Getting started in any business is never easy. Getting your real estate investing business off the ground can be downright frustrating at times. There will be plenty of days when you question why you are in the business at all. Figuring out your way as you go can be difficult. The best investors have a plan before they start. If you are looking for a jumpstart, there is a blueprint you can follow. This may not work for every investor, but it can give you the catalyst you are looking for.
You should know up front that there will never be a perfect time to start. Many investors wait until everything lines up the right way before they begin. There is always something that comes out of nowhere. Even if everything looks good, there is always a catch. There will be something there you wish you knew, but don’t. You can start with some idea of how you want your business to go. From there, you should be flexible enough to change as you see fit. You can always use more money or more contacts, but you will never have enough. If you wait for the perfect time, you could be waiting awhile. Sooner or later you just have to go with what you know and get started.
The first place you should focus on is education. The better you know the business, the better decisions you will make. Your education will help you decide how you want to invest. If you don’t know what you are doing, you will have a tough time. A good base of education is the starting point for your business. It will help you with everything else you do. If you feel you know the business, you can network with people in your area. You can talk to realtors and have an idea of what you want. You also reduce the chances of getting taken advantage of. There are many different areas of the business you can focus on. Pick one or two and become an expert in them. In your spare time, read as much on the business as is available. It takes time to learn. When starting out, don’t focus on deals. Focus on education.
After you feel you know what you are doing you can start looking for deals. At this point you need to figure out how you are going to finance them. You can look at getting a traditional mortgage or hard and private money financing. Most investor loan programs need at least 20% down payment. If this is your first property you will have more options available. You can buy a duplex with a low down payment and rent out one unit. Investment loans can be difficult to get and close. Private money loans are available to the right borrower. Instead of looking at credit score they look at the deal itself. If you don’t have the property education you will struggle breaking down the deal. Private money lenders have higher rates and fees than a local bank. The advantage is that they are easier to work with. You can close more deals over the course of a year. Any way you plan on closing the financing should be in place before you look for any deals. The approval amount has a direct impact on what you can buy.
Nothing can help get deals quicker than networking. There are many ways to be a successful investor. By talking to different people you can hear different ideas. You should listen to everyone and form your own opinion. Networking can also help you figure out what deals to pursue. All experienced investors had to start somewhere. If you make a commitment to network you will find more deals fall on your lap. These may not be home run deals but they will help you gain experience. Every closing has many contacts that you can add to your network. A fellow investor may not want the $50,000 condo but it could be a great starting point for you. You can get these deals by how hard you network. Don’t use your lack of deals or experience as an excuse. Most people you network with are understanding and were in the same boat as you. If you network just one hour a week you will see the impact on your business.
Once you have an idea of how you want to proceed with your business should you meet with a realtor. A good realtor is important to your business. They will ask you about financing and what you are pre-approved for. They will ask you about what types of properties and in what areas you desire. By waiting until you have this information your realtor can find properties you want. You will also know what to look for and have some goals in place. The easier you can make it on your realtor the harder they will work for you
If you take things step by step, they don’t seem as intimidating. Instead of figuring out what to do, you can jumpstart your business and take action. Getting going when you are just starting out doesn’t have to be overwhelming. Start with education and make new contacts every day. There will never be a perfect time to start.