Want to Start Investing in Real Estate? Here Are 3 Tips to Prepare You for the Journey
There’s no one way to invest in real estate, which is equally a blessing and a curse. It’s like walking down the cereal aisle at the grocery store, there’s something for everyone.
But if you don’t walk in knowing what you already like, what works for you and your family, it can feel debilitating trying to choose the right box.
If you’re thinking about investing in real estate, but you’re not sure where to start, here are 3 steps to prepare before diving in head first.
1. Understand your intentions
Why do you want to invest in real estate? What are you hoping to achieve?
Understanding your personal goals will allow you to make a plan of what kind of investing will work for you specifically.
One of my business mentors likes to say “the worst thing you can do is lie to yourself.” So be honest with yourself here. Really think through what you want, and why you want it. I know house flipping looks pretty glamorous on HGTV, but speaking from experience, it’s not for everyone.
Want some more help with this? Take my quiz on what kind of investor you are. It’s not the end all be all by any means, but it will help you start asking yourself the right questions.
2. Know your numbers and create a budget
Once you know your goals it’s important to dive into the numbers.
How much money do you have access to? Are you setting aside a specific amount of money each month already? Or do you need to start? If you don’t have the capital you need, who can you partner with, or how can you get creative?
Maybe it’s time to create a budget, if you need some guidance, sign up for my budget bootcamp, where I walk through four easy steps to create a budget and feel ready to start saving for your next investment.
It’s always smart to talk with a few lenders first to get a baseline of where you’re at currently. What would you qualify for right now? Or, if you don’t qualify yet, what do you need to do to get to that point (ie. work on your credit, save up a down payment, partner with someone, etc.)
3. Be patient, yet ready to act
Once you are clear on your intentions (what kinds of deals would work best for you) and you have a handle on the money (budget, financing or partnering up), analyze as many deals as you can and be patient for the one that meets your goals and aligns with your budget.
I’ve personally analyzed dozens of deals before landing on one that I actually want to pursue. It’s important to keep that in mind, say every 20th deal you look at you find one that lights you up, it solidifies how important it is to be patient and keep analyzing. This process is so beneficial no matter the outcome, the more deals you analyze, the more you learn about the process, the more you key in on what you’re looking for, it’s a key part of becoming a successful investor.
Another key to success in your real estate investing journey is working with the right real estate agent. Like all professions, there are agents with different strengths and weaknesses. Seek out the agents that specifically understand real estate from the investing perspective.
If you’re in the Black Hills, I’d love to help. If you’re somewhere else, I can also help. I’ve done my own research to find agents in other areas for friends, family and clients, and I’d be happy to help you no matter what market you’re in!
I’m Emily and in 2018 I left my corporate engineering job to jump into entrepreneurship with both feet. It was a winding road with lots of pivots that allowed me to realize my ultimate goal: to build freedom in my life through empowered investing and aligned partnerships.
I want to help you find that same freedom.
Whether it’s buying your first home and analyzing the investment component of your purchase, or it’s saving up to buy your first investment property, I want to cheer you on, share my experience, and encourage more people, like you, to build freedom in their lives through empowered investing.
If you’d like support in any of these areas, send me a note and we’ll continue the conversation!
