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Getting
Started In Real Estate Investing
I’m often asked “What is the best way for getting started
in real estate investing?” The answer is simple, you must
take action and the first place to start is by increasing your
knowledge about real estate investing.
The next challenge is where do you find the right real estate
investing advice? Often the advice found in books and courses
for the beginning real estate investor talk about making sure
your credit report is good, putting a real estate investing team
together, thinking small in the beginning, and putting down
20-25% for a down payment. This is a bunch of BS.
Here’s some real estate investing advice you can take
to the bank as a beginner. You don’t need cash, credit, or a
‘real estate investing team’ to get started as a real estate
investor! What you need is the right knowledge that can teach
you how to buy properties without using your own money, how to
take over existing debt, how to use other people’s cash to fund
your deals, and how to buy and sell properties in the same day
(it’s called
wholesaling).
If you’re just beginning your real estate investing
you may find it hard to believe that it is really possible to
buy and sell property without cash or credit. So let me give
you some real estate investing advice that will help you go from
a beginning real estate investor to an experienced real estate
investor.
1.
Choose your mentors wisely. As a
beginning real estate investor it is critical for your
investing success that you seek advice from successful investors
that have actually “been there and done that!” For instance
Donald Trump is often touted as one of the most successful real
estate investors and you could learn a lot about becoming
successful from him but what could he teach you about getting
started as a real estate investor? Not much unless you are
doing the multi million dollar deals and have the money and
partners to back it.
When looking for real estate investing advice make sure
the person is an active investor. Would you want to get advice
from somebody that has not been buying and selling for ten
years? Would they know how to use the internet,
www.craigslist.com,
www.zillow.com and other online resources that make real
estate investing much easier today then it was 5 or 10 years
ago?
2.
Start with Single Family Homes.
Real estate investing can include everything from single family
homes to multi-million dollar developments. The best place to
start for the beginning real estate investor is with single
family homes. Why? Simple supply and demand. Whether we are
in good times or bad people always need a roof over their head.
There is an abundance of opportunity in both buying and selling
residential homes which makes this investing in houses the
safest area to begin.
3.
Learn how to buy
wholesale. Early in my real estate investing career I
was given this advice “You make money in real estate when you
buy and realize the profits when you sell!” Learning how to buy
at discounted prices is critical to your success and gives you a
number of exit strategies.
For beginning real estate investors wholesaling are where you
can make money quickly without having to use your cash or
credit. A quick example. Let’s say you find a house worth
$200,000 and the seller is willing to sell the house to you for
$150,000 cash if you can close quickly. You can pass this deal
onto another investor for $160,000 and you just make $10,000
without using your own money. It happens all the time!
We started this article by asking the question “What is the
best way for getting started in real estate investing?” Now I’d
like to give you the short and sweet answer. Read the book “Real
Estate Magic 101 – How To Get Rich In Real Estate Even If You
Are Dead Broke!” There is no better resource for the
beginning real estate investor. I personally guarantee it! | 
