10 Real Estate Investing Tips For Beginners & Pros

When you’re investing in real estate, it can feel like you’re walking on a tightrope at times.

Especially if you’re a landlord with a smaller portfolio.

Balancing the highs of generating passive income with the lows of market swings, tenant problems, growing expenses, and the natural learning curve can feel overwhelming.

And if you’re investing in fix & flips or building an AirBnB portfolio, it can get even more hectic.

But what if there were ways to minimize the chaos and gain more traction as you do it?

In this guide, that’s what we aim to help you with. We’re going to break down 10 real estate investing tips that will help you adopt the right mindset, approach common problems the right way, and make the shift from beginner to seasoned professional.

Tip #1 – It’s All About The Risk

Successful investors know this more than anything — it’s all about the risk.

From the properties you’re looking at, to the renovations you make, the tenants you sign, risk is involved with every decision you’re going to be making.

The key, though, is to understand what those risks look like so you can make calculated, educated decisions.

As an example, not every tenant that applies is going to treat your property the way you do. They may terminate the lease early or even cause property damage. Expecting this can save you a ton of heartache.

Or a flip could look profitable in the beginning but once you start taking it down to its bones you could run into major repairs that need to be completed before the house is ready to sell.

For most investors, you’ll need to experience these frustrations in order to learn from them. It’s the nature of real estate investing.

But when you understand the risks, you can learn to embrace them — and make decisions to mitigate as much of that risk as possible.

Tip #2 – Your Network > Everything Else

If you’re trying to hide away in your office while you build a successful real estate company, it’s going to be a lot harder for you to build momentum.

Real estate is essentially a people-based business — which means you need to connect with other people.

Especially other real estate investors and industry professionals.

You never know when a relationship you’re building could turn into new deals, lessons you don’t have to learn on your own, or a new partnership.

While most new investors see other investors as competition, smart investors know that there’s a wealth of information to be shared.

A lot of times, that information is focused on how to avoid mistakes, how to shorten the learning curve, and how to find deals before they become available to the public.

If you’re early on in your career, get involved in your local real estate market. Join meetups. Connect with investors, agents, and other professionals to start building your network.

It will become the foundation of everything you do.

Tip #3 – Dominate Your Niche, Not The Industry

A lot of investors think they’re competing against the entire industry.

That isn’t the case, though.

In reality, you’re only competing against yourself and competing against other investors in your niche.

Real estate, like any other business, is really just a mental game. There’s lessons to learn, mindsets to develop, and mistakes to make — while keeping yourself motivated after you make them.

Instead of trying to compete against everyone, or dominate the industry, focus your energy on competing against yourself, being better than you were yesterday, and dominating your niche.

Most of the time, accomplishing that revolves around learning to say “no” to anything that doesn’t fall perfectly in line with the goals you have.

The more often you’re able to say “no” to something that isn’t in your niche, or isn’t aligned with your goals, the more time and energy you have to say “yes” to projects and properties that are in alignment.

And that’s how you dominate your specific niche, instead of worrying about the rest of the industry.

Tip #4 – Trust Your Gut Instincts

Savvy real estate investors have developed a strong intuition when something is right — and when it’s off.

This is something that only comes with experience but, as you’re getting started, pay attention to that gut instinct and make a decision based off of it, as well as input from other more established investors around you.

What this is going to do is help you develop your own instincts and dig deeper when something feels off.

It will also help you move quicker and make better decisions when everything lines up and feels right.

Keep in mind, though, you’re going to make mistakes.

But those mistakes are lessons that will help keep you from making them again in the future, if you’re able to learn from them.

Savvy and seasoned investors have already made the mistakes and developed their gut instinct.

(Which is another reason you need to be networking with them — they’re usually happy to share what they’ve learned if it can help someone else not make the same mistake.)

Tip #5 – Learn How To Maximize The Value

To make it as a real estate investor, you need to understand value.

That doesn’t necessarily mean what you can sell a house for, either. Recognizing value starts early on in the process, before you’ve ever gotten a contract on the property.

Getting the property for a great price is only half the battle.

