How to Become a Real Estate Investor

Many people have aspirations to become real estate investors.  They want to be the next Donald Trump.  It can be an intimidating process almost like being a freshman on your first day of high school.  Who can you trust?  Who should you talk to?  What if someone gives me bad advice?

Well, just like most things in life (job/marriage/hobby), you just need to jump in and get started.  One of the most important aspects is surrounding yourself with a set of people that you trust and that have your best interests in mind.  Preferably ones that have owned or currently own investment properties.

Here is a short list of steps to getting started as a real estate investor:

1. First spend time deciding what type of real estate investing you are both interested in and capable of. Some examples are: flipping, rehabs, single family home rentals, multi-family rentals, commercial buildings. If you are unsure, drive around, call some for rent signs, and talk to the other landlords that are already doing what you are interested in.
   
2. Attend a local REI group meeting to meet other investors and make contacts. Listen to what they are doing.
   
3. Read everything you can about real estate investing. I recommend that you do NOT read all of the pie in the sky big name books that say you can make millions in real estate. You want the real people in the trenches.
4. Find a local real estate investor and buy him/her a cup of coffee to discuss the process and business. You may pick up a key adviser here.
5. Find a mortgage banker that specializes in investment properties. Without your financing in order, all this work is worthless because you will not be able to buy anything. This should be a person that you plan to work with for as long as you are buying and selling properties. S/he will become a trusted adviser.
6. Research and select a Realtor that also specializes in investment properties. Any real estate agent can give you MLS listings. You want the person that not only sells the type of real estate investment that you are interested in (such as flips, multi-family apartments, commercial), but also owns investment properties. This give him/her real life experiences. Again, this person will become your trusted adviser.
7. Immerse yourself in how the purchasing process works. Understand all the details of the purchase agreement and closings.
8. Ask questions of everyone you can about managing tenants. What should you look for? How do you screen them? Can they recommend any eviction attorneys?

Ultimately you just need to jump in and try it. Many people never buy their first investment property because they spend all their time trying to learn everything possible. Most experienced landlords will tell you that they are still learning even after owning properties for years! Just get started.