Ask almost any successful person about the quickest, most efficient ways to build wealth and they’ll point you to real estate. Chances are, you know this and have thought about investing in real estate in the past – but something is holding you back.
If you’ve always wanted to invest in real estate but have never given it a try, you’re probably paralyzed by fear. You’re worried about putting that much money on the line, aren’t sure you’re ready for the responsibilities that come with being a landlord, and are scared you’ll never find the perfect deal.
“Expectation is the real downfall of most investors,” one expert believes. “If you are looking to invest in real estate, waiting for the perfect deal will never ever happen for you. The investment you are hoping for is not going to come knocking on your door.”
Once you recognize that there’s no such thing as a perfect deal, you’ll feel the freedom to get to work. And at this point, there’s only one thing standing in your way: education.
If you want to own real estate and build wealth, you need to educate yourself on the ins and outs of the process so that you eliminate unnecessary risk and maximize your opportunities.
There’s a lot to learn about investing in real estate and the various niches that exist at this intersection. But with so much information available, it’s often hard to know where to start. Here are a few places to look:
The easiest way to learn in today’s environment is to find some real estate blogs from leading experts in the industry and just start reading. Devour as much content as you can, making notes about what you learn along the way.
By reading blogs from as many different investors and experts as possible, you’ll get a multitude of opinions and perspectives. This will develop a sense of balance and prevent you from falling for get-rich-quick schemes that one or two gurus are trying to push in order to pad their own bank accounts.
In the age of digital content, it’s easy to forget about books. Yet, there’s something to be said for taking the time to sit down and read a book. It forces you to carve out time and concentrate.
Dozens of real estate books are published each year, so the key is to find ones that are reputable and worthy of your time. Old real estate books are good as well, but look for ones that discuss tried-and-true principles of investing in real estate, rather than flashing trends.
Some of the best real estate investing books of all time include The Art of the Deal, The ABC’s of Real Estate Investing, The Challenge, Real Estate Loopholes, and Rich Dad, Poor Dad.
A lot of people complain that they don’t have enough time to read. While most of these people fail to account for all of the time they waste sleeping in, watching TV, and mindlessly browsing social media, the point is taken. In an age where time is at a premium, you may find podcasts to be the best form of education.
The great thing about podcasts is that you can listen to them at any time, anywhere. Whether you’re commuting to work, sitting in your office, exercising, or doing household chores, you can turn on a podcast and educate yourself. There are tons of podcasts on investing in real estate available, so check out as many as possible.
Looking for a little more handholding and specific advice than a book or podcast can offer? Investing in real estate courses are always an option, but you have to be cautious.
Real estate investing courses are a dime a dozen. Before signing up for any course, make sure you do your research and hear from others who have taken the course in the past.
Once you feel like you’ve learned some of the basics, it’s time to get a little bit of hands-on experience that can’t be gained through books, podcasts, or courses. The safest and most effective way to do this is by finding a mentor and tagging along as much as they’ll let you.
A mentor is someone who is already doing the things you one day aspire to do. They should have the heart and compassion of a teacher, with the sole goal of helping you learn so you will one day be successful.
Even if you’ve spent time with a mentor and watched some deals go down, it’s a little different when you have some skin in the game. You may find it helpful and encouraging to partner with someone on your first deal. This splits the risk and gives you experience and skills you might not possess on your own.
At the end of the day, education without action is worthless. If you spend weeks, months, and years of your time learning about real estate but never actually invest in a piece of property, all this head knowledge is useless. Dive in and start investing in real estate. You’ll make mistakes, but you’ll also find that success isn’t as elusive as you feared it would be.
There’s a lot to know about investing in real estate. It’s important to learn as much as you possibly can, but don’t let it overwhelm you. If you let the things you don’t know foster anxiety, you’ll end up paralyzed in fear.
The good news is that you can get started with just a little bit of knowledge. Armed with this knowledge, you can surround yourself with people and systems that lower risk and maximize opportunities.
If you’re interested in investing in real estate in the Houston area, Green Residential can help. Our comprehensive property management services will take care of accounting, rent collection, tenant screening, property marketing, inspections, repairs, and all of the other details so that you can focus on the big picture.
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