by Theresa Bradley-Banta
Of course, I’m kidding. It’s next to impossible to invest in real estate and expect a solid return if you treat it like a hobby. Yet thousands believe they can create a lucrative sideline business by working only a few hours per week.
Why? Most likely because real estate investing gurus, late night infomercials, and those with a vested interest in promoting real estate as an investment, insist it’s a piece of cake—that anyone can do it. Not everyone can. And it’s not because they lack talent—it’s a result of a lack of dedication, education, time, money and help.
Do you play golf? Are you any good? Exactly! If you said, “Yes,” it’s because you’ve worked hard at it. You’ve probably had some coaching too. And if your answer was “No,” well you and I both know you could improve with time, training and dedication, barring physical limitations of course.
How much time does it take to excel at real estate investing?
Should you work half an hour per day? Two hours?
Most people have trouble sticking to a daily plan. They end up cramming those half hours into a single sitting. I’ve seen it happen dozens of times. Usually the time spent in a cram session is woefully inadequate because there’s no direction—no plan or goals.
Start seeing real estate investing as your other career. A career you work on daily and with tremendous consistency.
Go for it
Set aside 30 to 90 uninterrupted minutes per day and devote that time exclusively to real estate investment research, education, and networking. Plan your time carefully and stick to your schedule.
Make real estate investing a priority amid all of your other obligations. You will succeed. You’ll know you’ve really accomplished something huge the day you close on your first solid investment property. It’s like winning your home tournament!
And then your work has just begun.
But I don’t have any money!
This is probably the biggest stumbling block in most people’s minds.
Do you know how I started in multifamily investing? How I was able to raise hundreds of thousands of dollars for my first deal? It’s simple. I found a property that friends and family wanted to invest in.
It’s not the money. The trick is in finding a fantastic investment opportunity—one that provides attractive returns to you and to your partners. Along with that, you must be able to demonstrate a solid working knowledge of:
- your goals and investment strategies;
- the deal itself (financials, due diligence, etc.);
- your operations plan;
- the market;
- your likely investment returns; and
- your exit strategy.
You’ll also need a good team with the ability to carry out your investment plans. And don’t forget, your lender or bank is also your partner. This level of preparation goes a long way in attracting financing.
We’re right back where we started with research, education, and networking.
How do you find a deal that people will be interested in? You network.
How do you know you’ve found a good property in a solid rental market? You learn how to research real estate investment markets and how to analyze investment property financials and potential returns.
Are you, at heart, a real estate investor?
The bottom line is your heart has to be in it. It’s much easier to become engaged in the process of real estate investing when you have goals.
It also helps to find some pleasure in what you’re doing. I love that we provide safe and secure housing for our residents. I also love to play golf, especially when I combine it with real estate investing. (Ask me how sometime!)
What do you want to accomplish? What is your vision? What are your dreams? Are you willing to work long, hard hours to get there? On top of your already busy schedule?
Take action now
Now that you’re committed to research, education, and networking let’s add action to your list.
Be careful not to spend all of your time in solo endeavors. Don’t get stuck in front of your computer. Connect with other like-minded individuals. Network with successful real estate investors. Get out of the house or office. Start looking at markets and begin to get an idea of where you’d like to invest. Think about what types of properties will meet your specific goals.
Are you ready to start investing in real estate?
Education will help eliminate risk and give you confidence.
Take a look at my Start Here page for articles that show you how to get started investing in real estate. You’ll also find links to excellent resources for market research.
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