The last 3 steps to get started in Real Estate Investing

I mentioned last week how relevant this 20 year old book is (even though the cover itself screams “dated!”).  Something else I noticed though, is how the book reads differently to me this time, now that I’ve done a bunch of deals.  It’s like when you get older and all of a sudden you realize your parents were right all along (on some things at least).

Well I don’t want to hold you back from your investing journey any longer - let’s continue.

Step 4. Convert Suspects to Prospects

Suspects waste your time.  Prospects are worth your time.  Basically, learn to recognize real opportunity vs people who are pulling your leg.  Someone who is just curious about what you’d offer on their home is different from someone who wants to move in two weeks.  I’ll say from personal experience recognizing the difference between suspects/prospects is not always easy, because sometimes long-term persistence pays off.

Step 5. Buy Real Estate investments

When an opportunity shows up you have to move quickly to control the property.  Make an offer and get it under contract.  When you have a contract, you can do more due diligence and negotiate accordingly.  Your goal should be to create a win-win that also hits your investment criteria from #3.  This I think is where many people hit a speed bump.  It’s one thing to learn and analyze.  It’s another thing to actually take the plunge and make a move.  I’m still often nervous right before I make an investment - there can be a lot of unknowns.  But I do know that you just have to get as much info as you can, and make the best decision you can with what you have.

Step 6.  Gain Insight

After you buy a property, follow through on your plan.  Buy and sell, buy and improve and sell, or buy and hold.  Some deals will be bunts, some will be home runs, and you want to minimize your strikeouts.  I’m gonna straight quote Gary here:  “Success is the result of good judgment.  Good judgment is the result of experience.  Experience is the result of bad judgment. You'll make mistakes, but as long as you buy it right, all mistakes are survivable.  In the end, your experiences and the feedback you get from others will give you knowledge and insights that will help you create even better deals in the future. That's what you want - lots of experience and better and better deals!”

Thank you guys for listening along these last two weeks.  I love real estate for so many reasons - investing is just one of them.  But this side of it can be particularly rewarding, and I want as many of you (that want it) to go down the path with me.