For some time now, I’ve been receiving questions from folks about how to get started in Real Estate. After some long thought and having the discussion over and over it’s clear that there are really only three things needed to get started in Real Estate Investing. The first one is clearly MONEY. The second is time; you can’t really get into investing if there’s no time for it. Last, but not least, is knowledge. The more knowledge, the less f*ck ups. F*cks up cost a lot of money. Trust me, I know. Read below to see the three skills you need to get started with REI.
The best investment on Earth is Earth.
#1 – Money
Cue “For the Love of Money” by The O’Jays*. So we all know real estate costs money but the cool thing is that it doesn’t have to be YOUR money! I’m not talking about going out and getting it the ski mask way, I’m referring to OPM, also known as, Other People’s Money. Typically, a person, hard money, or institutional lender will fund 100% of an investor’s project. Usually these circumstances are based off of either experience, having served in the military, or trusted relationship.
# 2 – Time
Some folks already have too much on their plate and if you’re that person then real estate isn’t for you! JUST KIDDING! That’s what a partnership is for – individuals coming together to pool resources. Whether it’s just you and one other, they may have the money, while you have the time and knowledge; so you both decide to split profits or maybe they just want interest on the money borrowed. Two great books on this are “The One Thing” by Gary Keller; Miracle Morning – El Halrod.
# 3 – Knowledge
Remember when I mentioned costly mistakes? Well, a lack of knowledge can definitely lead you down that dirty road, or end up in a situation and lose your shirt. Do yourself a favor download the BiggerPockets Podcast or go to their YouTube. Listen to an episode daily if you’re really serious. Pick up these books: The Millionaire Real Estate Investor, The Book On Flipping Houses, Landlording on Auto-Pilot.
And there you have it! The nuts and bolts of getting started in real estate. Also if you want my advice, having and keeping a W-2 job helps in financing.