Impressed by her niece’s goal to start investing in real estate at a young age, Joan came to me with questions about starting on her own real estate investment career path. Knowing nothing about the business, and worried that she might be too old to gain some real traction, even the idea of buying that first investment property seemed daunting. But, I reminded her that I didn’t exactly get started as a young pup and I was doing just fine. And, though I believe that how you get your investing career off the ground makes a big difference in your ability to scale your business later, I don’t believe that age has anything to do with it. So, we made an appointment for later in the week to go over some of the finer points of how to improve your chances of success no matter when you get started.
How to Start on a Successful Real Estate Investment Career Path
Joan’s concerns about becoming a real estate investor are common. You may even have them yourself. But, if you linger too long on all the reasons why you might not succeed as an investor, you may never find out if you actually have what it takes. Of course, some degree of skepticism can be healthy in this business since there are always risks to investing in residential property. That doesn’t mean, however, that you shouldn’t seek advice from more experienced investors, like me, who can give you real insight into the mechanics of building a career of your own. After all, if you’re curious about how to create potential wealth for your family and think investing in real estate might be the path to get you there, you owe it to yourself to find out for sure.
While becoming a real estate investor can be made easier when you’ve got some direction, building a good business requires a lot of hard work. But, if you have a strong work ethic, you’re already halfway there. To cover the rest, here’s the basics:
- Buy your first property. The beginning of your career in real estate investing starts with buying that first property. It’s a big first step to take, and it can be a scary one, too, when you aren’t well-rehearsed at evaluating a deal to determine the potential for returns. But, you’ll eventually have to take the leap because, otherwise, there’s just no moving forward. It’s critical to keep in mind, however, that having the right tools and resources can mean the difference between a good deal and a bad one.
- Perform a simple rehab. On your first investment property, keep the renovation simple. Yes, updating the property is the foundation for how you add value to your investment—a critical component of potentially increasing your returns. But, purchasing a property that needs more than a good scrubbing, new appliances, and some minor cosmetic work is usually more trouble—and more money—than it’s worth in the beginning. In fact, these items alone can help to boost a minor fixer’s value. So, when you’re just learning the ropes of how to maximize returns, going for a complicated rehab is simply too risky. Save the big overhauls, and the bigger budgets, for the expert investor you’ll become later.
- Get more funding. The cash you’re able to stash from your initial investments may not be enough to fund all of the deals that could end up coming your way. So, it’s a good idea to acquaint yourself with other means of financing, like using hard money, and align yourself early with reputable lenders. When a great opportunity lands in your lap, you don’t want to have to pass it up because you can’t fund quickly enough. But, because these and other private-party lenders often charge high interest rates and fees, compare your options before you need them. You don’t want to miss out on a good deal, but you don’t want to use a bad loan to pay for it, either.
- Purchase several properties. To be able to build your property portfolio, make a good living, and scale your business, you’ll have to get to a point in which you can buy, renovate, and sell or rent several properties each year. To do that you’ll need to implement a lead generation strategy that helps you find motivated sellers of distressed properties on an ongoing basis. Better yet, use a system that encourages them to find you since the conversion rates will be better.
In addition to the things you should do to start your investing business off on the right foot, and stay on track with scaling it every year, there is one thing you can do to make it go as smoothly as possible. You can join a team that provides you with the best tools and resources from the get-go so that every step on your real estate investment career path takes you in the direction you want to go.
The Best Way to Stay on Track With Scaling Your Investing Business
I was no spring chicken when I became a professional real estate investor, but I didn’t doubt that I could make a solid go of it for two reasons. One, I had the kind of work ethic that every entrepreneur needs—especially a real estate investor—to see me through the good times and the bad. And, two, I’d become an independently owned and operated HomeVestors® franchisee. With the tools, resources, and support that were made available to me as a member of the “We Buy Ugly Houses®” team, I knew that if I worked hard enough, I was trekking the path to meet my real estate investing goals. Once Joan heard that her chances of succeeding as an investor could be improved by joining the HomeVestors® franchise team, too, she didn’t let experience, age, or doubt stop her—and, neither should you.
Start your investing business with the team that’ll get you moving in the right direction. Contact HomeVestors to learn about how you can become a franchisee today.
Each franchise office is independently owned and operated.