What really stops first time investors from getting started? How do you get past those hurdles and limiting beliefs?
In my previous article, I revealed the 10 reasons investors say they are held back from getting started. Now let’s look at 3 solutions to each excuse, so that you can get started on your way to that first deal.
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.
How to Overcome the 10 Biggest Obstacles Between You & Your First Deal
1. Time it Takes to Get Paid
- Invest in rentals that are already throwing off cash flow.
- Wholesale properties.
- Begin part-time while keeping your day job.
- If your family doesn’t support you, find a group of people who do (via a local real estate club, BiggerPockets, etc.).
- If your spouse doesn’t support you, practice some “togetherness” exercises surrounding real estate, and explain to them how you plan to invest wisely, showing them numbers, spreadsheets, etc. to give them more confidence.
- Let the results speak for themselves.
- Find investment options that fit your current available capital.
- Partner up with other investors (know what you bring to the table — time, money, or deals).
- Tap into your inner circle, i.e. family, friends, former work associates (treat their capital as if it was your own in the event you go this route).
4. Saving Up Enough
- Invest first, then save a percentage of your returns.
- Pay yourself first out of every paycheck and invest that money.
- Leverage your savings with financing.
5. Finding Inventory Close By
- Check out new, upcoming neighborhoods that others might be overlooking.
- Look for deals in other cities.
- Look for out-of-state deals.
6. Intimidated by Large Dollar Amounts
- Set really big money goals, and understand it takes a lot of money to get there.
- Practice writing really huge checks to yourself.
- Choose non-recourse debt or syndications so that you aren’t taking on big loans on your personal credit.
7. High Property Costs
- Go to markets with properties for sale that are more affordable.
- Invest with partners.
- Search for discounted distressed real estate.
8. Marketing Budget
- Use Craigslist or handwritten letters (when I first started out, I wrote all my letters by hand until I had more funds).
- Pick up the phone and call. Pull public records to find landlords that owns multiple properties, then give them a call. I use Whitepages.com. You’ll be surprised to find that most people still have landlines (Baby Boomers especially).
- Door knocking costs nothing but your time.
9. Having to Create a Team
- Lunch with a pro in every real estate segment next week.
- Choose a turnkey investment with a team in place.
- Run free job ads on Craigslist, Upwork, and Fiverr.
Above are three solutions for each excuse for not getting started in real estate. They are all here served up on a silver platter. If you want more options, you’ll find them if you look. But the bottom line is that we each need to take extreme ownership of ourselves. If we aren’t getting what we want, it’s our own fault; no one else’s. Not the market, not your location, or the family you were born into. It’s up to you to take action.
Confucius once said, “The will to win, the desire to succeed, the urge to reach your full potential — these are the keys that will unlock the door to personal excellence.”
How are you tackling obstacles on the way to your first deal?
Let me know your story with a comment!