Getting Started on Your Real Estate Investment Journey

Are you ready to dive into real estate investing but not sure where to begin? You're not alone. Starting in real estate can be overwhelming with so much information and advice out there. Let’s cut through the noise and get you on the right track. This guide will debunk common myths, help you define your goals, and give you a clear, actionable plan to start your investment journey.

Busting the Myths

First, let’s clear up some misconceptions. These pertain to the two most common ones I hear:

You Don’t Need a Realtor’s License First: Many people think you need to be a licensed agent to invest in real estate. Wrong! I was an investor for 18 years before getting my license, and that was mainly for giving referrals. You will likely need a realtor on your team, but you don’t need to BE a realtor to invest in real estate. 

You Don’t Need to Set up an Entity First: Setting up an entity that you’ll invest with, will likely be part of your investing process.  Depending on what you’re investing in and where, it could be a helpful step for liability protection and tax considerations.  This is not your first step though. Focus on your goals and strategy first, then worry about the legal stuff.

So what are the first steps to getting started in real estate investing?

Step 1: Define Your Goals

Planning your real estate journey is like planning a vacation— first you need to know where you’re going. Your journey in real estate starts with clear goals. Ask yourself:

• What are your short-term and long-term goals?
• Do you want to replace your job income with passive income?
• Are you looking to minimize taxes?
• Do you aim to prepare for retirement?
• Do you want to leave a legacy for your family or community?
• Do you have another goal that’s important to you?
• Are your goals a combination of the above?

Knowing your destination shapes your path. 

Step 2: Understand Your Starting Point

You need to know where you are to map out your journey. Assess your current resources:

Money: What funds do you have available for investing? Use my Million Dollar Net Worth Activation Snapshot to evaluate your financial situation. This tool, along with a ChatGPT-powered AI assistant, helps you understand your net worth and identify resources you might not have considered, like using retirement account funds for real estate investing. [Click here to try]

Time: How much time can you dedicate to real estate investing? 

Relationships: Who are you currently connected to that could help you with your real estate ventures? Identify people or networks you know and/or are already a part of who can be part of your team, could be partners/investors, and/or peer support.

Education: What knowledge do you already have that could help you be successful in real estate? 

Experience: What relevant experience do you have? This could be anything from project management to market analysis to renovations.

Step 3: Bridge the Gap

Once you know your goals and understand your starting point, identify how to bridge the gap:

Research and Education: Read books, enroll in courses, and seek mentorship programs.

Financial Preparation: Improve your credit score, save for a down payment, and explore financing options and get loan prea-approvals.

Building Your Team: Find reliable team members and start networking to expand your connections.

Starting Small: Consider low-cost entry points into real estate investing. My guide, "Investing from $1 to $1 Million," offers strategies that require minimal funds.

Get Started Today

Real estate investing is a journey unique to each person. By defining your goals, assessing your resources, and bridging the gap, you can create a personalized path to success. Remember, you can always partner with others who have the resources you lack.