How to Start Investing in Real Estate – For those who are just getting their foot in the door of real estate investing, and even if you’ve been in the business for a long time, remembering the basic principles can be a good way to get on track with whatever experience you have. It can be easy to take for granted certain knowledge and tricks of the trade, but following these tips for how to start investing in real estate can help jumpstart a lucrative career in what can be an extremely competitive business.
The problem many new and starting out investors make is to treat real estate as an experiment instead of a real business, or to commit to it only part time. But the first tip on how to start investing in real estate is to organize the right entity for your business (such as an LLC or Corporation) and to recruit people who have the same ideals and outlooks as you regarding the business. Just these small steps can quickly advance small time investors and help your operation flow smoothly. Here’s an idea of the right kind of people to have in your business at the beginning.
Title Company – ‘Investor Friendly’ title companies allow double closings, have knowledge of negotiating liens and judgements, can provide quick title/letter reports and can provide ‘binder title policy’. Finding a good title company should definitely be top of your list.
Real Estate Agent – A good agent is assertive, willing to learn new ways of doing business and most importantly, enthusiastic to do their job.
Attorney – A good attorney to work with must have real estate experience. Smaller firms or private practices – those looking to establish long term relationships with investors are probably your best bet.
Mortgage Broker – Find someone who has experience working with investors, is creative enough not only to locate, but to also use the products in order to get good deals done.
Mentor – Finding a mentor is especially important if you’re new to investing. A good mentor can answer questions or help solve dilemmas and help you make the right decisions to lead you in the right direction. If you’re determined to make it in the business, a mentor is a must.
Network with other Real Estate Investors
Another important tip in how to start investing in real estate is to never stop networking. Networking with the correct people can help open doors for you that might have stayed closed before, and with the advent of the internet, finding local investor clubs is easier than ever. Make sure to actually attend meetings, or keep up with other investors from around the world with the use of websites like
Facebook and Linkedin
Set Both Long and Short Term Goal – Track your Progress!
Those in the know how to start investing in real estate know that setting goals – both long term and short – is important to keeping your focus on what needs to be done. Goals can start out small and be achieved in a short amount of time, but long term plans can yield bigger results, and are usually set for the year ahead.
Also make sure you have both a financial plan and a personal plan. Analyze what changes you’re willing to make in your life that will help you achieve certain goals.
Be Open to Always Learning New Things
Real estate can sometimes feel like a living entity – forever evolving into something new – which means that tricks that worked even five years ago are now obsolete. Learning how to start investing in real estate means always keeping as far ahead of the ever changing trends; read and watch the news, keep up with your networking contacts, anything to educate yourself about the market. Remember that you can always lose more money making a mistake than you can learning how to avoid one. Don’t assume you know everything, even if you’ve been in the business for years.
It’s so easy for new investors to start out enthusiastically in the business, but forget to use the tips listed above. When that happens, many of them soon become discouraged or fail and ultimately quit. If you want to learn how to start investing in real estate, remember to give yourself and your business time to flourish – there will be rough roads ahead, but if you stick to the basic priciples of investing, you’ll soon be ahead of the game.