Real Estate Investing Blog

When you are getting started as a real estate investor, one of the things that might be tempting is to trust the hype. When the trend is flipping houses, there’s a tendency for those who are getting started to think, “hey, that’s the best way to do this.” When the trend is investing in commercial buildings, plenty of real estate investors think, “maybe that’s what I should do.”

Just because there is a trend that’s developing among real estate investors does not mean that you should jump on board. You need to know what information you can trust when you’re getting started - and to know what is going to work, you’re going to need to evaluate deals carefully and to get answers to the questions you have about a specific potential investment.

For those who want to do far more than just get started in real estate investing - for those who want to build successful businesses in real estate investing - the key is simple: take the time to think through your investments before you make them and make sure you’re not just following everyone else over a cliff. After all, getting started should be a beginning to a lucrative career, not a one shot thing.

When you are getting started in real estate investing, one of the most important things that you can do is going to be to understand what is realistic. If you are looking into getting started, if you just look at the promises of get rich quick schemes that you see on late night TV, chances are good that you won’t be looking at things realistically - working with a mentor is going to be the thing that helps you to keep your focus and to understand what the real process is like.

For example, let’s say that one of the programs that people want you to get into so that you can get started in real estate investing is all about the money that you can make with a rental property.

It is easy to get caught up in the hype; however, if you get started in real estate investing with a mentor instead of just a video you watch or a CD you listen to, one of the things that you’ll find is that you also need to take a look at how long it will take to find a tenant, the costs of updating and maintaining a property and to determine whether or not that investment will help you (you’ll also be able to get pointers on what that evaluation entails).

One of the things that you’re going to want to be sure that you’re keeping in mind when you get started as a real estate investor is that it’s important to understand the real estate market you’re investing in. You’re going to want to be sure that you aren’t just jumping into the business of real estate investment with the mindset that the only thing that you need to know about investing in real estate is what you can learn by watching Flip that House; after all, there’s a lot more to it than that.

Fortunately, there’s good news as well. Just because things aren’t quite the same as they once were doesn’t mean that getting started in real estate is impossible:

(source)even novices, with some coaching, can translate that life experience into the know-how needed for investing. But Terry Westbrook, associate broker with Five Star Real Estate in Grand Rapids, cautions that this kind of investing, especially “flipping” houses, has to be approached with today’s real estate conditions in mind.

In other words, when you’re getting started, it’s important to think about what you’re going to need to do - even more importantly, it’s important to know that you’re getting the support that you need throughout the process, the guidance that will help to ensure that you’re going to get started with movement in the right direction.

The investor mindset isn’t just about getting started in your business, it’s about recognizing that deals need to be evaluated before they are made, it’s about setting goals and then working toward them and it’s about knowing what’s going on in the market where you plan to invest.

Those who are planning to get started with investing in real estate as well as those who are in the process of getting started toward accumulating wealth as the result of real estate investments are going to find that studying the real estate markets is important. Be sure to note, I did say real estate markets because, well, there’s no such thing as “the real estate marketing” when you are getting started - there’s only the market that you are thinking about investing in.

When you’re getting started, therefore, you are going to want to be sure that you know where to look to find the right properties; you’re going to want to be sure of the real estate market in which you’re planning to buy - whether you already live within that community or you are looking into buying in a tourist destination or in an area where you would like to live someday. It’s essential, when you are getting started that you have a sense of what the market will bear for prices, how long homes stay on the market and how long rental properties are vacant.

Without information about the area in which you are planning to get started in real estate investing, you’re going to find that it is all but impossible to reach your goals.

One of the things that you are going to need to be sure of when you are getting started in real estate investing is fairly straightforward: when you’re getting started, it’s important to know that when you have questions you’ll be able to get answers.

Some people will tell you that you can get started by watching a video or series of videos about real estate investing, however, when you’ve got a question, don’t you wish that there would be an easier way to get the answers that you are looking for?

Similarly, there are people who are going to tell you that it’s possible to get started with real estate investing by reading a handful of books and articles. That’s great, but chances are good that there are going to be times when you have questions; do you really want to have to look up all of the answers that you need?

The only way to know that it will be easier to find answers when you’re getting started and need them is to make sure that you’re working with a mentor who has experience in making real estate investments. When you’re getting started and you’re working with a mentor, you’ll find that you get more than just answers - you’ll find that you’re on the road to success.

