upkeep is involved? Is this the right neighborhood to invest in? What if bad tenants tear the place to shreds? These are all real issues that come up every day.
So, if you’re new at this and feeling a little overwhelmed, first take a breath. Second, keep on reading for an easy digestion of real estate suggestions.
Don’t Be Desperate
Avoid the common thought, “I just want to get in the game! Even if it’s not the best deal, it’s A deal and we all have to start somewhere.”
Don’t let your excitement cloud the reality of the deal. It’s not about how many deals you do, it’s about the money you can make with each opportunity. If you’re trying to get your feet wet as quick as possible you are destine to drown. It’s a tail as old as time (Okay, maybe not that old) but either way, stay dry. Good deals will come to those who wait.
Real Estate Mentors Are Like Fruit, Some Are Rotten
Investing often starts with a mentor, someone to show you the ropes. Perhaps they set you up with your first deal, or bring you in on theirs. Sure, these can be great opportunities, but not all mentors are created equal.
I’ve heard too many stories of real estate mentors who offer help, but in actuality are using new investors as a pawn to mitigate risk. “But they seemed so nice!” Unfortunately, nice is easy. Trust is the hard part. No matter what anyone says, make sure you are doing your own homework.
Watch Out for Pay to Play
Real estate investing is one of the best way to get returns while having a sense of control. However, it’s also one of the most spammy professions in the United States. Do a quick search on Craigslist or in your junk folder and you’ll find dozens of expensive classes, webinars and seminars that are, “Sure to get you rich quick.”
We all need education, this is true. Some classes and webinars are well worth it. It is definitely beneficial to hear a real person talk about investing so that you can ask questions and get immediate feedback. Just ready 10 blogs a day probably wont get you to the finish line. But remember, the people hosting these classes want one thing – your money. Like in many money businesses, the least they can give to get the most out of you is what they’re after. You should never be laying out 5K-10K for a class. These hotel conference seminars are getting your hard earned dollars without really offering you anything concrete in return.
Just like finding a trusted mentor, do your online research. See what reviews are available for classes. Watch YouTube videos and learn from people that have a proven audience that trusts them. Education is necessary, but it can also bleed you dry (kind of sounds like college).