The Newbie Investor’s Mini-Guide to Breaking Into Real Estate

7

It never ceases to surprise me the range of ages people start to dive into the exciting world of real estate investing. From Millennials just graduating college to full-fledged adults juggling a 9-5 job and raising three children, it is never too early (or too late for that matter) to begin the difficult yet highly rewarding journey.

However, like all things in life, trying something new when you’re younger does make things much easier. So, if you are still a little unsure about getting involved in real estate investing, don’t hesitate too long and give this helpful mini-guide a go. After all, perhaps by reading this, you’ll be inspired to take that leap of faith.

How to Purchase Real Estate With No (or Low) Money!

One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.

Click Here to Download

How to Harness What You Have to Start

Motivation

No matter your age, no matter your disposition in life and no matter your surroundings, motivation is something that absolutely everyone can get. So be sure to use that. It is true that as your age increases, you can become less motivated as you become more complacent with your situation and no longer aim for the stars. However, don’t be one of those people. Stay strong and keep motivated because motivation is something that people and situations can’t take away from you unless you let them.

tax-extenders-2015

Technology

In today’s day and age, access to all the latest information is literally at your fingertips. So keep in mind that if you aren’t tech-savvy already, practicing until you have a firm grasp on how to use social media can be very beneficial. Also understanding the workings of the internet and your smartphone is crucial. Leveraging technology enables you to reach the masses at a rapid pace if used properly. Not to mention, with a resource as awesome as BiggerPockets, you have a wealth of information just a click away.

Related: Ultimate Beginner’s Guide to Real Estate Investing

Time

One of the best assets a person could ever have is time. Don’t hesitate for too long; otherwise, you might just see the sands of time slip through your fingers. Be sure that you create a solid plan now and follow it until you reap the rewards. Remember, time is something you can never get back!

Relationships

Similar to business owners trying to increase their networks, a successful real estate investor has to begin building relationships from early on. This is because relationships are a fascinating and powerful tool that can be used to your advantage, so if you do this right, you will be able to have a greater stepping stone for success. Therefore, I strongly suggest that you start building these relationships today, both locally and online. Make sure to go the extra mile when creating value for others and not make it so much about what you can get out of the relationship.

Your First Investment

There is no doubt that whatever your first investment property is, it depends on your current situation. Nevertheless, I strongly encourage that for the majority of people who take their first dip into the sea of real estate investing, it should be a main residence (some form of “house hacking“). 

So what other kinds of investments are the most appropriate for those starting out? Well, from what I see, here are two examples of great investments you can make.

The Distressed Property

Buying a cheap house with good potential then renovating and cleaning it up to form a high quality home is not a new story. Buy cheap, improve, sell at a higher price = Profit. Not to mention if you purchase the house with a fixed rate mortgage (strongly suggested), your payment will remain fixed for as long as it takes until you sell it.  

mobile-home-electronic-lien

Related: The 6 Most Common Mistakes New Investors Make (Including Thinking It’s Easy!)

The Small Multi-Family

A duplex offers a lot of different options. For example, you and your family might live in half of it while renting the other half out, enabling you to live rent-free and gradually allowing you to start investing in another property. This is because by occupying a small multifamily property, you will most likely be able to lower your monthly expenses while still having the luxury of locking in those low rates available to owner occupants today.

Now go forth and be great!

Newbies: Where are you in your investing process? Any questions about starting out?

Leave your comments below!

About Author

Sterling White

Sterling White started in the real estate industry at a early age back in 2009. The company he co-founded Holdfolio is a real estate crowdfunding platform based in the Indianapolis market. Before founding Holdfolio Sterling and partner Jacob Blackett were involved in the purchasing and selling of 100+ single family homes nationwide. In his free-time he trains for a World Record

7 Comments

  1. John bennett

    Thanks for the steller information Agent Sterling,it was so right on time!

    Your information on Multifamily investments in regard to rates for owner occupancy may save me some money, and get my 25 year old son out of the house!

    I appreciate you!

    • Sterling White

      I personally work towards separating friendships & business, so I would recommend not mixes the two. However if your friends have the right work ethic then go for it. Will be a great learning experience either way.

      Now Go And Be Great!

  2. Douglas Larson

    Sterling, Good summary for anyone intimidated with the basics! The very top graphic is concerning though!…
    The image looks like a young student trying to commit suicide by walking directly into oncoming traffic! Real estate can seem overwhelming but with bigger pockets forums and podcasts, local REIA groups and some of Brandon Turner’s books and courses a newbie can have hope!…
    No need to walk on the wrong side of the road. ;-}

    • Sterling White

      I didnt notice that. Interesting she is walking on wrongside of road. I hope that was intended!

      Great point Douglas with all of the resources available to newcomers it should help mitigate the overwhelming feeling when starting in this industry. Still so much to learn like venturing into any other new venture.

Leave A Reply

Pair a profile with your post!

Create a Free Account

Or,


Log In Here

css.php