Getting began with actual property investments
I’ve said it before and I’ll say it again: real estate investments are part of it the best ways to achieve financial freedom. Not only does it provide consistent, relatively predictable cash flow, but when done right, it can be very passive.
Of course, it can be daunting at times to take this first step, to say the least. I understand that very well; I was frozen in inactivity for quite a while before making my first investment. Fortunately, I finally took that step and it has been a great journey since then.
If you’re interested in that first investment, and are like me, you’re probably wondering how just start. Where do you start with all of the options?
That’s the purpose of this post: to help you take that first step on your real estate investment journey. Whether you need direction or just some extra motivation, I hope this can be a starting point.
Determine your why
This is a step that most people never really consider. But I cannot emphasize enough how useful it is to sit down and really evaluate your purpose in pursuing financial freedom.
Ask yourself these questions and give honest answers. If you can write them down, even better.
- What will my days be like when I’m financially independent?
- How quickly do I want to achieve this goal?
- How does financial freedom affect me and my family?
- Do I want to continue working?
- How much passive income do I need to cover my current expenses?
Answer these questions specifically. It may take a few moments to sit back and actually visualize the question before an answer comes. For example, the answer to the question “What will my days be like when I’m financially independent?” could be:
I will not spend more than four hours a day at work. I will pursue a hobby that I have put off and spend more time with my family. I won’t be stressed out and worried about work because my passive income streams meet my basic needs.
You can of course write what you want, but the more specific the better. The point is to put a specific endpoint in your head so you always know what you are working towards.
Define your goals
The next step is the most important of all. Now that you’ve determined why you want to achieve your goals, it’s time to actually define them.
Take some more time with a pen and write it down. It’s really something about putting words on paper that makes them more specific.
Take your visualizations from the previous step and do a single paragraph. For example:
I’ll keep working, but only for half of my normal hours. I will have a total of $ 20,000 monthly passive income within 10 years. It allows me to spend more time with my family and more time doing what I enjoy.
This is a good goal because it is specific, measurable, achievable, relevant and time-bound (SMART– Read more about it here).
The reason these first two steps are so important is that they always keep your goal at the forefront of your mind. If you set off with a clear goal, the more likely you will achieve it.
With this step, the journey begins in earnest. Of course, in order to achieve your goals as efficiently as possible, you must choose the shortest route. This is where education comes in.
Read books (a list of my favorites). Listen to podcasts (like these). Read blogs (like the one you’re currently on). Hundreds of resources are available to you – all you have to do is take your time absorb them.
The next step is simply to find like-minded people and connect with them. Being part of a community of people working towards the same goal as you provides not only knowledge but also motivation.
Indeed, as I discussed in this postYou are the average of the five doctors you spend the most time with. When you surround yourself with motivated, goal-oriented people, you will be motivated and goal-oriented.
How do you find such people? Fortunately, the internet has made this easier than ever.
There is the Passive Income MD Facebook Group, for one. You could too Participate in a conference (online or in person) or a local meeting. You can even just ask your coworkers for advice. You will be surprised how useful it can be.
With all of the knowledge you now have, it’s finally time to take the big step: invest. But where do I start?
Well, as the title of this post suggests, I believe real estate is a great (if not the best) option. But while that is somewhat limiting, there are still many options.
Real estate investments range from relatively simple and stable (with lower returns) to complex and risky (but the potential for much higher returns). To get a good idea of it, be sure to take a look this post.
For someone who just dips their toe in the water, I recommend starting with cRowdfunded real estate. Not only is the minimum investment usually very low, crowdfunding also carries low risk with reasonable returns.
You can move in from there private real estate business, turnkey propertiesor even buy your own Residential buildings(s). But starting small is not a bad idea.
Whichever route you choose, it is critically important to conduct adequate due diligence. Research the platform the business (sponsor) offers, the market, the property manager – everything. Make the most informed decision you can make.
But don’t get into so much research that you never make a choice. No investment is guaranteed – and that’s fine.
The bottom line is that once you get to this step, you just have to do it. It can be intimidating or even scary. However, once you have narrowed down how to invest, you simply need to understand.
If you’ve been into real estate investing and were just wondering how to take that first step, think of a gentle boost.
The early stages are often the most difficult – even choosing a direction can be a difficult decision at first. But once you start you get hooked.
The key is to identify your motivation to learn as much as you can and then make the investment. Don’t worry about mistakes; They have to happen, and that’s okay. As long as you keep moving forward, you keep making progress. Take that first step. You will not regret it.