What is the best way to get into real estate investing?
1.Just dive into it starting with Wholesaling
2.Starting a good business that generate good cash flow
Any reply from any level of experience is appreciated.
Depending where you in your life you should just dive in and start wholesaling to genrate cash reseves then take a percent and invest in tax lien certicates and rentals for more long term wealth and passive cash flow
Well, here’s my situation. I am currently a 21 years old, sheltered by my parents. I am very shy and have low self-esteem that I’ve been trying to over come for a few years now. I have little knowledge in the field of real estate and the real world. I been trying get myself to start doing some real estate wholesaling, but my lack of confidences is holding me back even from taking the first step. What do you think I should do in this situation? Should I move out and burn all bridges, forcing myself to do it with no retreat?
Thank you for your reply.
Well, you’re reinforcing your vulnerabilities by contemplating extreme actions.
You have strengths. They’re just less obvious at this point. Few 21 year olds know themselves very well. So, relax and give yourself some room to grow.
I would suggest joining the military. You don’t have to spend a career in it, but from every perspective I have on this option, it produces disciplined, hard-working and confident people. This would serve you enormously well. Not only that, but you’ll qualify to get cheap VA real estate financing. And…perhaps money for college (I’m not sure what the minimum requirements are, but it’s a potential benefit).
After that, I would suggest you get married. A military man has appeal to a lot of woman. Just saying.
Meantime, focus ONLY on your strengths. Talk up yourself to you. If you are unable to do this and remain at home, then maybe moving out is the answer. However, burning bridges is reserved for the stupid and short sighted and not an option for you. That doesn’t mean embracing a dysfunction that your family might represent. But it does mean maintaining bridges that you may want to cross again.
You may have to cultivate new friends. I would look to make friends and establish relationship with people that are already where you want to be. Successful people, like to pull others behind them. The ones that are not interested in pulling you with them, are likely not going to be successful in the long term.
Be the person that brings value to every relationship. Look for ways to bring value to every situation/transaction…
Recently I was reminded that those who are only after a buck, are the worst businessmen. Rather be the person that everyone knows is the go to person for “x”. “X” can mean referrals, new business, connections, ideas, experience, and maybe for now “being the work mule.”
Hope that helps.
P.S. Go buy “Get The Edge” from Tony Robbins. If you get ambitious, go read both his core books, “Awaken The Giant Within” and “Unlimited Power.” These are sort of hard reading, but densely packed with actionable information that can only change your life for the better.
If you still want to start a wholesaling business, keep your day job, and don’t move out of your house. Meantime, your family may be impressed and think to start charging you rent, like an adult. Better; offer to pay rent and help with the bills before you’re asked… (assuming this is not happening already).
Do the hard things first, and the rest will be a piece of cake.
Real estate investing can be a good way to earn a stable income and it can be a “job” that can be passive or active depending on your desire. I would recommend investing with less personal involvement and then get more involved (and thus earn more profit) as your experience grows.
The basics are quite simple and in this buyers market - much simpler. Buy cheap, rent until the market recovers and sell for a profit.
In today’s mortgage market, getting bank financing can be a real trip. So your first step is to get pre-qualified for a loan. Don’t even start shopping for investments until you have done this. Pre-approval will (1) tell you how much you can buy and (2) it will make it more likely a seller will accept your offer and (3) the closing is much quicker.
Once you have that, now find a discounted property that is in good condition in an area with good rental demand. The foreclosure market is an excellent way to find cheap property. I would highly recommend getting a home inspection before you buy a property. Write that as a contingency in your offer.
After you have your investment property, rent the property to create a positive cash flow. Then be patient until the market recovers and you can sell the property for a higher price. From there you take that profit and re-invest.
Hope that idea helps.