How to Get Started Investing in Real Estate
By, Maura McGraw
You are probably aware of the many benefits of investing in real estate, but getting your first property can seem overwhelming. There is no one “right” way to get started investing in real estate. People choose many different starting points, but the following 4 steps will help you get started building your real estate portfolio, regardless of which asset class you choose to focus on.
1 – Invest in Your Education
You do not need to spend thousands of dollars on a real estate course or get your real estate license to get started investing in real estate. Reading 3 books is a good way to begin your real estate education and give you enough knowledge to acquire your first property. I highly recommend the following 3 real estate books for beginners:
- Rich Dad Poor Dad, by Robert Kiyosaki
- Cashflow Quadrant, by Robert Kiyosaki
- Long-Distance Real Estate Investing, by David Greene
While having some baseline knowledge is important, do not let yourself get stuck on Step 1. Many people spend way too much time and money getting educated in the hopes that one day they will feel truly confident to begin investing. The reality is that no matter how many books you read or courses you take, most people never feel truly confident until they have purchased a few properties and have some experience under their belt. So, my advice would be to choose 3 books to read and then move on to the next step.
2 – Leverage Someone Else’s Experience
Find someone who knows what they’re doing to help you with your first purchase!
Purchasing property can be complex and nuanced, especially when you are new in the industry. So, I would highly advise finding a person or business that you trust to help you with purchasing your first property. This is how I acquired my first property and I do not regret it.
A few years ago, I knew that I needed to get started investing in real estate and at the time I was an Active Duty Marine with limited time and little experience. So, I used a trusted turnkey company called RP Capital to help me acquire my first investment property in a good cash-flowing market. This company held my hand through the whole process and helped me get into the game. Now, after several years of investing and building a team, our company helps a select number of people acquire properties in Alabama.
If you do not want to use a turnkey company, another great option is to partner with an experienced real estate investor on purchasing a property.
3 – Get Your First Property
No matter how you go about acquiring your first property, I advise you to set a goal date for your first acquisition and just get it done. Your first property does not need to be the most perfect, highest-returning property in the area. A LOT of the value in purchasing your first property is the learning experience. So, find a property that helps you meet your financial goals and go for it! Once you have your first property under your belt, building your portfolio gets MUCH easier.
4 – Continue to Learn & Grow Your Portfolio
After you purchase your first property, develop a plan to continue your education and grow your portfolio. Write down your goals and try to look at them daily. A very manageable goal for many people is to acquire one investment property per year. After 10 years, that is 10 properties! If you just read one real estate book per year and purchase one investment property per year, you will be amazed at your progress after only a few years.
COMPANY UPDATES
We have a great duplex under contract available for assignment to one of our buyers. You can check out the property details below and reach out to us if you are interested in adding this property to your portfolio.
9262 Agee Rd, Semmes, AL 36575
Area: 2,500 Sq Ft
Mix: 3 Beds | 2 Baths
Area: 2,500 Sq Ft
Mix: 3 Beds | 2 Baths
Click here for more information on this property
In closing, it is important to remember that investing in real estate is a LONG-term wealth-building strategy and takes consistent action over time. Your life will likely not change substantially after your first property purchase, but after a few years and a few more properties, you will undoubtedly see a big difference in your financial circumstances.
DID YOU KNOW……
We have a sister company called Freedom Ventures Property Management that provides high-quality residential property management in Birmingham, Mobile, and Baldwin County.
Our property management company grew out of a personal need for quality property management of our assets. Over the past two years, it has grown to manage over 425 units across Alabama and is its own independent company with an ever-growing team. We would love to help you if you are looking for good property management in Alabama.
Our property management company grew out of a personal need for quality property management of our assets. Over the past two years, it has grown to manage over 425 units across Alabama and is its own independent company with an ever-growing team. We would love to help you if you are looking for good property management in Alabama.
