Ready to start investing in real estate

[Anthony Taylor]

What is the first thing we need to do to develop a plan for passive income? We want to think realistically and take baby steps if possible. We're reading books and listening to podcasts.

[Scott E.]

First newsflash... nearly all real estate requires some involvement. True passive income is income that you earn all day, while you sleep, without lifting a finger or thinking about your investment. There isn't a real estate investing strategy that will offer you that, outside of investing in a REIT or syndication deal.

But with that being said, here are some baby steps to get you going on buying rentals:

1) Get educated via books, podcasts, the forum, etc (you're already doing this)

2) Network. Start calling real estate agents, general contractors, sub contractors, property management companies, lenders, architects, designers, title companies, stagers, etc. Tell them about your plan.

3) Pick a sub market. Start studying different sub markets within your market to decide where you want to start investing. Drive every street often. Pay attention to how the fixed up homes look, and what homes in the neighborhood need a little love. Take notes on what homes are worth fixed up compared to what the homes are worth that need work.

4) Find a mentor. This can be somebody from the forums, another local investor, or even your real estate agent. But you need a trusted advisor that you can bounce things off of as you fumble through your first deal.

5) Start writing offers.