When I first started out on my real estate investing journey, I took the time to get educated in various aspects before proceeding with my first investment purchase. However, I knew that getting educated was only part of the process – at some point I would have to pull the trigger and actually purchase the property to meet my investing goals. Although this can be very daunting, and an expensive lesson should you make any mistakes, you cant be afraid of it. Here are some tips to fully prepare yourself before you start on your own real estate adventure.
Everybody has reasons for starting their real estate investing career – mine started because I thought it would be a great way to supplement my income. I never expected to evolve and learn what I have learned to date. I keep expanding my goals and hopefully this post will inspire you to keep expanding yours as well. I am now involved in residential, commercial and private lending for other investors, and with so many different ways to invest the overall goal is to not only grow my own passive income but to also enjoy the journey.
I love going to different meetup groups or getting out and meeting other investors – mostly to see what they are doing with their own portfolio’s and to learn about what path they took to achieve their goals. However, today I am more picky on which ones I go to and how much I spend to attend a meeting. Factor in parking and gas, it can be a very expensive night with little or no return. It can be advantageous to learn from others. Investors are a great group of people because they love to share their achievements and their struggles to get to where they are, so you get to learn for free. In the beginning, I took the time to meet with investors I wanted to emulate and am grateful for those individuals who took the time to share their experiences and knowledge with me.
I have also met so many would-be investors who have attended every course available (some that cost thousands of dollars), will go to every meetup or investment club, will speak to many investors and still not have the courage to pull the trigger and purchase that property – we commonly refer to this as analysis paralysis! I recently met such a person, who thought that he could purchase a few properties and retire from his job within 6 months – unfortunately a myth that is perpetuated by many of these courses that charge thousands of dollars. We finally got around to the topic of the many courses he had taken to date over the last 3 years – in total he had spent close to $60,000 and had still not purchased a property!
I asked him what was holding him back and he said he did not feel ready, and that he did not feel he had learned enough. I asked him what else he needed to know, and he couldn’t answer that. He said he was taking another $10,000 course the following week that should give him the information he needed to proceed. Just like we hear stories of businesses spending millions on unproductive meetings, this guy seemed to be going nowhere, and just as these meetings are costing businesses and ultimately holding them back, so were the courses for this gentleman! I always advocate spending time learning the subject before entering the market, but if you’re looking to make this a viable business it has to be sometime!
By reaching out to an experienced investor and asking them the questions you most want to know, it might just give you the confidence you need to push forward. I recently did that with a new investor and one month later after taking my advice and doing some research on two markets we focused on, she is ready to pull the trigger on her first property!
If you are a successful investor and you come across somebody like this, please do them a favour and break down the myths for them. Don’t be afraid to share your experience with somebody like this – it may result in their success as well as yours!