So often we hear people say, “I want to be a real estate investor.” I am sure you have heard someone say it too – maybe even yourself. When asked why, the number-one reason we get is, “I’m tired of my corporate job; I want freedom.”
What most people don’t realize is that they are exchanging one job for another- but without any benefits, with long hours and inconsistent paydays. Now, with that said, I love being a real estate investor and am glad I made the leap. However, so often the students we coach aren’t realistic in their expectations of everything that is involved. So, I wanted to share five things to consider when becoming a real estate investor.
1. Have a plan. Know what you are trying to achieve by becoming a real estate investor: long-term wealth, job replacement, side money, or a combination of these. That will help you determine where to start.
2. Real estate investing is a business. All businesses need some sort of capital. If you have no money, then you need to invest time into your business in some sort of sweat equity. If you have no time and no money, it is not impossible, but very difficult to get any real traction.
3. Educate yourself. My husband and I spent lots of money (and still invest) in our education. We are consistently learning and growing. We network with other professionals and share ideas and information. If you’re new, be prepared to spend money (or time) learning.
4. Partner carefully. Real-estate investing lends itself well to teamwork. No one person can do this business by himself and make a great return. You need others to be successful, but know who you are dealing with. Protect yourself and your pocketbook by making sure everyone is clear on his/her role in the deal.
5. Realize it’s not easy! Just like with any new venture, it takes time and practice. Not every deal is a good deal. There are lots of ways to make money and lots of ways to lose money too. If you are expecting to hit a home run every time, then you may just get frustrated and give up.
Remember, if it was so easy, everyone would do it and the rewards wouldn’t be as great.
So, I hope this sets the proper expectation and that you will consider these things first, before you get started. Do you want some help with getting started? We can help. If you are in Atlanta – contact Mark Lackey at 404.886.8789. If outside Atlanta – you can get all the training you will ever need – sign up at www.MasteryCoachingWithTheLackeys.com. The best real estate coaching program with everything you need to get started.