If you’re a REI newcomer and want to know about real estate investing for beginners, then look no further. Here’s everything you need to know to get started.
This guide will walk you through the details you have to know to become a successful real estate investor.
The first thing I want to do is show you what not to do, okay?
Must-know Tips: Real Estate Investing for Beginners
1Do not buy a house to rent
Do not buy a single door to rent. I talk about this all the time — in my books, at my events, in all my content material…
Never rely on one of anything for anything, ever.
In other words, one house equals too many problems.
- Because each investment requires a separate deal, due diligence, loan, and mortgage while equity slowly builds up;
- The margins are too small to hire a property management team to handle tenants’ midnight phone calls;
- And if your tenant moves out, you’re basically screwed.
2Do not buy your first deal based on your budget
Don’t determine what you’re going to purchase based on how much money you have.
Just because you don’t have money right now doesn’t mean you can’t buy the deal.
I’ll show you in a minute how to get great real estate deals even if you have no money or bad credit — just keep reading.
3Do not buy less than 16 units
You’re looking for a target of 16 units or more.
Don’t go small in real estate. Go big. Go lots of doors.
The more units you have, the more protection you get.
Now, here’s what you need to do…
4Be in the market
You have to know your market.
And you do that by looking every single day at deals and talking to brokers.
So, do your homework to know what’s going on in that market.
5Ask hard questions
I want you to ask questions that most people are too afraid to ask.
- What don’t I know about this deal?
- What’s the worst year this property ever had?
- But what if rates spike again?
Sometimes you need to ask the same guy the same questions at least 5 times to get the real answer. So, don’t be afraid to ask over and over again.
6Never compromise location
Listen, you can repaint the property, you can fix the interior, you can replace the doors and windows, but you can’t change the location of a property once you buy it.
If you’re gonna do it, get the best possible location you can.
And don’t be scared to pay that extra money for it.
Now, I have a free training where I go in-depth with you for a couple of hours on:
- How to find a great real estate deal;
- What locations to look for;
- How to get a lender even if you have bad credit;
- What markets are best;
- How to get investors if you don’t have any money;
- What to say to the broker, and much more.