First steps for New Real Estate Investors

Being a new investor can be intimidating. There’s so much to figure out. It’s easy to spin to many wheels and end up not getting anywhere.

Here’s a list of a few simple steps new investors should take to help make progress in their investing journey.

1- Come up with an investing strategy. I will make another post on this specific topic soon - but make a list of different types of investments. Read about them, watch the podcasts on BP. It’s important to be realistic. For example if you want to flip a house don’t necessarily go for the million dollar mansion to start and risk all your capital if you don’t have experience in construction and flipping a house.

2- Research forming an LLC or corporation for asset protection and tax benefits. Form a corporation that best fits your strategy.

3- Pick a market. This seems obvious as being the market you’re in. However due to different price points some markets don’t fit every investors criteria. For example if you live in the San Francisco Bay Area but don’t have a lot of money to invest it may be a better idea to look into investing in another market, private lending,etc.

4- Meet people. On BP, at local meet ups, at investing seminars, etc. You want to meet people who are actively investing. You want to learn from them - the good and the bad! Increase your learning curve before investing and it can help you in dealing with challenges that arise. Have an experienced investor help you on your first deal or two and pick their brain.

5- Make Real estate connections- meeting people in the real estate industry can also help you find deals and opportunities that others don’t know about. The more people that know what you’re looking for the more likely a good deal will come your way.

6- Plan your financing. Are you paying all cash or are you going to borrow funds? For those borrowing funds make sure to shop around and get the best pricing. Ask people here on BP if anyone has a contact of a lender they use and gets things done at a fair price. Again the more lenders that know you’re looking for a loan the more likely You’re to find a good deal on financing.

7-Finding a deal. I will make a specific blog post on this soon- as there are a lot of tips and tricks to finding deals. The more agents, wholesalers, appraisers, Inspectors, escrow officers, lenders , etc that know you’re looking for a deal the more likely you’re to find one. A lot of finding a deal comes down to being willing to do what others won’t. Contacting as many people as you can in the real estate industry is tedious and takes time. Once you make those connections It can help in so many ways for years.

These are a few tips for new investors to get started in their investing journey and to keep things simple.