I am seriously interested in real estate investing! I have read almost all of the Rich Dad, Poor Dad books, and have moved onto some other reading materials. I now want to know the next step to take ACTION. I know I need to start building a team of people like attorneys, realtors, etc.
I want to know where to go from here. I have been researching property management companies and some realtors, but I just don’t know exactly how to start. I am looking for rental property and not looking to fix and flip at this point.
Is it wise to join apartment associations in my area?
What’s the first step?
Get a realtor?
Get an attorney?
I want to sincerely take action soon, but I need a little clarification as to what my next step should be. I’m scared and nervous, but not enough to keep me from pursuing this. Thanks.
You have a classic case of Paralysis of Analysis. Put down the books, charts, and historical records and talk with a few homeowners. I don’t care how book smart one is, it takes street smarts to make it in this business.
We need more information in order to maybe help you.
Are you renting? How much is your rent? Do you want to buy a home now? Is it just yourself, or do you have a family to support?
Do you have a job?
How is your credit and debt situation?
For many people, the best first step is a duplex home. Try reading the threads on buying a duplex.
This is an incredibly good time to buy. It’s good that you want to get started.
If you’re planning to be in the rental property business, then I would strongly suggest reading the archives in the landlording section. I would also strongly suggest searching for the 50% Rule and 2% Rule using the search function at the top of the page. The truth is that the vast majority of newbies fail in a short period of time and the number one reason they fail is that they don’t understand real world operating expenses. The 50% Rule and 2% Rule threads discuss these issues.
While you’re educating yourself on expenses and landlording, you should also go to some banks and see what you’ll be able to get for financing. It’s kinda tough out there right now and you’re just starting out. Better to find out what you’ll be able to do before you go check out a bunch of properties. Have an idea of what type of property you want and what price range you’re looking at & see if the bank is willing to help you (that is unless you’re planning on paying all cash or private money).
I would figure out what you want from this–money now, long-term wealth, etc.
Then figure out what kinds of properties and exit strategies would best help you achieve that.
Then, from your educational resources, mentor, and contacts, get help creating a to-do list of things that will help you find motivated sellers. Work on getting financing lined up on the side, but if all else fails, you can wholesale the deals you find.