One of the best ways to learn a new trade is to talk with people who have been there and done that. By listening to successful investors and their experiences you can avoid some of the pitfalls that might otherwise derail you. In addition you find out that everyone was a newbie at one point and went through the same mental hardships that are staring you in the face.
About the Investor:
Dave T has been investing for over 13 years down in South Carolina. He regularly contributes to the reiclub forums and posts under the same name. I, as well as many others have been helped by his advice and I know you will too. Dave also runs the Property Flip Store where he posts industry news as well as helpful articles about flipping.
What was said:
For beginners, what should they focus on when first starting out?
Develop written goals and the action steps you need to take to achieve those goals. The action steps become your investment plan.
The plan should include your purchase criteria, how you will analyze a candidate property, identify potential exit strategies, and how you will do marketing.
Network with your real estate investment peers and work with a knowledgable investor through your first couple of deals.
What was your biggest challenge when you first started?
When I first started out, thirty years ago, there were no REIA groups, no mentors, no creative investing techniques. I learned everything I now know in the school of hard knocks without a scholarship.
Not knowing what I needed to know about mortgage financing, PMI, and how to do a cash flow analysis probably let me make a few mistakes. My biggest investment mistake was a property I did not do due diligence on. If only I had known what to do and how to do due diligence, would have saved me a lot of money.
3) How long did it take you before you started seeing results from your hard work, and why do you think you saw results at that point?
How long it takes to see results depends upon your specific niche and the amount of effort you exert in the business. No one else’s results will be meaningful, just your own motivation. Real estate investing is not a lazy man’s way to riches. It does take hard work.
Who did you learn from?
When I first started out, I worked with a new real estate agent. Probably a mistake that the agent was not more experienced, but I think I got more out of our working relationship because I learned alongside the agent.
What one piece of advice would you give to a new investor?
Read everything you can get your hands on about real estate. Pick a niche and focus on that one niche. Become an expert in your niche. Once you have mastered one niche, you may choose to broaden your investment strategies to encompass other niches, but tackle each new one, one at a time and become expert before taking on another niche.
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As a newbie in the industry, your post is of great help. And may I just add that you may browse websites that will offer you information, videos, and training on real estate. I suggest http://reiwired.com and http://rehabhardmoney.com more information.