Getting Started As a Real Estate Investor

[Jun Bumanlag]

Whether you are new to real estate investing, or you have just reached a "plateau" and need some ideas, these reminders will help "jump-start" your real estate investing career and get you back on track.

Surround yourself with like-minded people
"Creative" real estate is non-traditional, which means that most people don't do it this way. Thus, most people you speak with will tell you it won't work. If you tell them you heard it in a seminar or a course you bought from a late-night television "guru," they will laugh and call you "gullible."

Attorneys and other professionals will denounce it because it sounds unusual. Keep in mind that these people are either threatened by their own lack of success or are looking to protect their own butts.

The first thing you should do is join a local real estate investment club. These associations will help you keep your thoughts in the right place and prove to your subconscious that it really does work.

If you cannot find a group, form a "mastermind" group that meets for breakfast once a week. If you don't know what a mastermind group is, you should read Think and Grow Rich by Napoleon Hill. If you have read it already--read it again, again and again.

Have a team
Don't wait until you have a deal brewing to find the players. You need to find the following players on your team right now:

*Attorney
Preferably one who does real estate deals for himself as well as others.

*Title or Escrow Company
Stay away from the big name companies, and find one that caters to investors. Make sure they understand double closings, land contracts etc.

*Insurance Agent
Find one who understands land contracts, landlords, etc.

*CPA
Find one who is aggressive and owns real estate.

*Contractor
One who will give you free estimates and knows how to "cut corners" in the right places.

*Mortgage Broker
One who is savvy, creative, and experienced with investors.

*Partner
In case you need one for money or experience.

*Mentor
Someone you can call to smooth out the rough spots.

Don't talk to unmotivated sellers
This is the biggest mistake I see beginning investors make. They waste time talking to sellers who are marginally motivated. Even worse, they drive by the house and look for comps without even talking to the seller first! Never visit a house before speaking with the seller over the phone.

I love Ray Como's Mastermind Script Book. It has hundreds of questions designed to extract the seller's motivation over the phone. Heck, the course will save you enough gas money to pay for itself!