Real Estate 041: How do I get started?

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Now that we have just discussed why I like real estate as an investment class, let's talk about how you can get started. First and foremost, I strongly believe its very important for you to get educated in the area you are investing in. I am not saying you need to be an expert in the field, however you should know the basics on real estate: finding a market, finding a team/networking (realtor, turn-key, property manager, wholesalers), defining your criteria/goals, analyzing a property, obtaining financing, just to name a few.

In this day and age, there are tons of resources where you can obtain this information. However, with the wealth of information, comes what is called "analysis paralysis". Investors have so much information at their fingertips, they second guess themselves at every turn, looking for the "perfect" deal, or go looking for gurus who can become their savior. There is no such thing as a perfect deal, and too many gurus who don't have your best interest at heart. The best way to learn is to read/listen to blogs, podcasts, and forums (just like you're doing now), connect with other investors and realtors who are active in the field, and then take action at the appropriate time.

My favorite resources to learn about real estate investing have been the following:

Forums/Networking: www.biggerpockets.com (FREE)

Biggerpockets is the largest community of real estate investors on the internet. With that network comes all the other professionals that you need to connect with to succeed. I have talked to over 10 investors from California who are active real estate investors (some have 2 properties, some have 10+), who share their knowledge of investing, common pitfalls, mistakes they have made, success stories, etc. They have truly helped me navigate through the "noise" and the "naysayers" and proceed with owning a rental property. In additional to investors, there are realtors, insurance agents, wholesalers, turnkey providers, property managers, and rehabbers who you can network with and form partnerships for projects down the road. Remember with any relationship, trust is built over time, so don't accept everything you hear/read in totality but use your judgment to make the right decisions for your situation. Remember to sign up for their free webinars every week that has a ton of great information for newbies.

Listening/On-the-go: podcasts (FREE)

Download any podcast app and search real estate investing, turnkey, passive investing, cash flow, rental properties and you will find a ton of shows. I would take a look at the reviews/subscribers just to see if they consistently put out material, are relevant (you don't want to invest in 2020 with information from 2006), and you enjoy listening to. Podcasts are great to soak in information when you are driving, exercising, multitasking on the web, etc.  In no particular order, below are my top rated podcasts:

1) Norada Real Estate - Passive Real Estate Investing

2) Keith Weinhold - Get Rich Education

3) Joe Fairless - Best Real Estate Investing Advice Ever

4) Michael Blank - Apartment Building Investing

5) Brandon Turner - Biggerpockets

6) Scott Trench - Biggerpockets Money

7) Matt Theriault - EPIC real estate investing

8) Rod Khleif - Lifetime Cashflow through Real Estate Investing

9) Matt Nusbaum - Corporate Investor Podcast

10) Dan Lane - Rental Income Podcast

Investor Mind-setting/Action Items: Books ($10-15/book)

I personally own over 30 business/self-help/real estate books and I think they provide a great framework for newbie investors to identify their goals, create a strategy, and devise and action plan to become a real estate investor. Real Estate books such as "ABCs of Real Estate Investing" Ken McElroy or "Millionaire Real Estate Investor" Gary Keller cover all the areas I have mentioned earlier such as finding a market, finding a team/networking, defining your criteria/goals, analyzing a property, and obtaining financing. It is really worth the $10-15 per book. Check out my “books” section of the blog for summaries and personal reviews of business/self-help books I have read over the years.

As always, please make sure you do your due diligence and talk to your CPA/Attorney/Financial Advisor before making any investment decision. 

Good Luck!

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Book Review 014: Purple Cow - Transform Your Business by Being Remarkable by Seth Godin

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One of my favorite authors in business and marketing is undoubtedly Seth Godin. I wrote a review in one of my earlier blog posts where I discussed his book Linchpin where he wanted to shift from traditional marketing ideas into the new paradigm that the new internet age requires. In the book Purple Cow, Godin shares his insights into the world of advertising and marketing.

What is the "Cow"?

The Cow used in this metaphor dates back to 1895 where author Gelett Burgess wrote a poem titled "Purple Cow". It reads, "I never saw a purple cow, I never hope to see one; But I can tell you, anyhow, I’d rather see than be one". This thought is flipped around in business, where you do want to be the thought-provoking, conversation-starting cow, at least in your marketing strategies, separating you, your services, and product from the competition as much as possible.

