I’ve compiled a list of steps to succeeding in real estate investing. This article is intended to deliver information on what I believe is the first steps in being successful in real estate investment, which are learning and taking action.
Learning is probably the easiest part of the entire process. There is no shortage of information, instruction, and data available to anyone, much of it is even free. Honestly the biggest problem for most people is that there is too much information available! The steps I lay out in the future will probably help to narrow down your search for information, but for now I’ll just say you can learn a lot by reading books. I “read” 70-100 audio books per year just by having them playing when I’m driving or flying instead of listening to music. It’s amazing how much information you can absorb by doing this. If funds are an issue and you need a zero cost learning strategy then podcasts and blogs are probably your best bet.
Alternate ways of learning about real estate investing include finding a mentor (hint: find a way to generate value for them), taking a job at a private equity or property management company, asking friends or family that are already investing in real estate how you can help them and create value for them (hint: come with ideas of what you might could do, like free physical labor or cleaning houses for free). You can also “birddog” for investors in your area, and use that as a way to network with them. Building those relationships can be incredibly valuable.
I’ll do my best to provide book recommendations in these blogs. For a beginner I’m not sure there is a better book than Rich Dad Poor Dad by Robert Kiyosaki. It does a great job of covering the basics and the abundance attitude that you need to be really successful in this business.
Don’t get caught in the learning trap. There are literally hundreds of thousands or millions of people out there that are constantly planning but never starting. Some suffer from analysis paralysis, others are convinced they just need more information to feel comfortable enough to do their first deal. As is true with most things in life, you’ll learn more by doing than by reading or taking classes when it comes to real estate.
With that said, there’s lots of things you shouldn’t do. Don’t do a huge deal for your first deal, don’t wait for the absolute steal of a deal, don’t speculate (it’s really just gambling), don’t take any more risk than is absolutely necessary, don’t take on a deal that will destroy you or your partners/financiers financially if it doesn’t work out, and don’t partner with people or lenders without a clearly written operating agreement and separation agreement.
I hope this information is helpful. My plan is to do a series of these blogs that touch on a subject matter, then come back to do deeper dives in written and video form. Send me your feedback at kevin@kevindmay.com with subject “Blog Feedback”. Thanks!