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The real estate edition
Welcome to this week’s issue The Un-Normal Investor. Each week, I publish one 5-minute read that’s written to make you a smarter real estate investor.
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If I could rewind time, here’s how I would get started as a first-time real estate investor:
Step 1: Choose My Model
The very first thing that I’d do is nail down my model.
One of the biggest - most common - mistakes that early-stage investors make, is that they fail to commit to a specific strategy.
They try to learn everything there is to know about AirBNB operations, while also binging YouTube content on mid-term rentals and rooming houses.
This is a recipe for disaster.
The truth is: There’s countless ways to make money through real estate.
But the key is: To choose the simplest strategy that will achieve your desired outcome.
Real estate is a long game.
You’ll have plenty of time to learn all of the different tricks of the trade.
But when you’re just starting out, you should avoid spreading your knowledge, resources, and capital too thin.
It’s far better to settle on just one strategy and go deep.
Step 2: Pick My Market
Once I’ve landed on my investing model of choice, I’d focus all of my efforts toward market selection.
Along side the laundry list of different investment strategies, is an even longer list of locales to choose from in which you can place your capital.
Where you ultimately plant your flag will often come down to a blend between budget and opportunities.
If you reside in an expensive market that has limited deal flow, you may not be able to park your money in your own backyard.
Your search could lead you to the Midwest or Southeast Sunbelt where your dollar goes a bit farther and inventory is more robust.
Regardless of which market you end up committing to for your first deal, try your best to identify the best and worst parts of town as quickly as possible.
Bad neighborhoods can tank even the best deals.
Step 3: Pull the Trigger
After I’ve gained clarity on my How (strategy) and Where (market), I’d concentrate on executing.
This is where a lot of early-stage investors get stuck.
They know what to do and where to do it, but for whatever reason, they fail to pull the trigger.
I believe this is largely due to first-time jitters.
Once you step from behind your computer screen and actually begin walking properties in person, the numbers on your spread sheet become more than just napkin math.
And the thought of betting your hard earned money on a real estate play can be scary.
It’s normal to have reservations when making such a large investment.
But I implore you to foster confidence from the knowns, rather than allowing the handful of unknowns to intimidate you.
No matter the curve ball that comes your way, there is a solution for each and every issue that may arise.
That’s it.
These are the 3 simple steps that I’d take in order to secure my first investment property.
It goes without saying, there’s a ton of additional steps that come before, after, and in between the 3 that I’ve listed here.
But that’s ok.
As an early-stage investor, you shouldn’t cloud your brain with the burden of thinking through thousands of scenarios that have yet to arise.
You should remain clearheaded and tackle each obstacle as it comes.
If you’re normal like the rest of us, and a bad case of cold feet has gotten in the way of you taking down your first deal, feel free to send me a message or leave a comment.
Always happy to answer any questions, or give a quick pep talk to help restore your confidence.
What’s your take on today’s topic? Do you agree, disagree, or is there something I missed?
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