Beginning real estate investing can be both exciting and frightening as you take your first steps forward and break out of your comfort zone. Get a fast start and a solid foundation with the right corporate structure, a professional team, and automated systems. Even the newest investors will gain the confidence to close the deal.
Knowledge is your key. Get the best return on your money, expand your education and invest with confidence. Develop your talents as a problem-solver and business strategist because the most valuable asset your investment business has is You. Get as much training as possible before you start and always continue to update because more training equals fewer mistakes, less risk, and tremendous success.
Set yourself up for success. When beginning real estate investing, it's important to adapt your mindset and fully understand that each action you take needs to help generate income and build your investment business.
There's a lot of information here. To keep each step short, we summarized and included links to detailed information. It'll take more than a cup of coffee to get you through all of it, so order a pizza and dig in.
Start Like A Pro, don't take shortcuts.
Set your investment business up the right way with a strong foundation, goals, and an action plan for the next year.
Create the proper legal structure for maximum asset protection, privacy, and tax advantages saving thousands of dollars and avoiding unnecessary worry and stress.
Choose Your Investment and Exit Strategies. To avoid mistakes when beginning real estate investing, select strategies based on your experience level, financial goals, location, and niche.
Build a team that invests in your success. Leverage other people's skills (OPS). Surround yourself with investor-friendly professionals. It keeps your overhead and taxes low. And it's mutually beneficial for these professionals to provide excellent service because, for them, it's a great way to make money while building their business and yours. Plus they only get paid when a transaction occurs, so they are always eager to close your deals.
How Do I Start Investing in Real Estate With Little Money?
Secure Funding. There are many other funding sources besides traditional bank financing. Typically, investors avoid the Banks and instead use creative structuring and OPM to fund their deals. It's crucial to learn how not to use your own money when beginning real estate investing.
Automate with Resources & Systems. Integrate starting day 1, use technology, resources, and proven systems to effectively and efficiently operate your business. Spend your time buying and selling properties instead of slaving behind the desk with daily office chores.
Marketing That Gets Leads And Builds Your Business. It's all about getting motivated seller leads. Crank up your lead generation system with a website, direct mail, and online marketing techniques that will showcase you as an expert in the local area.
Value Position. Create a slogan that proudly tells what your company offers: Sell your house and keep peace of mind. Eliminate headaches, Skip the open houses, and showings. No inspections, sell as-is. Receive a cash offer on your home and close in 5-12 days. See the video on our blog from Kathy McAfee about 10 second elevator pitch.
It's essential to get your investment business online and build a reputation. Gain instant credibility with an interactive website, and it's your 24-hour sales staff. Include branding that will get your investment company noticed and remembered, create instant authority status, and have everyone wanting to do business with you.
Handle questions and objections. Negotiate sales, present offers, and provide solutions that match the homeowner's dilemma. That's how to get the contract signed.
The basic sales flow for buying real estate is Find, Analyze, Fund, Assign, or Flip. As you gain experience, add new strategies and fine focus your target market.
Find leads. Contact the owner, get an appointment to see the property, prep for an appointment.
Analyze the property. Get comps and local information. Walk property or virtually view the property on zoom with the owner so you can ask questions.
Only use recent information, no more than 45 days old. Real estate markets have been hot with continual growth and prices are climbing.
Estimate repairs without a contractor. Create material lists and upload them to your Home Depot account.
Make an offer
in person, sign the contract with the owner or virtually sign documents
online. If they do not sign, follow up until they sell.
Close the deal. Decide your exit strategy; will it be a fix and flip? Get funds lined up after viewing the property. Wholesale it to another investor? Find your cash buyers for that area, contact them early on and have them waiting for you to assign the contract. Fix and rent? Get financing lined up, and have an online tenant/landlord portal set up.
After you have completed a few closings, create a sales book to showcase the properties you've sold and proudly present it whenever given a chance, show it off like a proud granny sharing pics of her grand babies. It'll help you build credibility with retail clients and investors. Plus, it'll act as a reminder of the enlightening opportunities that you encountered with each property.
Connect with Other Investors. Use social media marketing to sell your deals, promote your properties, and connect with other investors.
Join a few online platforms and build professional relationships. Networking is free. Find communities of local investors, contractors, and professionals. We especially like Linkedin and Facebook. Locate the leader in your market and start to do business like them.
Knowing people in the industry creates channels that lead to possible business partners, personal advisors, and mentors. Develop professional relationships and get a free business mentor with SCORE, the local Chamber of Commerce, Better Business Bureau, and Habitat for Humanity. It's through these connections that you'll have the opportunity to give back to your community and build a solid reputation.
Ask questions. Here's a list of real estate FAQs
Be flexible. Continually monitor market trends for your area, update software, strategies, and people.
Real estate quickly fluctuates. Today's investor needs strategies and systems that respond quickly to local market opportunities. You'll get more deals closed while staying a step ahead of everyone else.
With business systems, strategies, and people in place, you'll have no fear when beginning real estate investing. You'll gain the confidence to move forward, advance to go, and get deals closed.