I hear this question ALL the time. As an investor, people quickly find out and really want to talk about it. Real estate is HOT! Everyone has seen at least one day time drama flipping show. Its seems like it all goes wrong, but in the end, everyone sells the house and makes more money than most firefighters do in a year. The problem with thats is...
Let's get real, no new guy is going to swoop in and know what they are doing to make money on a flip, or even a rental without education. So, where do you start my friends?
Educated yourself. YOURSELF! Don't go and pay $50k on one of those slick free seminars that becomes a cheap weekend crammed with a head swirling amount of education. You aren't ready for how some magnet implements his systems. To you its all brilliant because you have no experiential knowledge.
THE BEST EDUCATION IS EXPERIENTIAL KNOWLEDGE
Yes, to learn how to do something you must learn how to not do something. THAT is what sticks strongest in our brains, our memory of pain, fear, and shame. So, use it. I've known some far less than intelligent people and I still haven't found someone who keeps putting their hand on a hot stove over and over again. You get burned, you get smarter.
But you don't want to get burned every different way possible. There are so many ways.
So, be a human and realize that we were meant to live in a society. We were meant to learn from each other, to see others hurt, empathize, and to grow our intellect through their pain.
THE GOAL: The student surpasses the teacher, find as many teachers as possible.
I also hear, "Who should I ask to be my mentor?" You don't. Thats like going online and placing an ad for beautiful and rich friends to buy me things and make me feel better about yourself. Want friends, earn them, want success, earn it, want a mentor?
Survey Says : EARN ONE!!!
We earn things we want every day. Earning a mentor is no different, you barter for it.
Three things you have already to barter to get that mentor and sounding board.
TIME- (I typically see young people in this group) First, even the poorest person has time. Like any of your barter tools everyone has more or less to offer. if you have this alone to offer most investors can find a way to use you and how they use you will increase your education and experience.
SKILLS OR EXPERIENCE - (These are typically the contractors who want a better life than working for that paycheck every Friday and know their knowledge skill set can save them tons of money opposed to the causal investor) This alone could have you doing work in smaller bursts or even in free time you have in a non-structured way. (you could drive for dollars, take on a quick handyman project, or bird dog deals on those nights when you can't sleep because you just want to think about real estate)
MONEY- (These are typically people already making a good income, those who came into an inheritance and a paradigm shift occurs where time with loved ones is the only thing that matte so you toss your career and just wanna dive in, or people who want to take more control over their personal investments and are frightened by the fact that $ is imaginary and can disappear. LAND ALWAYS HAS VALUE) If you are successful in your professional life and you can see the value in passive income and diversifying your investment portfolio it makes sense to allocate some of that hard earned cash in the bank to actual real estate you own vs those who think about investing in REITs. You can fund a deal, offer to pay for their time to guide you through your investment growth process (really hedging you likelihood of getting burned) and accelerate your education process because you get the answers you need. This will assist you in not getting swallowed up in the ocean of information you feel you must have to start. It also links you to a team that someone has already assembled. THIS IS PRICELESS
All three tools that a new investor offers someone more polished will get their attention. But, if you don't educate yourself in tandem, their attention will quickly diminish. A mentor's time is REALLY valuable. Time you take up takes them from finding deals, mentoring others, or time with their family. They will value their time, if you want a mentor, you need to value it more than they do.
Before you get any experience I have found the best way to educate yourself is to figure out how you learn best or most conveniently. I found listening to audiobooks, podcasts, and even local real estate radio shows in the car, on my head phones while I walk my farm (farm=the street by street area you invest in), on the elliptical machine, or playing on my computer as I analyze deals. You can read books, start going to local real estate investor meetings (don't worry if you don't even own a property, just go and listen or introduce yourself as an eager learner hoping to gain insight through others, we were all new once).
Personally, I think there are two best ways to cut your teeth in RE investing.
House Hacking and buying a Turn Key Property
My next NEW INVESTOR blog will be about buying turnkey properties. Please follow me and keep up with my new blogs for the new investor, out of state investor, and the current investor who can really use some tips and tricks in automatizing their systems with technology and old time tested tricks.