Becoming a full time real estate investor can be challenging. If not done properly, it is rarely achieved. We must be able to create deals that involve both conventional and non-conventional ways of doing this business. By this I mean, sometimes we are putting our own money into a deal, but we are also doing deals using zero of our own money with our focus ideally on having zero liability in every real estate deal.
Before even getting to step one, the biggest mistake I have seen is over zealous people who have decided to change their careers to become a full time investors who quit their jobs to dedicate all their time to the practice. The admirable idea of burning your bridges to ensure or "force" success can actually hamper your efforts in the beginning as you are not only cutting off your financial means, but also your mortgage qualification capability. It would make more sense to begin as an employed person and only when your annual income from your real estate business is rivaling your income from your job, then perhaps it is time to make the jump.
The steps to full time real estate investing can be small but if calculated properly, can be significant and effective. Each step should be thought out well as to make the most of your time and resources. You must create realistic goals which includes a dollar amount, the types of property and exit strategies to create the desired dollar amount which includes a realistic time line.
To find their first property, many novice investors will go and talk to a realtor friend who in turn will often supply them with a number of MLS properties. The sad thing is, a lot of realtors, even those who state their investor credentials turn out to be relatively uninformed as to what a good deal actually is. The necessary property analysis (which I expect from a good realtor) in terms of monthly cash flow, estimated flip or renovation profits are not done or are ฝากขายทาวน์เฮ้าส์ stated as "potential income" (the worst words in real estate investing) and as a result, the novice investor has little to go on other than speculation. (which is the 2nd worst word in the real estate investor handbook). Often, realtors are not investors themselves and can be unsophisticated in terms of their investment knowledge. The problem is, the novice investor takes the Realtor's advice as gospel and often ends up buying a retail deal.
A scenario which happens all too often to the unsuspecting investor is they buy their first investment property through their trusty realtor and for some reason the property doesn't work out as promised. Usually the situation reflects negative cash flow due to vacancies, difficult tenants, higher than projected repairs or any number of discouraging results. This can be very, very expensive for the investor and ends up being so discouraging that the investor gets rid of the property and wants nothing more to do with real estate.
My suggestion to the novice real estate investor is to first get some excellent training to open your mind up to both the conventional and non-conventional ways of participating in the real estate business. It is a great and rewarding business to be involved in. It can have very little risk if you have educated yourself.
So, how to get started?
Get yourself into a real estate networking club, read and get some training or coaching which provides education, financing and deal opportunities.
To make real estate investing your full or part time business, you must have all of the tools available to you in order to succeed.
To your success!
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