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/

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What success stories give us is the inspiration to believe that we can overcome obstacles that are in the way of achieving our goals.
Here are just a few success stories that we found on the web. Hopefully they will inspire you to get started!

1. http://www.kiplinger.com/article/real-estate/T010-C000-S002-a-real-estate-success-story-justin-pierce.html

2. http://www.creonline.com/beginners-keep-at-it.html

3.  http://www.biggerpockets.com/forums/223/topics/115094-21-months-in-15-deals-either-done-or-in-the-pipe

4. http://www.flippinghomes.com/case-studies/

5. http://www.creonline.com/you-can-flip-houses-in-buyers-market.html

Got your own success story? Feel free to share it with us!

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

Or connect with us  

A few blogs ago we talked about becoming successful at investing in real estate. One of the key components we mentioned when building your REI business is setting goals.

We start with the question of “Why do you want to start investing in real estate?” The answer to this can be different for many people. Maybe you want to retire early. Maybe you want to plan that dream vacation. Maybe you are just tired of the daily grind and “working for the man.” All of these questions can be 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.

Financial Goals

On every flip, be sure to set a goal of how much return you expect. If you don’t set this how do you know your business is profitable?  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. In our area is is an attainable goal to make 10K to 15K on each flip. This of course would vary on region and market, but do the research for your area to know what to expect.

Leverage Goals

Think of  your real estate investment as an actual business. Don’t try to do all the work yourself. The goal is  not to have a second job but rather a second income. Make leveraging others to your advantage a goal. 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.

Also implementing a schedule will help you when leveraging other people’s time and yours. Having a set schedule will increase productivity on not only how fast your house is flipped but also on how your day is spent.

Why Goals Work

Part of being a successful real estate investor is having the investor mindset. Don’t say “I can’t do this.” or “I don’t know how.” Think “How CAN I do this.” If you think you are going to fail then unfortunately you probably will. If you educate yourself in real estate and how the whole process works you will be far more confident when working bids, choosing houses etc. Once you have that confidence, you will be able to envision yourself reaching your goals. Since education plus action is the key, Part-Time REI has a Flipping University to help you get started.

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