They were just interested in buying a new home. A real estate group in the group stopped listing open houses, and realtors have recently. 5. A real
What are the steps involved in real estate investing for the first time?
I was in your same boat a little more than a year ago when I was still in college. Now I have started my own LLC doing real estate part time while working full time in an engineering day job. You do not need a lot of cash to start in real estate investing, but you do need to find a way to accumulate capital in order to do deals such as buy fix and flip or buy and hold. There are so many ways to start, but I’ll talk about what I’ve gone through.
First you need to ask yourself do you have the ambition and the drive to consistently do lots of work without earning a penny in the beginning because essentially, you are starting a business. You will be networking / marketing / studying at night when others are resting, and calling people / looking at properties, etc in weekends. Essentially, you want to ask yourself “What is your ultimate goal, and can real estate investing bring you that goal?” Then, it will be worthwhile to dive into real estate.
If you want to start a real estate investing business, the absolute first step is to educate yourself tremendously. Need to know about the fundamentals of real estate, what PITI means, what cap rate is, what is wholesaling, basic real estate laws, the process of closing a deal, what are the different niches in real estate, etc. However, don’t be paralyzed on information overload because most knowledge will eventually come by actually doing the deals. Don’t over pay for education from those so called “gurus” because it’s information that can be learned from different sources. Although that’s how I got started, I don’t recommend paying too much for education. I did not regret it, however, because after lots of money and time invested, I have to succeed no matter what.
There are a couple of ways to start accumulating capital in real estate without much money upfront: get licensed and earn commissions, build a referral network and earn referral fees when you refer profitable deals to investors who close the transactions, wholesaling.
The benefit of getting a license is that you can be part of a brokerage who pays a good amount for referral fees. You don’t have much time or money, but you can refer home owners, investors who want to sell, or buyers to another agent in the brokerage where if they close the deal, you get 1/4 or 1/5 of their commission without doing much work.
For me, what contributed the most amount of success and accelerated my real estate business progress is getting a mentor who is already really successful in the industry and willing to take you under their wings. Their connections is now your connections, and their knowledge and experiences are soon to be yours too. A good mentor would be the one who does not want to make money off of you, but with you, and who is accessible and willing to teach you. As a trade off to them, you need to show that you are a a worthy student by diligently implementing everything they said and show that you are worth their time. You want to be a successful student in order for them to continue to want to build you up. Every successful people / investor has a mentor behind them.
Eventually, when you start accumulating capital, you can now start to get a business website to brand yourself and your business, a business entity for tax deductions, etc.
If I were you (which was me a year ago), I would go to a few seminars (remember don’t get sucked in by the gurus who are selling their courses), join some real estate clubs to check it out, go to meet up events of investors. Remember, real estate business is people business. Educate yourself and try to get licensed (you can invest and be a salesperson earning commission legally at the same time). Most importantly, try to find a mentor in the industry who is very successful in things you want to do in real estate investing. It will save you a tremendous amount of time, money, and failures.
Get a full time job first right out of college because if you don’t have money or income to sustain your basic living needs, don’t even think about start a business. Once you get a decent income, do real estate on the side (night time and weekends), save up part of your salary for investing in your own business and/or your near future investment property. Since you are still in college, just suck in as much knowledge about real estate as you can, and know as many people who are active in the real estate world as you can.
I know exactly what stage you are at, and you’ll learn much more later on when you are actually in a deal.
Best of luck to you and wish you lifelong prosperity and good health.