4 Things To Do Before You Start Investing In Real Estate

1. Read books to learn the basics. Real estate is a HUGE industry. Not only does it encompass a variety of different niches, but it also includes a myriad of jobs, investment roles, and moving parts. Although the industry itself can be lucrative for many people, it can also be a source of disdain and loss for others. In order to ensure that real estate is the right industry for you (and increase your chances of actually making money instead of losing it), it’s essential that you educate yourself. Learn about the different forms of real estate investing. Study the pros and cons of each type and determine which one would be best for you. If you’d like a more comprehensive guide, you can always check out podcasts and webinars on Bigger Pockets or read books like the ABCs of Real Estate Investing.

2. Start networking to meet people in the industry. Once you’ve become educated on the different types of real estate investments, you should start meeting people. Although you may be very skilled and successful in your own right, real estate is a team sport. As you start to network with others, you’ll learn from their mistakes and achievements which will help you gain more experience. As you continue to interact with people in various settings you’ll gain access lucrative deals and other investments as well. When I started going to real estate meetup groups, I learned about other areas of real estate that I never even considered and got invited to invest into deals I wouldn’t have otherwise known about. Plus, I started to meet people with different skillsets and now have a list of people I can call on for a variety of homes to purchase or sell. I can also find contractors, maintenance men, or interior decorators quicker. In other words, real estate investing is much easier because I’ve met so many different people and groups that have helped increase my chance of success.

3. Listen to podcasts to stay up to date. One of the things that has really helped me over the last few years is podcasts. Although I prefer to learn new information from books and blogs, podcasts are essential for me as well. They reinforce information I may have learned and forgotten from awhile back. They also provide new perspectives on topics and deals that I may not have considered myself. Plus, they help me stay up to date on current information and interview other successful investors which helps me learn from the experiences of others. For example, it was through a podcast that I gained some insight on different ways to invest in real estate without actually getting a mortgage from the bank. It was through podcasts that I learned how other people started investing in single family homes and were then able to scale up to apartment buildings. It was also via podcasts that I learned which type of investments would take more or less of my time and which ones provided more profit in tax-free ways.

4. Join communities to meet other like-minded people. Along with networking with others, reading books, and listening to podcasts, you must do one more thing: surround yourself with like-minded people. It can be very easy to make a goal, but oftentimes it can be difficult to consistently do the work needed to bring those goals into fruition. One of the things that have helped me is joining communities of like-minded people. Whether that’s going to real estate meet up groups or becoming active in online forums, surrounding myself with people who have similar goals and interacting with them consistently has helped create accountability in my life to keep me focused and committed. These communities have also served as a place of inspiration and encouragement to keep me on track. In fact, I’ve had several people that have been gracious enough to hear various ideas of mine and offer their feedback and guidance on what I could do to bring it into fruition, they’ve even connected me to other experts in the field.

My point? If you’re thinking about investing in real estate, it’s essential that you read books to learn the basics, start networking with people in the industry, listen to podcasts to stay up to date and join communities of like-minded people.

What it was like attending my first real estate meetup group

I’ll be honest. When I showed up to my first real estate meetup group in Atlanta, GA I was extremely nervous. I was still fairly new the world of real estate and didn’t quite know what to expect. The idea of going to meetups was first suggested to me by some real estate blogs and other investors I was following online. Many people mentioned them as a great way to make connections with like-minded people who could help me reach my goals faster. I didn’t have much to lose by checking out the group, especially since it was free, but as I pulled into the parking lot, I was definitely nervous. Normally I’m pretty fearless and assertive but moments before I walked into the meeting there was a small voice of doubt I had to suppress and a glimmer of courage I had to cling to in order to actually walk into the meeting. Here are 5 things I was thinking during the meeting:

1. “There aren’t a lot of people who look like me.” When I entered the room, one thing became immediately apparent – there weren’t many people who looked like me. As I scanned the room, I quickly noticed that it was dominated by white men. As an African-American female I stood out like the lone chocolate chip in sea of vanilla. The demographics weren’t exactly shocking to me, but I’d be lying if I said I didn’t feel out of place initially. About 5 minutes later a couple women walked in the meeting. Soon thereafter, the room became a bit more diverse and I became a lot more comfortable.

2. “Wow. There is a lot I don’t know.” The meeting started with an introduction and quickly transitioned into a deep-dive on how to flip houses in a cost-effective manner. I found the material interesting, but several of the details were a little above my head. Although I knew some of the basics, many of the terms have subtle differences which can be a bit tough to keep straight for anyone who isn’t as familiar with the vocabulary. Understanding the difference between an Internal Rate of Rate and the Cash-on-Cash return, definitely caused me a bit of confusion. At first, I was alarmed, but as I continued to sit there and listen to the speaker, things started making a little more sense. I didn’t grasp everything, but I understood a good portion of it and certainly gained more knowledge than I had before I walked into the meeting.

3. “The people here are really smart.” For the second part of the meeting we split into smaller groups of about 10 people. We then introduced ourselves and spoke about our previous real estate experience and our current real estate goals. It was during this session that I was literally blown away. As people introduced themselves, it became obvious that the majority of these people had years and even decades of real estate investing experience. Some of them mentioned previous deals and spoke about things they did to save money on costs and increase profits. I was amazed.  

4. “I’m making a lot of connections.” When it came time for me to introduce myself, I decided to take a leap of faith and be honest. Despite the myriad of investing experience that surrounded me in this group, I opened my mouth and admitted that I hadn’t actually started investing in real estate yet. I mentioned that I was, at that time, still a medical student who had a desire to use multifamily real estate investing to achieve my goal of financial independence. Much to my surprise, they didn’t judge me or give me condescending looks of disapproval. Instead, they all applauded my honesty and were extremely encouraging. Several of the investors told me stories about how they found their first deals, different ideas for how to find capital (aka using other people’s money to fund your deals) and a few even offered to walk me though the process. Going to this meeting helped me make several different connections that proved to be extremely valuable.

5. “I’m really glad I went.” Despite the initial nerves, feelings of being out of place, and the realization that I was amongst people who were way more knowledgeable than I was, I am so glad I went to that meeting. Not only did I learn a lot, but I also connected with several people that I never would have met otherwise. Overcoming my fears of going to that meeting, gave me the courage to go to even more meetings. Before I knew it, I became a regular attendee and gained access to exclusive deals and financing opportunities only reserved for people with certain connections. As the old saying goes, “To achieve something you’ve never obtained, you must do something you’ve never done.” Going to my first real estate meetup was a testament to this. Although my life as a resident physician working up to 80 hours a week can make attending these meetup groups a little challenging, I still go when I can and have never regretted it.