One of the most tried and true ways of building wealth is through real estate investing. No one knows this better than brothers Kelly and Chris Edwards of Raleigh, North Carolina. Since 2002 they have been able to take a single house and turn it into an $8 million nest egg. These guys started out with zero knowledge of how to invest in real estate. Here are their real life tips on starting your career in real estate investing.
Real Estate Investing Isn’t for Toe Dippers
If you are serious about real estate investing, you have to go all in and treat it like a real business. This isn’t to say that you don’t do your homework and plan your moves. Planning ahead of time is crucial but when it’s time to take action you have to be ready to invest whatever it takes with your time and money to make things work.
Learn From Others
The Edwards’ brothers sought out a mentor in their area to help them learn the business. This may or may not be an option for you, but they didn’t know their mentor before they asked. They found a person that had been successful in the real estate world and developed a relationship with him that still stands today. In order to get something from someone you have to be willing to give something in return. For the Edwards’ brothers it was working for their mentor for years before they went fully out on their own.
Make Smart Investments
Don’t invest just because something is for sale and you like it. Make sure the property makes financial sense. Will it bring you the cash flow you need to operate? If not, then don’t buy it. There will always be another house for sale. Patience is sometimes more important than action when it come to real estate investing.
Read, Study, and Learn
The Edwards’ brothers are big advocates on reading. They constantly read books written from others on real estate investing. They say that you can never stop learning. When you aren’t working on your investments, read and read some more on what to do and what not to do.
Temper Expectations
Don’t expect to get rick quick. Despite what late night infomercials say, you won’t get rich quick in real estate investing. It’s a tortoise and hare situation. Do a lot of smart and good things consistently and over time they will pay off. Don’t get in the game if you can’t afford to lose some along the way. Every deal isn’t going to go your way. Stay true to the course you’ve mapped out and chances are you’ll succeed.
Take Action
Don’t sit around and plan all the time. It is important to plan, but at some point you’ve got to take action. If you’ve planned properly then trust your instincts and go for it. You’ll never know what is going to happen until you do it.
Make Good Connections
Building a network of trustworthy contractors, lenders, and real estate agents are key to your success. This is your team of partners that will help get you to where you are going. Without this solid team of helpers you’ll be focused on details that you don’t need to be bogged down with. Finding these connections in the beginning will help you to keep your eye on the prize and be successful.