When you are getting started in real estate investing, you’re going to want to be sure that you’re able to focus on finding the right deals. Of course, the best possible way to do that is to work closely with a mentor while you’re getting started so that you can be sure you know the ins and outs and what a great deal looks like; but some new investors are looking for a few key details that will get them started on their own.

So, if you’re getting started in the real estate investment business and you’re not sure of what you should be looking for, the first answer is going to be areas with a relatively strong real estate market. If you’re looking at getting started with foreclosure properties, you’re going to want to make an effort to know that the properties you’re looking at are in good repair. If you’re going to be buying multi-family properties (and an aside to those thinking about getting started - you’re going to want to focus primarily on one type of property), you’re going to want to think about how long it’s going to take you to find tenants.

Ultimately, what you’re going to find is that you’re looking for properties that are a great deal and that will help you to achieve the goals that you’ve set for your business.

The decision to get started in real estate investing is one that can be difficult for many people. They wonder whether the timing is right to get started; they aren’t sure that they “have what it takes.” Well, if you’ve been waiting to get started in real estate investing, the time is now.

According to one investor out there, who cites Warren Buffet’s sentiment that, in order to succeed, you’ve got to be nervous when other investors are getting greedy and looking for the opportunity to snap up everything they see; the flip side of that sentiment is that, when everyone else is afraid to get started, you’re going to want to be sure that you are ready to act:

Everyone is “fearful” of real estate investing right now. Buffet is saying, “Now’s the time to get greedy…and buy.” So the more reports the media prints about the “worst real estate market since the Great Depression” the better it is for real estate investors.

Getting started is a lot easier when you’re aware of the market and when everyone else is nervous about pushing forward in it. By getting the right guidance and acting while others aren’t, you’ll find that it’s a whole lot easier to get ahead.

When you’re thinking about getting started in real estate investing, one of the things that you’re going to want to be sure of is that you have the confidence - and therefore, the courage - to move forward. Simply put, there have always been a number of people who want to get started in real estate investing who simply don’t act.

Those who want to get started are going to find that the process can be a little overwhelming. With a number of different tools out there that promise to be the best, with the number of “lessons” and seminars that promise to get you started on the right foot, some people who are looking at getting started in real estate investing are going to find that without the confidence to find the right guidance, without the courage to ask questions and to know that you’re going to get the answers that you need, getting started could be a bit challenging.

When you’re looking at the big picture, when you’re focused on the goals that you set for yourself (and identifying the right goals), and when you find that you’re able to focus on getting started on the right path, you’ll discover just how simple it can be to take advantage of the current market trends by getting started in real estate investing.

When you’re getting started in real estate investing, one of the things that you are going to want to be sure of is that you are able to know where to look to get the best possible deals. Knowing where to look, after all, is going to help you to save time, energy and frustration and - assuredly - increase your profits as a real estate investor.

The challenge that many new investors face when they are looking to get started in the investment business is simple: they don’t know the different between short sales, foreclosure auctions and multi-family properties. That’s why having guidance when you are getting started is essential.

When you’re working with a mentor when you’re getting started in real estate investing, you’re going to find that it’s a lot easier to learn the basics - far more so than you’ll be able to when you simply pick up a book or watch a video. Simply put, with a mentor, you’ll have one thing that is very, very important: the ability to ask questions and to get the answers when you need them. That one small thing, you will find makes it a lot easier to get things started and to be on your way to real estate investment success.

Those individuals out there who have been thinking about getting started in real estate investing are sometimes - but not always - aware of all of the options that are available to them. For example, many who are getting started in real estate investing - especially in these, the days of “Flip that House” and similar programs on network TV - are aware that it’s possible to purchase a home that needs a great deal of work, make the repairs and turn it around for a profit within a short amount of time. Others know that it is possible to purchase apartment complexes and other multi-family properties that can be leased out for steady income.

When they are just getting started, however, many people aren’t aware of the possibility of taking over a mortgage, of joining a real estate trust or of buying bank notes rather than actual properties.

That’s why having a mentor is so important when you are getting started in real estate investing: when you’re getting started with the help of a mentor, you’re going to find that you’re able to learn about more possibilities, that you’re able to focus on learning to make the right deals and that you are in a position in which you are going to be able to look at your options and know that you’re making the right choices for yourself and your business.