What steps are involved in getting started in real estate?
There is no question that real estate is one of the best career paths, investment opportunities and methods to generate long-term wealth. Of course, going from 0-60 in real estate can be a big leap for many. This is especially true for those desiring to get in full time. So how can aspiring real estate investors, agents, and start-up founders get started in this industry? What can they do to make the transition into real estate easier and more productive?
Whether cautious pessimist, or overly bullish optimist, it’s worth having a plan and identifying the steps. The pace individuals decide to tackle this process at is entirely up to them. Some might take a year, others just days. If you are not sure of the path you wish to take, consider the following:
Get a vision. Clarify it. Document it. Own it. What is it that you hope to achieve in, and through real estate? Money, power, fame, freedom, the capacity to do more to help others? What will success, and the end result look like? Creating a vision, or a goal, will not only help you see the bigger picture, but also elude to what you need to to to get there.
Every hour spent learning in advance can save many hours and tens of thousands of dollars later. For many, it can make years of difference in progress and achieving the vision. Just a few wrong decisions can take some on a detour that ends up lasting years, or even decades. The importance of learning and real estate education really can’t be overstated. It’s make or break: it can make all the difference in financial ruin on your first deal, or never doing a deal at all, versus hitting six figures in just a few weeks. Learn your options, best practices, the technical side of how transactions work. The more you know the better prepared you will be.
Pick a Strategy
Choose which strategy or niche you will tackle first. You can expand endlessly later, but it is normally better to master one aspect of real estate investing before moving on to the next endeavor. For example; real estate investors might choose between focusing on wholesaling, fixing and flipping houses, rentals, turnkey investments, new construction, or investing in mortgage debt. Real estate agents might choose between rentals, sales, luxury homes, or bread and butter low income properties in certain neighborhoods. Regardless of your exit strategy, pick one and stick to it. Don’t consider moving out of the niche until you are comfortable and ready.
Take inventory so you know where you stand in relation to your goals. What do you have that will help? Where might you be lacking? What are your personal strengths, and weaknesses? List these out. Everyone has a different inventory – that’s okay. This is where you will find your personal advantages in the industry.
Where Can You Find Help?
After taking inventory, look for resources to make up where you are missing. Where can you learn more about the items you aren’t sure about? What hacks are there for putting together the parts you don’t have yet? Who can help fill in the blanks, or even do it for you? You certainly don’t have to do it all yourself. Can you benefit from a real estate partner or business coach or mentor, find partners, or just hire the help you need?
Get the Finances Right
It is definitely worth focusing in on finances. What have you got and what do you need? Can you get by with less? Where can you find more capital and credit if you really do need it, and what will you need to get it? Will you need a strong executive summary or pitch deck, or to improve your credit? Find out what it is you need and learn what you need to get it. However, be sure to look at all of your possibilities. There are several options available, many of which may not be a good fit. Your goal is to find the money that works best for your particular situation.
Formalize Your Plan
Take time to put it all together in some type of formal document. Consolidate the information, as to use it as a reference later on in your career. Even if you never plan to bring in a partner, get a business loan, or raise funding, a formalized business plan is critical as a guide and compass to success. Make sure to include a timeline for putting all of the steps into action.
Know what you need to do, and where you want to go. Start getting organized and laying the foundation and framework for your real estate success. This will probably involve incorporating or forming some type of legal entity, opening business bank accounts, registering internet domain names and social media handles. There is much more that warrants your attention, but the point is to get organized and understand what it is you need and when you need it.
Recruit & Spread the Word
When you are finally organized, it’s time to start recruiting the help you need (if you haven’t already). Put your team in place, even if this just means identify the best freelancers and outsourced workers to assist you and putting them on standby. Get the word out to everyone you know and come into contact with so that you can hit the ground running. Odds are: your first deals will come from your immediate sphere of influence.
Commit & Step Out
Now you are ready to rock. Mentally commit to sticking with it, working the plan, and launch. This should be the easy part. For some, it is where stalling is most likely to occur. If you don’t get started, you aren’t going to make it to your goals.