Real estate investing can be a great way to build wealth, create passive income, and have a positive impact on other peoples’ lives, but there’s a lot to learn if you want to be successful. In this article we’ll provide a few tips to ensure you get started on the right foot.
Develop the Right Mindset
Real estate investing, like many things in life, requires a positive mindset to be successful. You have to believe it’s possible to create a better life for yourself through real estate investing, and you have to figure out a way to derive satisfaction from your real estate investing activities. Some investors find satisfaction in putting a roof over peoples’ heads; others find satisfaction in closing a deal or seeing a project through from start to finish; and others enjoy researching properties and analyzing deals. Whatever it is, you have to have a yearning to do it, and you have to be willing to push yourself beyond your comfort zone. If you ever have trouble staying motivated during the hard times, just think about the personal and financial freedom you can gain from becoming a successful real estate investor.
No matter where you are in your real estate investing journey, it’s important to set ambitious but realistic goals for yourself. Start by thinking about what you would do if you had sufficient time and money to live life on your own terms. How much money do you need to turn that dream into reality? $10,000 a month? $20,000 a month? $50,000 a month? Beyond your financial goals, what else do you want to achieve? Where do you want to live? How do you want to spend your time? What amazing places do you want to visit?
Now that you’re clear on your long term goals, start breaking them down into manageable chunks of time. Maybe you want to achieve all of this in ten years. If so, what can you do in the next five years to get halfway there? What can you do this year to move towards your five year goals? What can you do this month to move towards this year’s goals? And what can you do right now to move towards this month’s goal?
Be Willing to Learn
Knowledge is a great way to overcome fear. Think about it this way: if you’re thrown into a dinner party full of strangers and one of them starts talking about the movie you watched last night, you’re going to feel pretty comfortable chiming into the conversation. On the other hand, if quantum physics is the topic of conversation and you scraped in with a D+ in high school physics, you’ll probably be pretty uncomfortable contributing to the conversation. The same is true in real estate investing, or anything new for that matter. The more you read and learn about the subject, the more confident you’ll be when you start talking to others in the industry. There are any number of books and podcasts on the subject of real estate investing. We suggest dedicating 30 minutes a day to reading, and listening to a minimum of three podcasts a week.
Be Willing to Execute
It’s always good to be learning, but it’s never going to produce results unless you’re willing to execute. Plus, if you love learning, there’s no better way to learn than learning by doing. It will seem daunting at first, but once you’ve successfully acquired your first investment property, you’ll have a blue print to follow for your future deals. The more you execute, the closer you’ll get to living your dream life.
Build your Team
Having a good team can make your life as a real estate investor a lot easier, but your team isn’t going to come together overnight. To a certain extent, it will require trial and error. You’ll work well with some people but not with others. You can, however, streamline the process by knowing which team members to look for. Examples include:
Real estate agent. Some investors like to find deals for themselves, while others prefer to rely on a good investor-friendly real estate agent. If you work full time and don’t have time to be sending out mass mailers and scouting for leads, you be well advised to find a good real estate agent. If you need recommendations, consider joining a local real estate investors association and going to a couple of meetings.
Property manager. If you’re going to be buying and holding rental properties but you don’t want to deal with the headache of property management (or you simply don’t have time), then you should definitely look for a Fort Lauderdale property management company. A good property management company will make your life much easier.
Contractor. If you intend to buy properties in need of repair, a good contractor team is a must. Again, ask for recommendations at your local real estate investors association. Make sure to collect estimates from multiple contractors before settling on one.
Real Estate Accountant. Every real estate investor needs a good accountant. After all, the whole reason you’re doing this is to create wealth and achieve financial freedom. A good accountant can shortcut the process and make sure you’re doing everything by the books.
Ask any real estate investor and she will likely have her own tips for succeeding in the industry, but if you can master these five, you will be well on your way to a successful real estate investing career. Once you’re on your way, don’t hesitate to contact us with any questions or to inquire about our Fort Lauderdale property management services.