4 Steps for the Newbie Real Estate Investor to Get Started
As a newbie to real estate investing, it may seem difficult to pinpoint where to focus. With so many different techniques, strategies, tools, books, seminars, and gurus . . . where do you start?
You start by educating yourself. But not just from real estate investing websites, books, courses, etc. There’s a lot more to education than that. Let me explain . . .
4 Steps for the Newbie Real Estate Investor to Get Started
Step 1 - Read, Listen, Watch
There’s a plethora of ways to consume information on real estate investing.
If you like to read, find several websites that appeal to you and subscribe to the email updates or RSS feed. Become active in one of the real estate investing social networking sites or forums. These are great places to start your education. One of the best books I can recommend for the aspiring creative real estate investor is “Making Big Money in Foreclosures,” by Peter Conti and David Finkel. It’s not just on foreclosures either. They cover many different aspects of the game.
My business partner, Dusty, prefers to listen for the majority of his education. Listening to educational CDs in your car is an extremely easy thing to start doing that doesn’t require additional time on your end. Turn your car into Automobile University.
Maybe you prefer to learn through videos. All you have to do is go to youtube and search “real estate investing.” There are literally thousands of videos to choose from.
Check out our youtube channel. If you want to know every time we upload a new video, make sure to subscribe.
Step 2 – Build Relationships with Active Investors
Find a local investor in your community that is an active investor . . . meaning they are actively involved buying, selling, and leasing property in a similar niche to your own. This will become one of the most valuable relationships you can cultivate.
You can learn from the experience of this investor and have someone to pass deals by so you don’t make a big mistake. Often times, other investors are more than happy to help beginners get started because someone did the same thing for them.
“Sooooo, Patrick, how do I find an active investor?”
The easiest place is your local real estate investment club. But, another way would be to call other investor’s marketing that you see like newspaper ads, bandit signs, billboards, etc. Look to find a real mover and shaker and ask them if you could take them out to lunch or for coffee.
After you determine that someone is an active investor . . .
Say, “Since I’m a newer investor, one of my goals is to build relationships with other investors. I’d like to buy you lunch (or coffee) and pick your brain a little bit. Maybe we could find some ways that I could help you in some way. Would that be something you would be intersted in or probably not?”
Step 3 - Take Action Immediately
This is where your education kicks into overdrive. Until you take action on what you’re learning, you not much of an investor.
Making that first call, investing that first chunk of change into marketing, going on that first appointment (ready or not), is the only way you’re ever going to make it. It’s ok that you don’t know what you’re doing. Neither did I.
Take action, measure your results, do more of what’s working and less of what’s not.
Step 4 – Teach Other Beginning Investors
One of the best ways to learn anything is through teaching others.
As soon as I got started, I met other newbie investors at the local real estate investing club and started teaching them what I was learning. I wanted to share my new found passion with anyone willing to listen (that’s how excited I was).
Many beginners want to get started by wholesaling a few deals. I would let them know that I was actively looking for good deals and to call me if they had a deal they wanted to wholesale.
One of the strategies I used to find deals when I got started was to knock on doors of preforeclosure leads. After I learned the ins and outs, I taught other beginners to go out and do the same. I taught them how to find great deals and contract them, and in return, they brought all the deals to me. Not only was this a great way to learn but also a great way to build my business.
Tags: Beginning Real Estate Investing, creative real estate investing, real estate investing, real estate investor education
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Patrick Riddle:
Dusty Keefe:
[...] posted here: 4 Steps for the Newbie Real Estate Investor to Get Started Share with [...]
Great article for those looking to get started in Real Estate.
I recommend following these tips.
Patrick…I wanted to comment on #2 on your list “Build Relationships with Active Investors”.
I have been conducting a lot of closed door interviews with “guru’s” over the past few weeks and one common theme of every interview is the importance of networking.
I would encourage investors to not only network and get to know other investors, but also take every opportunity to network with anyone in your community.
You never know when you will come across someone who themselves may be able to provide a missing piece to your business or they may no someone else who can do the same.
Start attending your local real estate investment club as well as any other business and entrepreneur networks in your city or town.
have you ever heard the saying,…
“It is not what you know but WHO you know”?
Cheers,
Ross Treakle
Ross Treakle’s last blog post..Where Should I Invest?
Ross,
You’re right. Networking in general, not just with active investors, is extremely beneficial (especially for newbies). That’s how I built the majority of the private money relationships for our company.
I absolutely agree with Patrick about marketing! I’ve learned, as a beginner, that marketing is the number one priority. No one calling equals no deals! Concentrate hard on marketing. If you find a deal, you will find someone to help you if your not in a mentoring program. If you are, just have your mentor walk you through the deal!
There is so much more to teaching others than just giving away your time and energy. I’m delighted that your were able to express some of the positive aspects with us.