It's late at night and the television is showering you with visions of riches and freedom. Story after story is played out on the screen of average people, some of them just like you, who went on to make a fortune investing in real estate. And after the show is over you're left wondering what you need to do to get started on the road to wealth. This article is my answer to your search. It is the three-step action plan I recommend to help you get successfully started investing in real estate.
Making a Decision
You have a decision to make. Are you prepared to persist in your investing until you win? No matter how “easy” late night television makes it seem, getting started investing in real estate takes work. And don't listen to anyone who tells you otherwise. But without question, real estate is still the most accessible pathway to financial success for the average person. Are you prepared to stick it out for the three to six months it's going to take you to serve your investing apprenticeship? Because if you invest 5-15 hours a week over this period of time, you can change your financial future. They key is to never quit. Commit to six months of effort, with a good attitude and a mind open to learning, and you're well on your way to success.
Invest In Your Real Estate Education
Earlier this week I was talking with a MBA graduate from a prestigious business school. He told me that he spent two years of his life and over $75,000 for tuition to earn his advanced degree. Why did he do it? To secure a solid, high paying job. The good news for you the beginning investor is that it isn't going to cost you $75,000 (or even $10,000 for that matter.) But you are going to have to budget some of your time and money into your real estate education. There is no faster way to learn what you need to learn so that you can earn what you need to earn than through the wealth of information you have available for you on real estate investing.
There are three specific areas you need to learn about to help you on your way. First you have to gain a good, general investment understanding. This means learning how properties are valued, how title is transferred, what title insurance is (and is not), as well as other general real estate terms and concepts. You've taken a good first step by consistently reading this magazine. Now expand your learning by reading every book on investing you can get your hands on.
Next you need to learn about creative financing techniques because they let you buy and control property with a minimum of risk and with a large profit potential. You need to especially learn all you can about lease-options. In my opinion, lease-options are the best way for you to begin investing in real estate. They offer you the easiest way to do nothing down deals no matter what your credit is like.
Third, you need to learn how to find motivated sellers. A motivated seller is someone who because of some personal situation or circumstance is willing to sell you his property at a substantial discount or on very flexible terms. When you're investing, it all begins with finding a motivated seller. It's almost never about the property itself. Rather, you make money (a ton of money) by dealing with a highly motivated seller. Every technique you learn about finding motivated sellers will repay you a hundred times over.
To be successful you need to invest the time and money to learn. As the saying goes, you can either pay now or pay later but sooner or later you're going to pay. Why not pay pennies on the dollar for someone else's life experiences than have to learn the painful lessons yourself?
Get Started Immediately!
The biggest challenge most new investors make is waiting until they know it all. They feel if they just spent more time learning before they get started, then they'll get to their financial goals that much faster.
But unless you are willing to start learning by doing you'll never enjoy the security and freedom that could have been yours. By all means study and learn, but make sure you also are out there learning by doing. You will be amazed at how much faster you will integrate and internalize the investing information you are studying when you conscientiously work to apply it.
Each week spend a half hour getting clear on what you have learned. Also, take a few minutes and ask yourself what you still need to learn and focus on to make maximum progress next week. Find another investor you can network with so that the two of you can talk through your common experiences and support each other. Ultimately you can strike it rich with real estate. It's all up to you. You're at the front end of a journey. Just follow these steps and you will be well along the road to wealth.