Happy New Year WealthBuilders family! I think I speak for all of us when I say I feel blessed for the turn of the year. Many of you find it challenging to make goals this year because it doesn’t really feel like a new year. Some of you are still struggling with business closures, financial troubles, or health scares. If that’s you, know that Becky and I are praying for you and your recovery. However, if you are entering this new year ready to make some changes and secure another stream of income, I’d like to offer some tips about entering the real estate market. Investing in real estate was the major catalyst of change in my life that brought me to where I am today. If you’re not sure what goals you should make this year, I encourage you to consider real estate. In today’s blog post, I’m going to give you some tips for beginners that will make your entry into the market as seamless as possible.
Beginner Real Estate Tips
Study the Market
The first thing you should do before pursuing any new endeavor is research, research, research. If you’ve never bought a house or looked into the real estate market, I encourage you to start here. Each city and state have different price points, taxes, and laws. It’s imperative you understand these things before you jump in. I encourage you to start the research on your own, but you should also be working with a good real estate agent, who will help you adapt to the market in your area.
Don’t get caught up comparing the real estate in your area to the real estate in other areas you have no intention of moving to. Comparison will give you an unrealistic idea of what you can do and purchase where you’re at.
Look at the Numbers
Once you understand the market in your area, you should begin to understand the formulas that will lead to success. In my real estate teachings, I always include the formulas that have led to success for me. These formulas are incredibly important, and whenever I work with a real estate agent, I make sure they know my formulas as well. The biggest risk in real estate is making a bad investment.
For instance, if you purchase a property to rent out, you should always get at least 1% of the purchase price of the home per month in rent. If rent in the area you’re looking to buy in fits that formula, then you could be in a position to make some cash flow.
Connect with Other Investors
While my real estate events are packed with actionable information, the biggest piece of feedback we always get is how powerful the networking opportunities are. When you attend one of my real estate events, you can connect with investors who are further along than you are who might be able to mentor you. You also have the opportunity to connect with investors at the same level as you. This particular relationship is powerful because it allows you to problem solve together. It also helps assure you that the problems you may face along the way aren’t unique to you. Finally, when you connect with investors who are less advanced than you are, you get the opportunity to teach. Teaching others is one of the best ways to learn, after all!
I always say you need to start with knowledge and understanding before you move to wisdom. This post gave you the tools and tips to begin your real estate journey as we go into the new year. What are some of your goals for 2021? Let me know in the comments below! You can find my real estate calculator, teachings, and free resources on my website.