Have you ever wondered how to get into real estate but felt like you didn’t have the resources or expertise to start? Many people delay becoming a real estate investor because they fear failure or think the process is harder than it is.

Fear will always keep you from moving forward, but the truth is there are proven, no-money-down, low-risk real estate investing strategies that almost anyone can implement. If you’re not quite ready yet, there is a straightforward process to prepare.

How to Get into Real Estate: First Steps

There are several different avenues for how to get into real estate, but for the purposes of this blog, we are going to outline one of the simplest ways–purchasing a personal home and using the equity to fund your first investment property.

1. Define Your Why

Real estate investing is more than just a wealth-building tool—it’s a pathway to financial freedom, flexibility, and impact. Whether your goal is to leave the 9-to-5 grind, create generational wealth, or make a difference in your community, knowing your “why” will keep you motivated through the ups and downs of investing.

So, what dream do you want to fund? What legacy do you want to leave? Take time to define your purpose because it will drive every investment decision you make.

2. Invest in Yourself 

Money is attracted, not pursued. To become a millionaire, you have to become a millionaire in your thinking first. If you have $10,000, the first thing you should invest in is yourself. Before you start playing with real money, gain wisdom from people who have gone before you. Learn from them, and avoid the mistakes they made. Read books, listen to podcasts, and consume blogs (like this one!) 

One of the best ways to invest in yourself is to attend conferences, seminars, and events with like minded, lifelong learners like yourself. The WealthBuilders Real Estate Workshop is an excellent opportunity to learn, network, and figure out the next step you need to take as an investor. We hold these power-packed, hands-on workshops twice a year. The next one is coming up April 25-27 in Denver, Colorado (and via livestream). Click here to learn more and register.

3. Save for a Down Payment

One of the biggest hurdles people think of when considering how to get into real estate is the down payment. However, this can actually be a relatively simple part of the process! 

If you already own your home, you can use the equity for a downpayment on an investment property (more on that later). 

If you’re renting, you’re already paying a monthly expense—but you’re not building equity. Instead, put that money toward your own home so you can start building wealth. There are programs like FHA and VA loans that offer first time homebuyers the ability to purchase a home for 0-3% down. 

Related: “How Much Do I Need for a Downpayment?” What’s Right for Every Type of Investor

Investment properties typically require a larger downpayment. Most lenders require at least 15-25% down for a conventional loan on a rental property. To start saving, create a dedicated real estate savings account and contribute a set amount each month. Cut unnecessary expenses, increase your income, and consider side hustles or freelance work. Additionally, some investors use creative strategies like house hacking—buying a multi-unit property, living in one unit, and renting out the others—to get started with less money upfront.

(Don’t want to raise a downpayment? There are several creative financing strategies you can use to purchase a property for little to no money down.)

4.  Improve Your Credit Score to Get the Best Mortgage Rates

Your credit score plays a crucial role in securing the best mortgage rates for your investment properties. A higher score means lower interest rates, saving you thousands of dollars over the loan’s life and increasing your monthly cash flow.

To improve your credit score:

• Pay off outstanding debt—especially high-interest credit cards.
• Make all payments on time.
• Keep your credit utilization low (under 30%).
• Avoid opening new lines of credit.
• Check your credit report regularly and dispute any errors.

If your score is below 700, focus on improving it before applying for an investment loan. Some lenders require at least 720 for the best terms. A better score means lower borrowing costs, increasing your overall return on investment.

5. Use Your Home Equity to Finance Your Next Property

One of the best ways to finance your first investment property is with a home equity line of credit (HELOC). This allows you to borrow against your home’s equity to fund real estate purchases.

Benefits of a HELOC:

• Lower interest rates compared to personal loans or credit cards.
• Flexibility—you borrow only what you need and pay it back at your own pace.

However, defaulting on a HELOC could lead to foreclosure, so it’s crucial to research before using this strategy. Used wisely, a HELOC can serve as a down payment for your first rental property.

With that, keep reading for 10 more dynamic tips for new investors to keep in mind as you build your portfolio. Our team also created The Ultimate Real Estate Investing Checklist to help streamline your process. Simply fill out the form to receive your free copy.

10 Dynamic Tips for New Investors

Once you own your home and start investing in rental properties, you can really get the ball rolling. But to succeed in real estate investing, you need to be strategic. Here are 10 essential tips to help you make smart investment decisions, minimize risks, and maximize profits.

1. Before Purchasing, Ask: “What Will It Rent For?”

One of the biggest mistakes new investors make is buying a property without understanding its rental potential. A general rule of thumb is the 1% Rule—which suggests that a property should rent for at least 1% of the purchase price per month.

For example, if a home costs $300,000, you should aim to rent it for at least $3,000 per month. This ensures you cover expenses like the mortgage, insurance, property taxes, and management fees while still generating positive cash flow.

