Real estate investing can be an excellent way to create a regular source of diverse monthly income. In this blog, we will discuss the first steps, educational resources, ways to get started, finding mentorship, working with a realtor who is in the know, and different types of real estate investing for everyday people.
Top 3 Accessible Real Estate Investing Types for Beginners
- Single-Family Homes: Investing in single-family homes is one of the most common and accessible types of real estate investment strategies for beginners. They are typically more affordable and easier to manage compared to multi-family properties.
- Turnkey Rental Properties: A turnkey rental property is a fully renovated and rent-ready property that can be purchased and immediately rented out to tenants. This type of investment is suitable for beginners as it requires minimal effort to start generating income.
- Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-producing real estate. Investing in REITs allows beginners to invest in real estate without the hassle of directly owning and managing properties. REITs can be bought and sold like stocks, making them an accessible option for everyday investors.
To get started in real estate investing, it’s essential to educate yourself. Here are some recommended books, podcasts, and online courses:
- The Book on Rental Property Investing – “The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing” by Brandon Turner is a comprehensive guide that offers practical and exciting strategies for real estate investors. With nearly 400 pages of in-depth advice, this book covers various aspects of rental property investing, from finding and financing deals to managing properties and building wealth.
- How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started – “How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started” by Joshua Dorkin and Brandon Turner is a book that aims to help beginners in real estate investing. It covers frequently asked questions, setting up finances to invest, finding deals, financing deals, exit strategies, and more. The book is designed to provide a solid foundation for those who want to achieve financial freedom through real estate investing.
- The Millionaire Real Estate Investor – “The Millionaire Real Estate Investor” by Gary Keller is a book that reveals the proven strategies of over 100 millionaire investors from all walks of life. Written in a straightforward, easy-to-read style, this book covers the fundamental truths and models that drive financial wealth in real estate investing. It includes topics such as developing the mindset of a millionaire investor, identifying great real estate investment opportunities, and building a successful real estate investment team.
- BiggerPockets The Real Estate Podcast – BiggerPockets The Real Estate Podcast is a popular podcast hosted by David Greene and Rob Abasolo. The podcast features interviews with real estate investors and entrepreneurs, sharing their successes, failures, and hard-earned lessons. Through in-depth conversations, 1-on-1 listener coaching calls, and news analysis, the podcast provides a breakdown of real strategies that work for different niches and experience levels in real estate investing. The podcast is released every Tuesday, Thursday, and Sunday.
- Harvard DCE’s Real Estate Investment Courses
- Harvard DCE’s Real Estate Investment Graduate Certificate program offers hands-on experience in creating financial models, analyzing cash flows, determining values, and measuring economic returns of real estate investments. The program provides insight on various investment opportunities, understanding of investment capital through debt and equity partnership structures, and knowledge of investment strategy, decision-making, risk mitigation, and enterprise management
- Another course, “Real Estate Investments: Assets, Markets, and Current Trends,” focuses on the fundamentals and practicalities of making successful real estate investments, from identifying quality assets to raising capital.
Finding a mentor for someone looking to get into real estate investment can be a crucial step in ensuring success in the industry. A mentor can provide valuable guidance, advice, and connections to help you navigate the world of real estate investing. Here are some tips and strategies to find the right mentor for you:
- Identify the traits of a good mentor: Look for someone with a track record of success, willingness to teach, leadership experience, and who is a real estate investor themselves
They should be a good listener, focused on providing instructions rather than just praises, and hold you accountable for your progress.
- Attend local networking events: Participating in local networking events, workshops, or seminars related to real estate investing can help you meet potential mentors. It’s not necessary to find a mentor who is significantly ahead of you; someone just a few steps ahead can be more accessible and practical.
- Consider paid mentorship programs: Some mentorship programs require payment, while others may require more time investment. Assess your needs and preferences to determine the best option for you.
- Ask for referrals: Reach out to your friends, family, or professional network to see if they know any experienced real estate investors who could be potential mentors.
- Research online: Look for real estate investors in your area through online searches and forums. Reach out to them through their websites and ask questions to gauge their suitability as a mentor.
- Verify their experience and reliability: Ask potential mentors for referrals and conduct background checks to ensure they have the necessary experience and credibility.
- Establish a strong mentor-mentee relationship: A successful mentorship is built on trust, communication, and mutual respect. Be open to learning from your mentor and maintain a positive attitude throughout the process.
- Consider investing with your mentor: If you have the financial resources, investing with your mentor can be an excellent way to learn from them while also benefiting from their expertise.
By following these tips and strategies, you can find a real estate investment mentor who can guide you on your journey to success in the industry. Remember that finding the right mentor is about understanding your needs and goals and selecting someone who can help you achieve them.
Working with a Realtor
Working with a realtor who is knowledgeable about real estate investing can be beneficial. To find an investor-friendly realtor, consider joining a local real estate investor group or attending networking events.
Benefits of Working with a Realtor
- Better Price Negotiation: Realtors have the expertise to determine if a property is priced well, too high, or too low for the neighborhood. They can help you get the most for your budget and ensure your purchase price is a great investment.
- Access to Off-Market Properties: Investor-friendly realtors may have access to off-market properties, giving you an advantage in finding potential investment opportunities.
- Local Market Knowledge: Realtors have extensive knowledge of the local housing market, which can be invaluable when making investment decisions.
- Conducting Property Analysis: Realtors can help you conduct your own analysis of potential investment properties, ensuring you make informed decisions.
Becoming a real estate investor is an exciting and rewarding journey. By focusing on accessible investment types, educating yourself through various resources, finding mentorship, and working with a knowledgeable realtor, you can start building your real estate investment portfolio and achieve financial success.