Where Do I Start in Real Estate Investing

Start with what you know and what you’re good at!

To get started in real estate investing, the best thing you can do is match your current skill set and likes to the business model that most closely resembles that.

How to Determine Which Business Model Matches Your Strengths and Weaknesses . . . .

Let’s face it, you don’t want to get into real estate investing to spend your days doing stuff you hate, or frankly, suck at, right? And you don’t want just another J-O-B. You want fun, freedom and financial benefits!

While there are numerous tools that you can use to figure out what you’re good at and what your strengths are, some general soul searching and asking yourself the right questions can help you evaluate your strengths and weaknesses as objectively as possible?

Here are a few to help you get started . . .

1. What do you do every day (or wish you could be doing)? – Most people tend to spend time on the things they like to do more than the things they do not like to do. It’s often the struggle between the two that causes strife, not the activities. If you find yourself easily making time for activity A but avoiding activity B all the time that tells you something. People gravitate toward things they’re naturally good at doing.

2. What do other people think you do well? – The people around you likely have an opinion about what you are good at and what you’re not good at. Ask them. Ask your best friend(s), siblings, parents and co-workers what they think you’re good at. Sometimes what people believe you’re good at is a little different from your own opinion. It doesn’t mean either are wrong, but if that happens, you should try to objectively identify why the difference in perception. If you hear the same things from a couple people, maybe they are on to something!

On a side note here, tell them you want complete honesty and it’s okay to tell the truth because this is about your personal development.

3. What do you like to talk about? – Usually, most people find themselves talking about the things they are good at doing and love to do. Now, occasionally you will find yourself focusing on negativity and talking about the things you dislike, hate, or are failing at. Those things are important to note, too. But if something makes you feel especially good, then you’re likely good at it and like it. That’s a very important thing to note.

4. What skill set feels so comfortable to you that you could do it in your sleep? Often, you’ll realize that you often do the same things over again and it’s just a part of you. If it’s a part of you that you like and enjoy then where could that fit in?

When you ask yourself and others these questions, take notes – write it all down so that you can analyze it. It’s likely that you will clearly see both your strengths and your weaknesses within the answers.

Now, let’s look at how to figure out which business model matches those strengths.

More specifically, we’ll be looking at various business models and talking about what the day to day involves so you can ask yourself, “does this match my strengths?”

As a quick reference guide, in my facebook group, “The Ins and Outs of Creative Real Estate Investing” I have a document in the file section called, “Decision Matrix” that details out the pros/cons of each model and what skill sets are important for each.

Let’s look at some quick examples:

Wholesaling – sounds easy and exciting. You don’t need any money to get started and people think it’s easy money, but this model really has NOTHING to do with real estate investing. At it’s core it’s marketing and negotiating. The commodity IS real estate, but the day to day “work” is marketing and negotiating.

So . . . if you hate negotiating and know NOTHING about marketing, this may NOT be the place for you.

Rehabbing – sure, it looks sexy on those tv shows, but the #1 skill set for rehabbing is project and people management. If you are unorganized, struggle to stay focused, follow a schedule and get tasks done ON TIME. You may want to shy away from rehabbing/flipping.

Owning Rentals/Being a Landlord – yes, the idea of renters paying off your mortgage and leaving you with a paid asset in 30 years is the dream that wealth is made of, but . . .

owning rentals means finding good tenants and setting clear expectations and often, confrontation with people who don’t pay their rent on time.  If you aren’t a people person and don’t like confrontation then, you’re probably NOT going to like landlording.

Are you getting the idea here?

Now it’s time to dig deep.  Take a look at YOUR strengths and weaknesses, along with your likes and dislikes (they are probably similar) and download the decision matrix to help you match a model that you can excel at, profit from and ENJOY along the way!