I got a Facebook message from a kid (anybody under 30 is a kid to me) the other day asking me for advice on getting into real estate. Here’s my response:
What do you want to do? That’s the first question to answer. Real estate is a big, big world full of opportunities. What do you want, what interests you? Single family homes, duplex, triplex, four-plexes, small apartment complexes, big apartments, warehouse, self-storage, office, retail, land development?
The second thing you need is education. Learn about what it is that you want to do. Free education is everywhere. Maybe even offer to work for free just to help an investor out on some of his/her projects.
The third thing you need is a little bit of money and decent credit. There are ways to go no money down, but that’s a pipe dream. Don’t count on it. Even with seller financing, you’re going to need at least 10% down and without a track record, it’s going to be challenging.
The fourth thing you need is a deal to get started. Don’t wait. Start now, today. Forget all the timing and planning bullshit and get right to it.
Lastly, treat everything you do as a business, even though you might start out part-time.
My company offers passive investment opportunities in apartment complex ownership. Our investment levels start at $50,000, but we can be flexible. For our last two projects, we raised $1.5 million to buy an additional 105 units.
It took me 18 years to get here, but it doesn’t have to take that long. If you’re focused, with some seed money, you’ve got some education, and you have a pipeline to get deals funded, you can build $1 million in net worth in 5-7 years. It’s hard work, but it’s doable.
Do you have any money to start? If you don’t that’s ok. You will probably have to start smaller. But, today, start thinking about who does have money that would make a great partner for you.
Focus. Educate. Fund. Find a deal. Treat it as a business and you’ll be wildly successful and financially free.
Cheers!
Mark