The other half revolves around what you do to the property to make it as attractive as possible to tenants or homebuyers.

Some renovations, like a bathroom or primary bedroom remodel, can return a higher ROI than going all out on building a detached garage, for instance.

It’s worth understanding which of these renovations are going to give you an ROI and which ones are only happening because you FEEL like they’ll attract buyers.

Maximizing the value in the properties you’re flipping or holding is what separates average investors from the seasoned investors who have a business that scales.

Tip #6 – Build A Plan – Then Stick To It

Everything you do in your business should revolve around your goals. Both short-term and long-term.

If you don’t have clear cut goals in place, you’re going to end up saying “yes” to things that aren’t in your wheelhouse.

The business plan you create when you start building your real estate business is a good foundation that will help you stay focused on the big picture instead of getting buried in minor setbacks.

If you’ve chosen to pursue the rental path, say yes to deals that would make great rentals.

On the flipside, if you’re choosing to fix and flip, focus on deals that you know you’re going to flip.

Don’t let shiny object syndrome or distractions or people who seem successful deter you from the plan you put in place for yourself early on.

Stick with the plan you’ve given yourself and become the master of it — instead of a jack of all trades — and you’ll find success far faster than you would if you end up spreading yourself too thin.

Tip #7 – Focus On The Foundations First

Investing in real estate is a lot like building a house.

If the concrete foundation isn’t laid properly, the rest of the house is at risk.

In your investing business, the foundations are your business plan, your accounting, your operations, your niche, and the deals that you search for & try to get locked down.

The data that you’re collecting from the foundation you’ve built is what will help you make decisions.

Instead of relying on emotion to guide your way, you can look at the data, learn how to interpret it, and use it to keep you focused on your goals.

Then, if you ever start getting off track, you can revert back to those foundations, figure out what may be off, and re-align yourself with the goals you had when you first started.

Tip #8 – Protect Your Finances

Having a solid financial blueprint in place for your business is absolutely critical.

In it, you want to include everything from marketing and acquisition costs, to holding costs, fees for things like permits, administrative costs, you name it.

These expenses can catch you off-guard and put you into desperate situations where your emotions start dictating the decisions you make — instead of the data.

And laying out this plan isn’t just about staying organized in your business.

It’s about ensuring a smooth journey as you start building, growing, and then eventually scaling your business in a predictable (and ultimately successful) way.

As you start generating income, pay yourself the minimum and keep pouring those finances back into the growth of your business.

Too many investors have fallen victim to unexpected financial setbacks that could have been avoided with proper planning from the get-go.

Tip #9 – Get Help

Trying to wear all of the hats in your business is a bit of a requirement in the beginning.

As time goes on, though, ask for help.

Whether that’s an accountant to keep your finances in check, or an assistant to quickly respond to incoming calls and texts, you want to find your zone of genius as early as possible — then live in it.

Other people will be able to do the rest of what your business requires far better than you’ll be able to.

And when you adopt this mindset, you’ll realize that the more time you spend in your own zone of genius, the more money your business is going to generate.

The sooner you can do that, the sooner you’ll find real success as a real estate investor.

Bonus Real Estate Investing Tip: Get Control Over Your Deal Flow

As you’re networking with seasoned investors, one of the biggest things you’re going to notice is that they’re successful because they have control over their deal flow.

They know that new leads will be coming in on a consistent basis.

And they have systems in place to capitalize on those leads — and follow up with the leads that need to be followed up with.

The key there, though, is having new leads coming in on a consistent, predictable basis.

When it comes to accomplishing that goal, direct mail is one of THE most proven marketing strategies you can use to have sellers reaching out to you before other investors.

Like any other strategy, though, the key to success with it is consistency and following up.

Which is where Ballpoint Marketing can help.

We’ve tested and tweaked campaigns to the tune of sending millions of pieces of direct mail for ourselves and our clients.

The sequences you see on this page have been proven to drive inbound leads and more deals for investors around the country.

But if you’re serious about growing your business, one of the best tips we can give you is to get control over your deal flow — by using proven direct mail sequences to drive more leads and open the door for more opportunities.

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