Real Estate Investing 101
Every single day people decide that they want to get into real estate investing, and they look everywhere for that perfect Real Estate Investing 101 course. They buy books, sign up for courses, go to seminars, and make a lot of plans, but then they never make a dime with it. Why? Well the answer is easy: they learn the how-to of real estate investing, but they never put that knowledge into action. We’ve all heard the saying “knowledge is power,” but the reality is knowledge is nothing without action, so I say “applied knowledge is power!” So here it is Real Estate Investing 101 by me the REI Maverick, Phill Grove.
Real Estate Investing 101: “So if I could give one piece of advice: Learn all you can and then apply that knowledge.”
As you are learning, go ahead and start planning and visualizing the application of what you are learning in the real world. Or better yet, find someone that will mentor you and allow you to participate with them so that you are applying your knowledge as you learn.
Real Estate Investing 101 – Know the Lingo
As you begin studying you will likely come across terms and sayings that are foreign to you, but used frequently in the real estate investing industry. You will need to know and understand these words and phrasings in order to communicate correctly with other investors, tenants, REALTORS, and others that you come across.
Real Estate Investing 101 | Know the Process
You will also need to understand the basic mechanics of how a real estate transaction unfolds from evaluating a deal, to making an offer, to the actual closing of the deal. The first of these is probably the most daunting and biggest hurdle for any new investor. Many new investors get very excited when they come across their first deal (or what looks like a deal), or second deal, or even hundredth deal; the sad reality is that most of these ‘deals’ are actually duds. You must sort through each deal carefully and know how to evaluate a property correctly so that you are putting your energy into the good deals. It can be very difficult for a new investor to walk away from a deal, but if you learn anything from this Real Estate Investing 101 post, learn that it’s okay to walk away.
Real Estate Investing 101 | Create Clearly Defined Goals
Although real estate investing can be a lot of fun and very lucrative, it’s important to know that there will be problems, headaches, and unforeseen complications along the way. Because of this it is important to set clearly defined goals for yourself and your real estate investing business so that you can see through the muck when it arises and focus on ‘why’ you are doing what you are doing. The final thought in Real Estate Investing 101 is this: Focus, focus, focus and remember “Doubt will take you out of action; but Action will take you out of doubt.”