Real Estate investing is a great opportunity for any person, regardless of background, education, or financial resources, to make it big and build real wealth. How is this possible? According to Erin Helle, real estate investment expert and coach, even if an investor has very little capital, they can leverage bowered money to yield a powerful return. Investors can borrow money from the bank, private lenders, or friends and family.
Don’t assume that real estate investing isn’t possible for you simply because you don’t have a lot of money yourself, or access to wealthy friends and family. According to Erin, in just a few crucial action steps, anyone can be on their way to investing in real estate.
Step 1: Figure out what it’s all for
Everyone has different motivations for wanting to build wealth and different definitions of financial freedom. Figure out what fires you up, what motivates you when things get hard, and what financial freedom really looks like. According to Erin, “if you can really imagine this, and visualize what you want your life and your future to look like, you can begin to manifest even your wildest dreams by investing wisely in real estate.” As you paint a clear picture, set goals that will incrementally lead to your success.
Step 2. Get Out of Debt
Before you consider taking on a mortgage, Erin advises that individuals take care of their personal debt, i.e. car payments, student loans, credit card debt, etc. Being responsible with your own money is essential to managing and leveraging other people’s money.
Step 3: Start Saving
Once you’ve taken care of your debt, start saving your money! While it’s not necessary to have a lot of capital to start investing, chances are you may need more reserves than you had planned for. Furthermore, if you want to build real wealth, saving and living within your means is a great place to start!
Step 4: Educate Yourself
Depending on your goals and timeline, this may mean listening to podcasts, reading books, or even finding a mentor or coach! Before you invest in your first property, you must invest in your personal education. Educate yourself on all the ways you can achieve your goals and become familiar with the different real estate investing strategies that can accommodate them.
Step 5: Figure out how you’re going to fund your dreams
Different properties fit different strategies, and loan products. You must have your own goals in mind before you ever pursue a loan from the bank, private lender, or individual, and you must have a plan for the property you are looking to purchase. Erin focuses on the various strategies and funding options on her coaching platforms and believes that understanding the options and getting creative on applying them to deals holds immense power in the industry.
Step 6: Make An Offer
Your first offer should be well-planned and strategic, but don’t spend too long dwelling on it! You will never see success if you don’t take action. Chances are, your first offer will be denied. This is all part of the learning process and will leave you better prepared to assess, analyze, and make the right offer next time.