Real estate is a completely new to most people. It untapped potential attracts thousands of people but only a handful of them come out “successful.” I have always been interested to know the market dynamics shaping real estate industry. But that’s not the point, my concern is with the self-proclaimed “Gurus.” These are the guys who makes things quite simple on the surface. That is why you will find thousands of young people getting into something with high hopes only to find the exact opposite.
Technically speaking and being completely impartial on this issue, to some extent, I would sideline myself to what they say. Real estate is simple. It is just a matter of knowing when, where and who to act with. One of the challenge I find most starters experiencing is entry with no cash. That scares most people and they quite even before knowing what’s inside.
Starting your real estate journey
Who said that you have to have a thousand dollars or more to get started. It is possible to start out in any field in this life with NOTHING. No cash. To break this a little, there are so many properties that you can invest in with as little as $1. Therefore, I am not trying to make you bulge with happiness. It is something I have done and encouraged others to do.
We can argue on this issue and debate about it all we want. Nonetheless, even if possible starting out in real estate with nothing, it is not possible to continue still with nothing! It is a fact that you have to start facing.
The success journey for most Realtors usually starts cold. And as they try to make their way through the mist, some of them drop out of the race. This is what I call – quiting before beginning. It is a problem that I will show you what you can do about it. But first, lets learn on how to protect our investment.
Investing in real estate
You heard me say you can start out with nothing, right? You heard that one right. Investing in real estate is one of the easiest investment you could ever make. First, the requirements are lenient. Secondly, I just said it! You do not need that much of capital. Unlike many other investment vehicles, real estate is quite patient. In short, do not be prepared for marathons.
With a simple old house[fixer upper] consider yourself on the move. Basically, like many other investments, you will be very discouraged, at first. But as time goes, you will have fully equipped yourself with the basics which I will outline here.
Investing in real estate business will require high level of commitment, especially if you started out broke. Being committed to the end game is what will keep you in the present game. Again, sacrifice is one element real estate business forcefully demands. If you have these, then, you are prepared to know why you are likely to quite even before you begin.
You lack a plan
Walk around. Talk to people. And listen to yourself. I have come across many Realtors, I have spoken to a thousand of them. One thing is for sure, lacking a plan is the source failure to most. This is what happens, most starters go blindly investing in real estate expecting some “nice” returns at the end of it all. It doesn’t work that way. In most cases, proper research on the market lacks on our checklist.
Lack of plan is like a disease. You have to get a cure. Lets say I gave you $1000, what would you do with it? There are a lot of option and mind you, 90% of most people are not prepared to receive the cash. If you ask that question, most would stammer. That’s what is called lacking a definite plan.
With the money, you are not looking for ways to spend it as an investors, rather, the money looks for you. Simply, what my narrations are trying to point out is that, most starter quit because of ignorance and failing to plan ahead.
You do not protect your investments
Any investment, not just in real estate, needs protection. Most people want to quite simply because they cannot protect their investment. There is one thing you should know. The purpose of investing in real estate business is not to be stressed out by the taxes. HVAC technicians still need not to stress. More importantly, I am quite sure that you are not looking for an experience that comes after eviction. Therefore, you need your investments to stay up on a solid ground. Protecting your investment gives you a good chance to watch and learn as your investment portfolio increases and expands.
You are in the learning process
As a starter, you are a learner. As a matter of fact, this is a completely new world. You know nothing! Do you get the feeling that you are too smart for anything? Well, that doesn’t apply here. Real estate investors face a lot. One blow after another and every kind of uncertainty. Are you ready to face that? You are in the learning process, so have the learners mentality. To avoid being broke a few months later, I would strongly recommend having people you know are doing this for guidance.
The bottom line
Starting out in real estate is a completely different from starting out in other investment arenas. Simple reason being that real estate requires you to be somewhat diligent. You don’t just go into real estate, most of the people who fail in real estate I believe went blindfolded. You need to have a solid plan, even if you do not have cash.