If you’re thinking of getting started in real estate investment or flipping, you’re not alone. Anyone who’s watched a Grant Cardone video or listened to the Bigger Pockets Podcast finds out quickly how profitable it can be.
However, it’s not all rainbows and sunshine.
Like anything, lots of people (the majority probably) end up failing. Maybe it’s due to lack of education or funding, or burnout, or a deal gone wrong. Either way, you’d be wise to listen to advice from REIs who have “been there and done that”.
Lucky for you, we’ve prepared such an article! So without further adieu, here’s advice from REIs to someone who’s just getting started…
“It seems so many new investors are worried about everything but finding a killer deal. If you find an amazing deal everything takes care of itself – money is easy to find, contractors will be easier as you’ll have a decent budget etc. Stop wasting time thinking you are an investor and go find a deal!” – Nick Evans, owner of CinchSell.
“Good transactions end up being good deals because they were bought at the right price. You make your money on the buy, not the sale.” – John Germaine, owner of Duval Home Buyers.
“First, you need to have a very specific goal. It can not just be “Buy a bunch of houses” or “Make a bunch of money”…it needs to be an exact number of houses or exactly how much money and break that down from a 5 year goal, to a 1 year goal, to a monthly goal, and then a weekly or daily goal. Once you have a very specific goal, you need to design a plan that will get you to that goal. Break that plan down into steps that when completed will accomplish your plan.
The second thing that I would say is to mentally prepare yourself that it is going to get hard and that there are going to be bumps along the road. Every successful real estate investor that I know has had some days or weeks where everything has gone wrong and it just doesn’t seem worth it. If you have already mentally prepared yourself to know that these times are going to come and you have already decided that when they come you are going to push through no matter what…you will be able to push through the hard times and reach the level of success that you desire.” – Nick Disney, owner of Sell My San Antonio House.
“It is very important to balance your learning and your action. I would suggest that you make sure that you are diligent in learning important aspects of the business such as; prices in your market, repair estimates, how to talk to sellers etc. However, do not become crippled by ” paralysis by analysis”. There is no better teacher than taking massive action. You will make mistakes, however, these mistakes will make you a better investor. It is impossible to ” know everything” before you start. No books/podcast/youtube videos can 100% prepare you for every scenario. Believe me when I tell you each deal is different and you learn something new each deal.” – Kenneth Reed, owner of Better House Buyers.
“Create a regular schedule for your real estate activities and adhere to it religiously as if your life depended on it. Print out a monthly calendar page and write it in your repeating schedule. For every day when you complete your activities fill in the date green. Every day that you don’t complete your activities fill in the date red. Watch your green days stack up and you will be reluctant to break your “green” streak.” – Alex Romanov and Viktor Rybachuk, owners of IWillBuyHouse.
“Getting a mentor that is willing to provide hands-on training.” – Ray Foster, owner of Homebuyer CA.
“Educate yourself and gain as much knowledge as you can by utilizing YouTube, Google, and listening to real estate podcast.” – Chris Waits, owner of We Buy Ft. Worth.
“I think the key thing to focus on when you are just starting out is not trying to learn everything about every niche and really pick something that interests you and you have a personal connection to. Go full out with just learning and doing that niche. I see time and time again new investors trying to learn 3, 4, 5 different niches and they spread their effort, resources, and funding in too many things to go broke and not accomplish anything. Stick to one niche, in one city and in one neighborhood. Become an expert and only then do you scale once you’ve built your knowledge and systems to really dominate your niche.” – Fernando Oliveira, owner of RI Cash Home Buyers.
“Pick a specific real estate investing model and stick with it. Two major categories of real estate investing include 1) short-term profits with strategies like wholesaling and fix & flip, and 2) long-term profits with strategies like buy & hold, fix & hold, tax lien investing, REITS and real estate note investing.” – Philip Charles Pirozzi, owner of We Buy New York Homes Fast.
Derek, the owner of KyRU Services agrees, “Find a mentor first and stick to one system. Often times people get “shiny object syndrome” and it can become overwhelming. If you stick to one strategy and master it you can expand from there.”
“My advice would be: stop researching and jump in. Fail your way forward. However, know that it’s a long-term game. Which reminds me, if you are marketing for your deals track every metric from day one. Will be crucial over time as you move your way forwards and upwards.” – Jack Tangy, owner of Redbridge Properties.
“Try to find someone in the business that is successful and do what they do. Be persistent and consistent, and always make decisions based on numbers. And make sure you focus on marketing. You can’t buy houses if you don’t have leads.” – Eric, owner of Premier Property Buyers.
“‘Be flexible, be hungry, be honest’ is my motto. Don’t be afraid to fail because it’s going to happen at some point.” – Brian, owner of Rock Hammer Investments.
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