Buying a house is one of the biggest and scariest purchases most people will ever make. For a new investor, buying a house can be ten times scarier! There are obvious reasons for the anxiety, like the rehab cost being more than anticipated, the after repair value being less than anticipated, and the list goes on. Here are three things a new investor should do before they begin making offers:
1. Know your Market!
You have to know which strategies to implement in your territory. Not every real estate strategy is profitable in every area. There are areas where fix & flips work really well and wholesaling is out of the question. There are areas where buy and hold is the thing to do and others where seller financing works best.
Not knowing the difference can cost you time & money, which is something no investor can afford, especially a new investor. Connect with your local REIA (Real Estate Investor Association) and any other investor groups to see what’s working for others in the area you want to invest.
And remember, even as a new investor, you don’t have to invest where you live. I’ll admit, it does help at first, but I’ve bought homes in eleven states from my office in Lake Wylie, SC. And I have students in over twenty countries that invest in the USA from halfway across the planet.
2. Every New Investor Needs a Team!
Even if you may feel that you’re pretty good at doing your own due diligence, it never hurts to get the opinion of other professionals in the area. Having relationships with local agents, contractors & appraisers is extremely valuable. Being able to call them up to run deals by them is priceless. If don’t have some of these type of professionals on speed dial then find some asap!
One thing new investors fail to capitalize on, is that real estate investing is all about networking. The more people you have out there that know about who you are and what you do, the more potential deals will come your way. You will never stop growing your team, you will always want new realtors and investors that have access to properties or notes you want.
3. Find a Mentor
[blockquote align=”left” author=”Tony Robbins”]If you want to be successful, find someone who has achieved the results you want and copy what they do and you’ll achieve the same results.[/blockquote]
Every new investor has questions, and they tend to go from book to course to seminar, and all they end up with are more questions. Having someone in your corner can be powerful, and can shorten the learning curve, giving a new investor the confidence they need to close deals more quickly.
Where do you find a mentor? Well, yes, I do offer real estate mentoring, but you don’t have to work with me. You need to find someone you know, like and trust and get as close to them as possible. They can be a business partner, a friend who has been in the business a while, someone from your local REIA, or yes, I do know a guy.
There is really no way to completely eliminate all the risk to real estate investing, but these are some tips to keep them to a minimum!
If you would like to find out more about how you can work with my and my team of investors in Lake Wylie, SC, I invite you to check out Larry’s Inner Circle.
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Take the time today to kick start your real estate business.