Additionally, research rental demand in your target area using platforms like Rentometer, Zillow, and Craigslist to validate your estimates.

2. Buy Properties Within 3-4 Times the Median Household Income

If a home’s price is significantly higher than the median household income in the area, local tenants might struggle to afford the rent. This can lead to long vacancies or rent concessions, lowering your returns.

For example:

• If the median household income in a city is $75,000, the ideal purchase price for an investment property would be $225,000 to $300,000.
• Use websites like U.S. Census Bureau or local real estate reports to find income data for your chosen market.

3. Use Local Banks for Financing

Many new investors assume they must go through big banks for financing, but local banks and credit unions often offer better options.

• Large banks sell your loans to Fannie Mae and Freddie Mac, which limits how many mortgages you can have in your name.
• Local banks, however, portfolio loans—meaning they keep the loans in-house and are often more flexible with financing terms.

Many investors find success working with regional credit unions and small community banks that cater to local real estate investors.

4. Build an All-Star Team of Professionals

Real estate investing isn’t a solo game—you need a strong network to succeed. Your team should include:

• Real Estate Agent – Specializing in investment properties, not just residential sales.
• Property Manager – Handles tenant placement, rent collection, and maintenance.
• Lenders – Mortgage brokers and local banks for financing deals.
• Tax Advisor/CPA – Specializing in real estate tax strategies.
• Real Estate Attorney – Ensures contracts and LLC structuring protect your assets.

A key tip: Only work with professionals who invest in real estate themselves. They’ll have firsthand knowledge of what works in the field.

5. You Make Money When You Buy, Not When You Sell

Many beginners think they will profit when they sell a property, but the real money is made at the purchase.

• The goal is to buy properties below market value, allowing for built-in equity from the start.
• Strategies like foreclosures, off-market deals, distressed sales, and motivated seller negotiations can help secure a great deal.
• Consider the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) to grow your portfolio without tying up too much capital.

6. Buy in the Right Neighborhoods (Not A or F, but C-D Neighborhoods)

Choosing the right neighborhood can make or break your investment.

• A Neighborhoods: High-end, luxury areas with expensive properties but low rental yields.
• B Neighborhoods: Middle-class suburbs, offering stability but higher prices.
• C + D Neighborhoods: Affordable, working-class areas with strong rental demand and good cash flow.
• F Neighborhoods: High crime, declining property values, and unreliable tenants—high risk, low reward.

For beginners, C-Class properties provide the best balance between affordability and profitability.

7. Short on Cash? Use a Fix & Flip to Fund Your Next Rental

If you’re struggling with cash flow, one strategy is to flip a property and use the profits to invest in long-term rentals.

• Fix-and-flip deals involve buying undervalued properties, renovating them, and selling for a profit.
• On average, a well-executed flip can generate $20,000 to $50,000+ in profit, enough to cover a down payment for multiple rentals.
• Look for properties that require cosmetic upgrades rather than major structural repairs to maximize ROI.

8. Have Multiple Exit Strategies

Successful investors always plan multiple ways to profit from a property. Here are four common exit strategies:

• Long-Term Rentals – Traditional leasing for consistent passive income.
• Short-Term Rentals – Airbnb, executive rentals, or vacation homes for higher daily rates.
• Fix & Flip – Buy, renovate, and sell for a one-time profit.
• Lease-to-Own – Allow tenants to buy the property after renting for a few years.

The more exit strategies you have, the less risk you acquire.

9. Protect Your Investments: Never Own Properties in Your Personal Name

Real estate comes with risks, and owning rental properties in your name exposes you to liability. Instead:

• Set up an LLC (Limited Liability Company) to own each property.
• Create an LLC tree structure, where each property or every few properties have their own LLC, all owned by a parent LLC or trust.
• This protects your personal assets in case of lawsuits, tenant disputes, or creditor claims.

Additionally, umbrella insurance policies can provide extra protection for a small annual cost.

10. Remember Your Why & Stay Motivated

Real estate investing isn’t just about making money—it’s about making a difference and leaving a legacy.

• Set clear financial goals (e.g., retire by 45, build a $10,000/month passive income).
• Stay disciplined and keep learning through books, podcasts, and mentors.
• Trust God’s plan for your success: “If God is for us, who can be against us?” (Romans 8:31)

Do you want to create passive income, reach financial freedom, and build generational wealth God’s way? Real estate investing is an excellent way to step into biblical abundance and fund your God-given dreams. You’re invited to join us at The WealthBuilders Real Estate Workshop, April 25-27th, in Denver, Colorado, or via livestream. This is the premier event for Christian real estate investors to receive economic insights, cutting-edge strategies, and the specialized knowledge they need to move to the next level. Click here to learn more and register!