No one gives new real estate investors enough credit.
It’s a tough gig. There’s so much to do, so much to learn, and there’s so much information to digest that it’s really no wonder that anyone sticks with this crazy business. Well, okay. It’s super worth it and super rewarding, so that’s probably why people keep doing it.
But that sure doesn’t make starting any easier! There are a thousand sources, guides and gurus trying to teach you about the hundreds of different ways to invest in real estate and it’s honestly overwhelming. It’s intimidating. It downright makes your head hurt.
It doesn’t matter if you’re a flipper, a turnkey real estate investor, a wholesaler, crowdfunder, if you’re into land or commercial real estate, or if you just really dig REITs. This is the best advice we can give to anyone who wants to invest in real estate. Period.
That’s why here, we’ve compiled five simple, universal pieces of advice for new real estate investors.
It’s all about a solid foundation and solid principles, and then you expand on them with more specific knowledge. If you can that solid foundation, it’s hard to go wrong.
1. Surround yourself with the right people.
For real estate investors, a network of support is crucial. You need people around you who not only understand what you’re going through, but people who will support you, help keep you accountable so that you continue to make progress, and people you can turn to and trust for solid advice. If you don’t know where to start, we highly recommend the online community BiggerPockets. Getting involved there is a great way to connect with investors and real estate professionals from all over the country!
More than that, try to seek out investors locally. Meet them, strike up friendships and see what happens. You want people who will be encouraging, honest, and supportive during your journey.
2. Develop a laser-sharp focus.
New investors have so much information to digest. Focus is essential. With so many options, so many different ways to invest, and so many projects you could tackle, you’ve got to stay on task. Otherwise, you can end up in over your head or too scattershot to be effective. Pick your niche. Stick to it and experiment sparingly. Stay on task and develop follow-through. It’s all exciting and you’re going to want to do everything at once—but focusing on your tasks one at a time and doing them well is what will serve you well.
3. Digest material from credible sources.
The Internet has provided us with a vast wealth of information. There’s so much out there! While access to information is great, we also have to be careful. Not all information is worth your time. There are people out there looking to dupe inexperienced investors with get-rich-quick schemes and seminars with guru personas and sensationalist books. If it sounds too good to be true, it probably is. Remember to verify the information you digest. Does that blogger have the results to backup their claims?
4. Turn knowledge into action.
Plenty of new investors have great ideas. Too bad a lot of those ideas never go anywhere. When you’re a new investor, remember, you’ve got to actually do what you set out to do. Don’t just talk. Don’t just read. Don’t just plan.
If you set out to do, don’t do it halfway, don’t just have intentions. Do. If you have to find accountability partners to get it done, do it. That knowledge just has to actually turn into action, or it’s a waste.
5. Above all, value excellence in everything.
For any real estate investor, your reputation is your absolute best asset. You have to protect it with your life. The best way to protect it is the put excellence above everything. It means going the extra mile. It means a refusal to cut corners. It means you don’t compromise safety or quality to save a few bucks. It means you put due diligence first. When you value excellence, you not only avoid problems, but you gain a reputation for doing things the right way. And what’s better than a good reputation?
We’ll tell you: it’s priceless.