Real estate investing is a fantastic path to generate long-term wealth, if your head is in the right place, to tackle all the obstacles along the way. Success is never easy but is always possible with the right real estate investing mindset. Find your way to wealth with the help of these four tips:
The Most Successful Have Mentors
When getting into real estate, especially as an investor putting your money on the line for the first time, there is no shame in taking advice from people who’ve been there before. Do your research, seek out networking events and other similar groups of like-minded people and pick their brains. Entering into a partnership may not be a bad idea either, where the more experienced investors provide the bulk of capital and expertise and you do the “grunt work.” It isn’t glamorous, but it provides an excellent opportunity to learn and gain experience while making money at the same time when the profits finally come.
Long story short – learn from someone wiser than yourself in the beginning, especially if they’ve already gone through hardships you aren’t even aware of yet.
Building Wealth Takes Time
There are many ways to create wealth in real estate, whether you decide to become an investor or an agent. Whichever one you choose, it takes time to accumulate real wealth in this business. If you approach it as a get rich quick scheme, you’ll probably get burned with nothing to show for your efforts. Most investors need to spend months conducting research and other things like understanding their market(s) of interest and related variables, establishing clientele where necessary, overseeing renovations on existing properties, etc., before the money begins flowing in. You will also make mistakes along the way, which is expected, even if it costs you money.
Keep the faith – over time you will master the important areas and develop the patience needed. Remember that this is a process and, above all else, processes take time.
Approach Real Estate as a Startup
Many new investors begin their journey while still working a day job. In fact, investing is often seen as more of a side project or hobby than a full-on enterprise. Once you begin to see it generate income, though, the equation changes dramatically. That’s why it’s best to shape your mindset in the beginning properly. Don’t think of your investing as a hobby but rather a startup, like Apple or Facebook back in the day. Think through a realistic business plan, look into the tax ramifications, conduct research based on how you want to invest, generate ideas to keep pushing forward, and put in countless hours of work.
If you think of your new venture as a startup rather than a hobby, you’ll attack it with the focus necessary to make it work.
Properly Structure Your Business
The difference between being good and being great often lies in the details. This concept directly translates to how you handle your real estate business when it comes to legal and tax matters. Two questions to ask:
- What are my goals for this business?
- How do I set it up to achieve those goals?
If making as much money as possible while paying the least amount in taxes is a goal, you need to make sure your business is legally structured to do that.
Anderson Advisors’ team of lawyers, CPAs, and experts understand how to approach this task because we are real estate investors, too. We know the ins and outs of these laws because we engage in it every single day. This gives us the opportunity to bring that knowledge to work for you. Everyone’s business goals are different just like the means to achieve them; that is why we help you figure out the best path for your goals and put it into action. All you need to do is schedule a FREE 30-minute strategy session with one of our team members today.
You’ve already demonstrated your serious interest in being financially successful and in developing a real estate investing mindset. Let us help you complete the next steps and celebrate with you when you’ve achieved your goals.