In his book, Godin talks about the “P’s of traditional marketing: “pricing, product, promotions, publicity, positioning, and packaging” but those P’s are not as important as creating a purple cow. In the 21st century, consumers have more access to information, more products to choose from, but less time on their hands. These phenomenons had led to savvy consumers who want to satisfy their needs instantly. Godin writes that an effective purple cow will be able to create and meet the needs of intangible consumer desires.

Pre & Post-TV Marketing

A good marketing campaign can only do so much to drive sales if the product or service itself is weak. Now that TV advertising is dying with the evolution of the internet-of-things, the unchanged fact is that the first mission of any company is to create a remarkable product or opportunity that its consumers will seek out. Companies that have been successful in their niche such as Starbucks and Krispy Kreme have been able to market to influential early adopters. They may not be superior than their competitors, but they have been able to convince their followers that it is.

More Ways to Bring the Cow to Work

  • Don’t worry about manufacturing; outsourcing is cheap

  • Talk with your loyal clients; learn what they want and give it to them.

  • Provide top quality, which your buyers will appreciate all the more if you create a convincing “narrative” around your product, your company and its values.

  • Study market leaders outside your industry. See what lessons you can apply to your product.

  • Find a small corner of the market and create an offering calibrated precisely for it.

  • Break the habits of your industry.

  • Try a new approach, product or material.

Hope you enjoy this book!

Click below to get your own copy. See our affiliate disclosure here

Book Review 013: Think and Grow Rich by Napoleon Hill

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One of the most foundational books of personal financing and creating wealth is the book called "Think and Grow Rich" by Napoleon Hill. Authored in the 1920s, this classic book is a collection of wisdom that is based on ideas from the author's mentor, Andrew Carnegie. 

Main Ideas:

  • Wealth creation happens in three steps: 1) visualize; 2) believe; and 3) walk into success.

  • Don't let your early failures define your success. Continue to persist and push on.

  • Create vivid mental portraits of your success. Visualization is key.

  • Passion and discipline are what will guide you on your journey to success. 

  • Avoid negative friends, well-meaning relatives and others who place restrictions on your dreams.

1. Have a burning desire

Hill tells us that if your goal is to becoming rich, you need more than just "wishes." You need to commit yourself to creating and executing on a plan to reach your objectives. Hill shares a six-step plan for achieving this: 

  1. Take a mental snapshot of the amount of money you seek. Name a number.

  2. Name your price. What are you willing to do for the money?

  3. Create a deadline. Fix a date by which you will achieve your goals.

  4. Start a task sheet with a definite strategy. Start now.

  5. Write a brief mission statement.

  6. Make a declaration: Twice a day, read your mission statement aloud.

Dreams are not just floating ideas. When looking at the worlds greatest inventors and leaders, they failed numerous times before they reached their goals. Edison had over a thousand prototypes for his electrical lamps. The Wright brothers envisioned a flying airplane before anyone else dreamt it. Beethoven was a brilliant composer despite him being deaf. 

2. Faith

Hill tells us that faith is the next step in visualizing our beliefs and pushing forward in our attainment of that desire. By telling ourselves that we will succeed, you start to plant the seed of triumph in your mind. This is applicable also with self-doubt and negative emotions, so feed your mind with the right, positive thoughts you need to reach success.

Your brain is a unique “broadcasting and receiving station for thought,” like a radio station that transmits and receives signals. Hill encourages us to listen to the “intangible forces” in our life. These forces – gravity, electricity, thunder and other elements – surround you. Use faith to stimulate your mind and reach your goals. Believe in the power of thought and belief.

3. Organized Planning

Moving from desire, to faith, to action requires strategic planning. To develop the right framework for success, you need the right team. Hill shares these following steps for organized planning: 

  • Surround yourself with "like-minded" individual who support your goals and provide additional resources in achievement of your goals. 

  • Conduct regular meetings and fine-tune your plan. Keep yourself accountable

  • Make sure you are aligned with other members of your support group

During this process, Hill reminds us not to accept failure during our initial phases. Be fluid and open to try different strategies, but most importantly, persist through the difficult times. Study the industry,  opportunities, and players on the field. Formulate a detailed strategy that will help you move the needle in the direction you want to go, even if it means one step at a time. 

Procrastination is a leading cause of failure in successful entrepreneurs, business owners, and investors. To be successful, you must be able to make quick, meaningful decisions and avoid people who undercuts your drive to succeed. Hill reminds us to dodge the trap of public opinion by revealing your plans only to your small circle of advisers. When you indiscriminately broadcast your strategies, ideas and goals, you lessen your chances of success. Keep quiet and keep the faith.

Hope you enjoy this book!

Click below to get your own copy. See our affiliate disclosure here