So you’ve made the decision that you want to be a real estate investor?
Lots have and lots have done absolutely nothing after coming to that conclusion. The few that took action likely stalled the process out and delayed it way too long before actually getting going on their first deal.
I know I did.
So why is it so hard to actually get going in real estate?
I think it’s a combination of a few things; no knowledge, no connections, no money, and no instant gratification. The fact is, its not easy and it takes work. If you want easy this likely isn’t your cup of tea. You’ll have to put in work to get the results. Be prepared to fail and learn lessons the hard way. In this article I’ll map out how I think you have the best shot at getting going in real estate and map out a plan for you.
If you execute this plan, you will be well on your way.
1. Starting Out
There is more information than you could consume in a lifetime online. I recommend getting a beginner’s book on investing and start learning some high level strategy from others that invest in real estate. Go on forums such as Bigger Pockets or FlipNerd and read an hour a day.
Doing this for a month will get you a base knowledge. There are many ways to invest and different types work for different people. There’s wholesaling, fix and flip, commercial, multi family, development, land entitlement, and many more niches.
Assuming you have little or no money to start with, your best thing to learn is to find deals. You’ll need to do some marketing. This will be part of your strategy. You can do things like cold calling, put sticky notes on doors, door knock, networking, put out signs, make MLS offers, or scour the internet for potential deals.
IF you can find a deal, you can find yourself in a great position to make some cash by wholesaling or partnering with someone more experienced to guide you along.
After you’ve got your base knowledge and a direction to run, its time to create your strategy, make some goals, and then implement. You need a plan. Sit down, spend a few hours, and write out your exact plan.
- What asset class with you invest in?
- How many doors will you knock on this week?
- What’s the number of calls you’ll make?
- What networking events will you attend?
- How many offers will you make?
Set some numbers to hit. You wont feel like you’re getting anywhere at first, but this will compound. If you keep at it, you WILL get a deal and find your way. You simply need a plan and to take action on your plan daily.
This plan will likely change. You may have a plan and grow out of it only weeks later. That’s ok, keep editing it and making a new one as you go.
If you’re not getting the results you want you may have to change your plan and come up with some new strategies.
Make sure you give it time, however. If you change things too often, you won’t ever see results. Frequently looking at your plan and reminding yourself of what you are setting out to accomplish will help you stay on track.
After you figured out your strategy and have made a plan to execute its time to get to work implementing it. Marketing is the lifeblood of getting deals. Make a step-by-step implementation plan to execute your marketing of choice and start chipping away day-by-day carrying out your plan!
The next part of your strategy to implement should be networking.
Get out there and surround yourself with others doing the same thing. This will accelerate you much faster by being in a group of people who are doing or trying to do the same thing. You will gain knowledge from them and start to build your network in your local area. You can do this by searching the forums I mentioned for people in your area and reaching out to them, by going to networking events, or by joining an investor group.
You’ve probably heard the saying, your network is your net worth. Keep growing it and meeting people. Doors will open as you elevate your network and you will find a tribe to grow with.
Another great way to stay on track with the plan you’ve implemented is to track KPIs (key performance indicators). These are your goals metrics. Track as much as possible. Set goals and try to hit them.
For example, “I will make 50 calls a week to houses that I found driving for dollars and out of those 50 calls I will make 5 offers”. This is a sure way to find yourself in a deal if you stay at it. Keep at it and those efforts will get you where you want to go. Be relentless in your pursuit of your goals and strategy and track it. This will help you to see what’s working and what’s not as well.
The last step to the equation is to scale your efforts. Once you starting finding your way and getting some deals under your belt, you can enlist others to assist you. This will take time, as scaling takes money.
Figure out what you are good at and like doing and what you dislike doing. Bring in people that are better at those things than you and you will start to see growth.
For me at my company, LVN Real Estate, the first thing I outsourced was sales. I knew there were others who were better than it at me. While I think I’m pretty good at it, I couldn’t focus on the growth of the company if I was talking with sellers every day. By bringing in an acquisitions manager, I was able to focus my energy on marketing and business building efforts to keep my salesperson busy and bringing in money for the company.
My next hire was a project manager.
Same thing as the sales role, I couldn’t spend my day on job sites managing contractors if I wanted to continue growth and buy more houses in Denver. By outsourcing one job at a time, scale begins to happen and growth accelerates. You will know when the time is right as you go.
This should be the ultimate goal if you want to grow your real estate business without doing every part of the business yourself.
If you are strategic and execute on the plan you make you will start to see growth.
The key is consistency.
Be consistent with your day to day action and I can guarantee you that you will become an active real estate investor. In my opinion, success comes with time, consistency, education, networking and determination. Be determined to achieve your goals and don’t let up and you will get where you want to be soon enough!