Are you new to real estate investing? If so, maybe you’re a little confused on how or where to start.
No worries. I’ve got a simple but effective, no-nonsense plan that will help you get some clarity around your goals and get you taking the action you need to take to get on the path to success.
First things first. You must establish a good foundation. That goes for real estate or any other venture either both business and personal. The successful real estate investor has a plan, a strategy (or multiple strategies) and a team in place. You may not know every single step between where you are and your end game, but you need to at least be able to think a few moves ahead — kind of like a chess game!
So what goes into a good plan or strategy? Let’s break this down:
1. Your plan – To get what you want — what you really and truly want in life — you must first know what it is and what your idea of success looks like. This takes some time, and while I know you’re eager to get rolling, sometimes it’s beneficial to let an idea or a plan cook for a while. The key here is to get really specific. I’m talking exact figures, numbers, dates, even pictures. The more energy you put into visualizing and formulating a plan up front, the easier it will be for you to manifest. Here’s another tip: don’t just plan in your head. Write it all down! Your plan should have a clear end goal, a timeframe within which you want to achieve that goal and an outline of all the steps and actions you will need to take in moving toward that goal.
2. Your family – You will be learning new and creative ways to be successful. You will be meeting new friends, colleagues and establishing a real estate investing team. The important people in your life should be involved and support you. It’s a struggle for any of us to balance work and family, and often, this is doubly so for entrepreneurs. Have a series of open, honest talks with your family and support system. Give them a heads up about what’s coming down the pipeline so that everyone is prepared. Let them know exactly what you will need in the form of support. Listen to their ideas and suggestions (you might be surprised at what you can learn!). And most importantly, collectively decide on and commit to time that’s dedicated to just family.
3. Know your numbers – Never totally rely on anyone else to comp a property or estimate repairs! Crunch the numbers two and three times if you have to. Don’t take the first offer. Don’t be afraid to shop around. More importantly, know what your personal success numbers are. What’s the exact figure for the money you need to be making for you and your family to live comfortably? How many sales will it take to achieve that number? You now have a solid goal!
4. You must be present – Networking is vital to your success. And even though the internet has made the world much, much smaller, there is no substitute for a face to face connection. And there’s nothing like the synergy that takes place when driven, creative, like-minded people get together in a room to work toward a common goal. Reach out. Follow up. Make those connections. And after you’ve made them, remember to nurture them. Most importantly, show up for yourself. There is no substitute for doing the work.
5. You and your investing must be law-abiding, authentic, and equitable – a lot of business owners, both first-time and seasoned, get into trouble here. Most times, it’s simply a matter of not knowing or not being aware that you’re not in compliance with a regulation or a law. Seek legal help here. Know the ins and outs of the laws in your state and make sure your business lines up. More importantly, always communicate and conduct yourself with integrity. In real estate, as with many other types of business, your reputation is everything. One bad business dealing could adversely affect you for years to come.
This quick overview should help get you moving, but remember, never stop learning. There’s lots you’ll figure out along the way just by doing, but also seek counsel and advice from those who have been there. This blog is a great place to start!