Like many of you, I sat on the sidelines looking to become a real state investor. I was interested, drawn to the process, aware of the benefits, certain that this career would be a great way to help my community. On my way to work, I would drive by houses for sale in my neighborhood and think, “I can do that.”
In my spare time, I would read books, listen to podcasts while driving in my car, watch ‘how-to’ videos on YouTube, and talk to friends and co-workers. I knew what I wanted to do, but I just couldn’t get in the game.
Real estate investing is not an easy business. Housing markets, bank loans, home repairs, and intense competition are all good reasons to watch from the sidelines. Investing has its fair share of risks. I speak with people every day who for one reason or the other aren’t ready to get out there.
What keeps people from becoming a Real Estate Investor?
Below is a quick video I shot answering the question.
In the beginning, I asked myself often, “Why am I still on the sidelines and not in the game?” I had a list of reasons that I would repeat to myself. Maybe you’re familiar with this list:
- I don’t know enough about real estate investing.
- My friends and family think it’s a risky career.
- I’ve heard people often lose more money than they make.
- Our local housing market isn’t very good.
As the president of the Real Estate Investment Association (REIA) chapter in Austin, I often meet people who are one step away from getting into the game but are held back. They ask me for my story, for how I got to where I am, and for advice.
Today I want to share my advice with you on how to get into the game of real estate investing, even if you think you aren’t ready. What I learned years ago is that there is no perfect time to begin — you just have to take a leap of faith.
How do you recommend I become a real estate investor?
Maybe today is the day you’ve finally decided that you want to become a real estate investor. If so, good job! Making the decision is a real big challenge. While you are still on the bench, you’re watching the game closely, ready to get in there. This is an important time, so let me pass on some of the best advice I’ve learned.
Go local and stay local
It’s easy to spend your time online learning from different pros around the country. Sure, they have good advice, but they don’t usually have local advice. Local knowledge is absolutely key to being successful as a real estate investor. One of the things I tell new real estate investors is that investing is a local game. You need to learn your market, the rules about investing in your area, the key players nearby, and how local laws and ordinances affect your area. Get off the internet and into your community, your local neighborhoods. Become a local expert in the real estate around you.
Get out there and meet other real estate investors
Every week in communities around the country real estate investors meet to share ideas, make deals, and to talk about what’s new. I strongly recommend that you get out there and get in front of other real estate professionals. Even if you don’t know what to say, get out there and learn about who they are and where they’re from. Along the way, you’ll pick up pieces of information that will help move you toward becoming a real estate investor. Here are a few low-risk ways to meet other professionals:
- Attend a real estate meetup in your area
There are many ways to meet other professionals in your area. Here in Austin, we have the REIA of Austin, which you can visit as a guest one time before paying dues. You can also attend the Austin Real Estate Networking and Investing Club.
- Go to a real estate seminar
It seems like every month I hear about a real estate investing seminar in my area. If you’re more comfortable at seminars, get out there and connect with the professionals who attend.
- Call a real estate investment company in your area (especially If you have a lead or deal)
If you already have a lead or deal, contacting a real estate investing company is a great place to start. Your lead or deal could be very valuable and could lead to a mutually profitable partnership.
My most important advice: Find a local pro to guide you
This is my most important piece of advice: work with someone who has already walked the path you want to walk. Find a local pro you admire and reach out to them.
I know when I was starting out I was intimidated with what I didn’t know. Everybody starts off as a beginner. The quickest way to get off the sidelines is to get out there and start learning. Finding a pro who will guide you can supercharge your learning. Reach out and invite them out for coffee — just 30 minutes of their time. Sure, you might hear that some are busy, but eventually, someone will take you up on the offer. Why? Well, it’s beneficial for them as well. You might have some information to share now or in the future. You’re part of a network. And especially if you become successful, the relationship that you two form could become very beneficial.
If you are looking for a more formal way to connect with professionals, try contacting a real estate investment company like ours. We offer a coaching and mentoring program that helps beginners get right into the game at the speed they need. Their expertise will help you learn to analyze deals, work through deals correctly, and you will be able to learn from their mistakes. Just make sure you shop around to find the right company for the right price.
Get in the game
I can’t say this enough: Get off the sidelines and become a real estate investor! Your fears and worries will melt away as you connect with others, learn more about your local market, and speak with pros who, like you, started off on the benches waiting for their turn. I promise you, you’ll be glad you did.
