More and more people are considering other alternatives to make money instead of just relying on their income from their job. Investing in real estate is an alternative that many people consider as an option of supplementing their income. However, other people dismiss the idea of real estate investing because they believe that it does not work based on incorrect information.

I wanted to address the issue of being a beginner investor and what you will need to get started. Once you understand what is needed, it will be much easier for you to make a decision if this business is right for you. If you start right, it is easier to finish right.

What You Will Need

Time - Any true business is going to require a time investment. Real estate investing is no different. It is going to take some time to get the business up and running. It is going to take time to learn the business and time to build it. You need to be willing to make this investment before you even start or you are wasting your time.

Power Team - For me, the power team is a must have as you are getting started. In real estate, you are not going to be able to do every aspect of this business on your own. You will need help from people like real estate agents, lenders, title companies, attorneys, contractors etc. in order to be successful. You need to realize that these people will help you be successful if you find right type of person. Since there is so much to know about real estate, it is important for you to surround yourself with people that have the right information. You are only going to be as good as the people you surround yourself with.

Make Offers - You will need to make a lot of them. In most cases, your great deals will come as a result of negotiating. This negotiation happens as you are making offers. Realistically, you will need to be making 5-10 offers in order to get one accepted that will be a good deal. This number of offers you need to make will be different for everyone, but keep in mind that real estate is a numbers game. If you play the numbers, you will win.

Knowledge - You will need to spend the time to learn about this business. Too many people read one book and then jump right into investing. While it is important to take action, you should take actions based on knowledge and not guesses. Real estate is a wonderful investment vehicle, but it can also run you over if you are not careful. I highly recommend getting training and education before investing. You do not need to know everything, but you need to know enough that you can act with confidence.

Common investing myths

I need money to invest - This is one of the biggest misconceptions out there. You will need money to do real estate. However, it does not have to be your money. There are so many different ways to put together a deal that does not require using your own money. You could use a financial partner, use a lease option that requires very little money, or wholesale a deal to another investor so that you do not need financing. You will find that if you get a good deal, that the money will come. Money will always come to good deals. Of course, if you have money available to invest, then you will have more options as an investor.

I need to have good credit - Depending on the type of deal you are doing, you will also not need credit to get started. There are types of deals that you can do that will not require you to use your personal credit. Deals like this would include seller financing, wholesaling, lease options and others that will allow you to still do deals without using your credit. It all depends on how you structure the deal.

Investing does not work in my area - This is simply not true. There are investors that are making money in every city out there. Usually, the people who say this are the ones that only do wholesaling, or only do lease options. When market conditions change and those techniques are not as effective, they usually say that it doesn’t work anymore. The fact of the matter is that money can still be made if they would just alter their strategy. The real estate cycle is such that different techniques have different levels of effectiveness. So, as the market changes, your techniques as an investor should change with them. Money can be made in any market, with any market conditions when you adapt your strategy to market conditions.

With the economic situation right now, real estate is not a good investment because it is declining in value - First of all, not every area is declining in value. However, even if you live in an area that is declining in value, you can still make money! You can use techniques like sandwich leases where you are not required to purchase the property. This protects you if the market continues to go down. You can still wholesale deals since you are not even buying the property. Real estate is a great investment because in many areas, you can buy it at a larger discount than before. The whole point is that depending on the strategy you are using, you can make money in any market condition regardless of what is happening. It only requires changing your strategy.

Summary

I hope this article gives you some insight into the mind of an investor. Many people find reasons why they cannot be successful. The truth is that they could be successful if they would focus on finding a way to do it instead of finding reasons to question whether it will work or not.

Acquire the knowledge, training, and tools and you can also be successful in real estate. It will take some time, effort, and work on your part but the reward is greater than the investment.