1.) Don’t Forget to Do Your Homework
Not many people naturally know about investing in real estate. That is one of the reasons we exist; the help educate future investors on how to actually invest part-time. Don’t jump into something you know nothing about. Do your homework. Know what you are getting into. Flipping is not as easy as the TV shows make it look. Just because you saw it on TV, you read it in a blog post, doesn’t mean you are Barbara Corcoran from Shark Tank okay?

So take the time to learn your craft, do your homework, read the books, listen to the Podcasts, and check our our Flipping Houses University while you are at it.

2.) Do Research Your Farm Area

What is your poison? Do you like single family houses, multifamily, or commercial. What ‘s profitable in the area you plan on making your farm area? Is it better to flip, buy and hold, wholesale, or is land-lording the way to go in your market? These are all good questions you need to check into. Also make sure if you do not have your real estate license that you get a good Realtor on your investing team. She can help you find comps to potential investment properties and furthermore help you research pricing and rent levels.

3.) Don’t Invest in Something You Don’t Understand

This kind of goes back to the #1 rule when investing in real estate. If you try to invest in something you don’t know, how can you be successful? To quote the most successful investor we can think of, Warren Buffet, “Never invest in a business you can’t understand.”

We would be wise to adhere to Mr Buffet’s words of wisdom. If you don’t get it, then maybe flipping houses isn’t your retirement plan after all.

4.) Do Surround Yourself with Like Minded People

One of the best ways to learn about investing in real estate is to surround yourself with successful investors. Ask them questions, a lot of questions. Go to networking events. Join an online chat room about flipping houses. There are also plenty of cities out there that have REI groups that you can join and get the investor mindset.

Be sure to check back next week for Part 2 of The Do’s and Don’t of Investing.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us  

You don’t understand the comps in the area

Don’t be that guy. Research your farm area and learn what a house with your amenities goes for in the area. Never invest in a property without understanding the comparables yourself . Make sure you are comparing apples to apples so to speak. Unless you yourself are a Realtor, the real estate agent you hire is of course going to present to you comps that put a smile on your face. Do your home work though and analyze the numbers on not only what they selling price should be but also any rentals in the neighborhood as well.

You fall  for the get-rich-quick  scheme

If it looks like a duck, and sounds like a duck, it is probably a duck. Just like if a deal sounds too good to be true, it probably is. There are so many Ponzi-type schemes out there it is sometimes hard to tell what is really a deal of a lifetime.  Again, educate yourself on what is out there. Investment groups offering ridiculously high returns on your investment? REI guru that will tell you all his secrets for half your savings? Keep walking.

 You are confused on cash flow and what “could be”

Make sure you understand what the current property cash flow is and what it could be after the rehab. Never invest based on speculation. Just because the seller is asking more for it because a mall is going up across the street is not a sure investment. Time and time again projects will start and get delayed or never finish.  The value of the speculation home could take a nose dive and the loan amount not be recouped by the now lower reasonable rent  amount you can ask. Make sure that the Wholesalers and realtors  you are talking to are not touting rental properties based on current cash flow without accounting for future rehab. Ask yourself what the cost of  gaining the attention of a new renter or buyer.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us  

1.  Educate Yourself

You should have a plan for how you intend to learn about flipping houses. Just like any industry, real estate investing is constantly moving forward. You don’t have to be a Realtor to flip houses, but in some states there are specific requirements for real estate agents to take continuing education. As an investor, you should be doing the same thing. This can be anything from reading blogs, attending workshops, online seminars, or training courses online. Also stay on top of your market. By researching new opportunity you will stay apprises of what’s going on in the real estate marketing.

2. Set Goals

Why do you want to start investing in real estate? When do you want to retire? What is your dream trip? All good motivators to achieve  the place in life you want to be. Clear goals implement clarity.  Along with a goals, setting a clear schedule will compliment your structured goals. This includes financial goals.  Without specific financial goals, you’ll find it difficult or impossible to correctly analyze potential real estate deals. Investors flipping houses typically set a purchase price goal of 30% below market value after repairs.

3. Network with Successful REIs

Speak with fellow real estate investors. Join REI groups in your city. Here you can meet other investor minded individuals like wholesalers and contractors that can help you along your journey. It is essential that you connect with those who have more experience in order to get good advice. Make sure they align with your goals and strategy. Attend club meetings on a regular basis. Join online real estate forums like Bigger Pockets and read up on successful investors to see what they might be doing that you are not.

4. Learn from your Mistakes

Don’t make this mistake. Instead learn from others’ mistakes. Even the most experienced investors make mistakes. When a deal is less profitable than you intended it to be, take the time to make a thorough analysis of what went wrong.  Ask questions on real estate blogs to investors like what mistakes they made along the way and how they avoid those mistakes today. For a list of most common mistakes to avoid check out our blog on Why Flippers Fail.  

5. Implement Leverage

Think of  your real estate investment as an actual business. Don’t try to do all the work yourself. The point is not to have a second job but rather a second income. Become an investor. Learn to  LEVERAGE other people’s time to achieve your goals. Contractors, Realtors, wholesalers –you name it. Your goal is to invest in real estate not spend your spare time remodeling a house.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us  

But where to do you start? One of the questions asked time and time again on the forms is “What books do I read when staring out in REI?” Here at Part-Time REI we believe in educating yourself, and reading up on the subject matter is a great place to start. So we took our coaches top picks along with some of the top real estate investing books lists out there and comprised a list of 10 great books to read when investing in real estate. Spoiler alert, you probably won’t find many of these on the New York Times Best Seller’s List…or will you?

1. Rich Dad Poor Dad By Robert T. Kiyosaki

2.The Unofficial Guide to Real Estate Investing by Spencer Strauss

3. The Book on Flipping Houses by J. Scott

4. The Millionaire Real Estate Investor by Gary Keller

5. Landlording on Autopilot  by Mike Butler

6.The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss by Ken McElroy

7. The Richest Man in Babylon by by George S. Clason

8. Fixing and Flipping Real Estate: Strategies for the Post-Boom Era  by Marty Boardman

9. Midas Touch: Why Some Entrepreneurs Get Rich – And Why Most Don’t by Donald J. Trump, Robert T. Kiyosaki

10. FLIP: How to Find, Fix, and Sell Houses for Profit by Rick Villani  and Clay Davis

We hope this list helps you if you are just starting out or if you are a seasoned veteran of flipping houses, maybe some of these books will help you brush up on your flipping skills. Either way we would love to hear your feed back. Also be sure to check out our Flipping Houses University for a plethora of tips and advice on staring out in REI.

To learn more about Part-Time REI visit us at http://part-timerei.com/

Or connect with us