How to Start Real Estate Investing in 2017

[Benjamin Riehle]

It’s 2017 and you want to start investing in real estate. A lot of people want to invest, and they want to improve their financial wealth, but few actually take action. Whether you’re a newbie to BiggerPockets or you’ve been an active member, I want to provide 8 steps to help get you started on the path of real estate investing.

***Once you finish reading the article, comment below on your goals for 2017!

• 1.Get a Mentor

I cannot emphasize how important this is to get you started. Meet with someone in your local area who has had success in your market. Many people in the real estate industry love meeting, learning, and sharing with others, so don’t be afraid to ask to meet with someone! When you meet, they can share their experiences, the good, and the bad. It’s important to ask as many questions as possible! What do you look for in a property? What areas do you avoid? What areas do you love? What kind of financing do you use? If you like what you’re hearing, ask if you might be able to shadow them or provide any assistance to them in exchange for learning more and more about real estate investing. If they say yes, then be ready to learn as much as you can! If they say no, then meet with another investor until you land a mentor. This is a crucial step in your beginning success in real estate investing.

• 2.Business Mindset

It’s important to understand that real estate investing takes a lot of time and planning. You’ll have to make changes in your current lifestyle in order to set aside time for investing. Owning even one property will take time and effort, so be sure that you can handle the necessary workload!

• 3.Set Goals

Where do you want to see yourself by the end of the year, in 5 years, or in 10 years? The investing goals you set can be an amount of income, certain number of properties, network with an “x” amount of people, etc. When determining them, aim high but also be realistic. Get very specific and figure what you’ll have to do daily in order to reach your current and long term goals.

• 4.Find your Niche

Real estate investing is a very broad topic. There’s flipping, rentals, notes, commercial, and the list goes on and on. Determine what you want to invest in and stick with it. This will help you to become an expert in that area of investing. Your niche may be determined by your goals. If you want to build passive income, you will probably want long-term rental properties. If you want to be in & out of a property relatively quickly, you may want to fix & flip houses. Figure out your niche and focus your attention on that to accomplish your goals.

• 5.Do your Research of the Market

It is essential for you to know if your niche will work in your market. For example, although a house may seem really cheap and you want to flip it, will someone in the area actually buy it once you fix it up? Many may recall houses in Detroit, Michigan could be purchased for less than $5,000. People thought it was a great deal, but in reality, they couldn’t resell them or rent them out. A property may look good at a first glance, but make sure you do your research and understand the market so you can set yourself up for success.

• 6.Get your “A” Team (Agent, Contractors, Property Management, etc.)

You're going to need help along the way. There is just not enough time in the day to be an effective investor if you have to do everything yourself. While it may sting for you to have to pay someone else, it's what many very successful investors do to enable them to grow their investment portfolio. First, get an agent who understands investing. This is critical when it comes to helping you see what's on the MLS. Your agent will be another resource for you to talk to about the market and whether the property has potential as an investment. While it is possible to not have an agent, it'll be hard to rely on other listing services because you won't be the first person to see a good deal when it is posted. Second, have contractors at the ready in order to fix up your properties if need be. Network with other investors in your area to determine which contractors are reliable and/or affordable. Lastly, have a property management group that will oversee your properties if you have rentals. Although you may be very capable of managing them yourself, a management group will be necessary when you have multiple properties.

• 7.Be Picky & Be Patient

While there will be many investment opportunities, stick to your knowledge of a good deal. There are many resources for you to determine what a good deal looks like. Be sure to have a strict checklist when it comes to your investing because you don’t want your first property to create a deficit that makes it problematic to continue investing. While you should be picky, you must also be patient. You may start looking at properties and get frustrated because there isn’t a good deal for you, but do not be flustered! The time will come and when you find your first property, and it’ll be so rewarding. Stick to what you know and you’ll reap the rewards.

• 8.Keep your Goals in Mind

Beginning in real estate investing is a big responsibility and whenever you may be stressed, tired, or nervous, remember why you began and think about the goals that you made. There’s a reason why you’re on this site and there’s a reason why you’re reading this article. No matter what life throws at you, keep your eyes on the prize. Trust me, it’s worth it.