Jason Hartman bought his first rental property when he was only twenty, so we’re confident that you can too! But it can feel overwhelming and impossible in the early states. There’s a lot of advice out there, and a lot of it is great—but a lot of it is bad too. We recommend looking at the Ten Commandments of Investing to give you a solid foundation—but we’ve got a few tips and tricks now.
First, know that real estate investment is a lifelong strategy for building wealth. It’s not going to make you rich overnight, and you’ll probably make some mistakes. Think about it before jumping in—but then be prepared to make passive income for a lifetime!
We’ve talked about it before, but you don’t have to be an expert to get into investing. It’s a big industry, and you certainly don’t have to specialize in every part of that. There are plenty of experts who can give you tailored advice, so don’t feel pressured to know it all. Do your research though—having a knowledge base from which to work is helpful. Search the internet for useful blogs, podcasts, and online seminars and develop a real estate vocabulary that will make you sound like a professional.
Consider connecting with other real estate investors, especially those investing in the areas you are looking at. Pick their brains and look at their properties. Learn from their mistakes.
Be creative in funding your attempts to invest and increase your personal wealth. Approach investment by asking how you might accomplish something instead of simply accepting that you can’t. You may have to sacrifice other things, but you can make it happen. Ultimately, you’ll be able to afford the luxuries you desire. Short term sacrifice for long term rewards. Write it all down—your goals, how you’re going to accomplish them, what you’ll do once they’re achieved. Having a plan in writing makes it more likely that you’ll be able to achieve it.
If you have a day job, don’t quit it just yet. Income properties are great sources of extra income, but (especially if you’re just beginning) shouldn’t account for your primary income. Remember that your property or properties are a business—as such, keep them organized, clean, etc. Think of yourself as a business owner and act accordingly. It isn’t a hobby or even a job, but you certainly own the business.
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The Young Wealth Team