Many of my peers are beginning to find interest in Real Estate. Now that the college years have passed, millennials want to find ways to make their money work for them, instead of just throwing it down the well that is Old Town, Scottsdale. The problem is, no matter how much ambition you have, education outweighs all. You’re a newbie, and that’s okay, so am I, we all are.
When I say “Newbie,” don’t get offended. Real Estate is a very diverse industry, with a tremendous number of avenues that your career path or investing ventures can take you. The purpose of this post isn’t to guide you on what path is best for each individual. Nor is it going to teach you to get rich quick (if that’s why you’re in Real Estate, you should probably just run away now). Don’t get me wrong, real estate is very profitable; and at 22 years of age, I can proudly say I have found ways to be successful in it, even as a beginner. The problem is that it’s tough to figure out where to begin.The real purpose of this post is simply to help educate my peers entering this industry on what to expect and what recourses are available. So here we go.
Let’s say you just graduated and have an interest in a career in real estate, or just know that investing in real estate will be a good side hustle for you. Here are some of the first steps you should take:
1)Call a mortgage broker
Find out what specific kinds of loans you could qualify for; whether that’s an FHA loan (if you plan to live in the property for the first year), or a conventional loan (typically requires 20% down payment or higher). Make sure to get a pre-qualification letter to speed up the process when it comes time to make an offer on your first
property. It is essential to talk to a professional lender in order to understand all the state and city programs that can give you assistance, such as the “Home in Five” program (down payment assistance to your loan). Learn about all the positives and negatives that come with your loan options.This will not only help tremendously with your investment but also provide you with valuable knowledge on the financing process. Trust me; financing is one of the most crucial parts to understand.
2)Finding the right agent
A qualified and trustworthy agent can be your
best recourse, or a complete waste of both your time! Please, don’t ever just go to an agent and say, “I want to find a property to invest in or flip.” That my friends is an excellent way to not be taken seriously or just be hung-up on. HAVE A PLAN. Before you call, know what kind of properties you pre-qualify for and what types of properties specifically you are interested in. Do you want to invest in single family or multi-family residential homes? What zip codes are you interested in? What is your budget? Have a strategy, formulate a plan and get after it.
3)Find a Network
At a young age, the most important thing is that you need to grow your network. Surround yourself with people who strive to succeed in the industry you’re passionate about, and also people who are already successful. Something that I found worked extremely well for me when starting my own business was merely looking people up on LinkedIn in my industry and asking them to talk on the phone or meet for coffee. The worst thing that happens is they either say no, or just don’t respond. So many people are willing to share their knowledge, you just have to have the courage to get yourself out there and ask the right questions.This is imperative. You WILL NOT survive on your own little ship. The pond is too big. You’re on a dingy, and they have yachts. So, build relationships! The best recourses I have found so far is biggerpockets.com. Along with that, you can discover a lot of really great podcasts, such as “The Real WealthShow”. Join local clubs, such as AZREIA, and start to read the Phoenix Business Journal for local market info. These recourses will not only help you meet new people and grow your network, but will also provide you with the proper knowledge to get started in this constantly evolving industry.
There is so much more you need to know, but I felt that these 3 basic topics could really help jumpstart your understanding on where to begin. I hope it helped.
Affronti Property Solutions, 3rdGen Realty Investments, LLC