I started out by asking myself, "how do I begin investing in real estate?” After simply looking it up in Google, I came across an article by Brandon Turner, an entrepreneur in real estate, titled “How to Start Investing in Real Estate at a Young Age (or a “Young at Heart” Age)”. He mentions some valid points applicable to anyone who is just starting out in the business. He reminds the reader that many of us have “very little money”, “very little life experience”, and “poor credit” (Turner). I am currently a broke college student with nearly no spending money, nor a steady job. Also, I currently don't have any experience in the business of real estate investing. After reading this article, it has become clear to me that I need to start investing in myself, meaning I need to read books, ask people, or look at blog posts such as the ones on this website, to learn as much as I can about the ins and outs of real estate before I should take any action. Turner mentions the importance of utilizing the technology available to you like this website and others like it, to increase your network and general knowledge on the topic. Also, he points out that I still have lots of time to figure out what I want to do with my real estate career. If I can create a plan that lets me acquire some cash flow and stick to it, there’s no reason I shouldn’t be able to accomplish my goals.
Also, I am in the process of reading a book by Jay P. Decima titled Investing in Fixer-Uppers, where he says next step is action. Jay has been in the real estate business for over 40 years and has written various books on beginning in the business and maintaining wealth through real estate. He says that for anyone to succeed in this business they must be able to seize opportunities as they arise. This means you must be financially prepared and well-informed on the subject. If you wait around trying to generate some cash to put a down-payment on a potential investment property, odds are it’s going to disappear before you can get your hands on it. Also, if you aren’t confident in your ability to maintain the property, or if you wait around forever trying to figure out if you're going to buy it or not, you will suffer the same fate. Having the ability to jump on a good deal means that you must know what’s on the market, and to do this requires dedication; you must be scouring the markets daily, and have connections throughout the real estate market for insider-type deals. Also, through time you will get a feel for the local market and the prices of the average property, which will allow you to spot deals much faster and more efficiently. There will be many other investors out there trying to spot deals just as you are, and it's your job to beat out the competition. As you begin your search for potential investment properties, you should try to narrow your search down to a certain type of investment deal. This allows you to become specialized in that area, and have a solid foundation that you can build off of. Later on in your career I absolutely recommend broadening your horizons and branching out to other areas of investment deals, but to start with, try to focus all your efforts towards one area of real estate. Duplexes and fourplexes can be very profitable and well worth your time if you play your cards right, especially for new investors like myself who are young and can take advantage of First-Time Home Buyers opportunities. These properties allow you a place to live while you begin your investment career and learn the ropes, while still acquiring a steady cash flow from the other residents. You can then turn this cash flow into savings for other investment properties or opportunities that could arise. Remember it's very important to be both financially and mentally prepared before you take your first major step into real-estate investing.
