The Real Estate Investing Process Simplified:
In this article, we keep it super simple for new real estate investors by breaking down the process into 18 steps, which Gary Keller lays out beautifully in his book The Millionaire Real Estate Investor.
I highly recommend purchasing his book if you want to learn from an expert multi-millionaire and founder of Keller-Williams Realty.
The Set Up Process:
- Get knowledge
- Educate yourself on real estate investing
- Pick a niche you want to specialize in (rentals, flips, wholesale, development)
- Get relationships
- Build your network. You need a team to survive in real estate. Learn how in this article.
- Find a mentor who has been in the game for several years that you can work with and learn from. Pick someone who has been successful but also can teach you their failures.
- Get leads (sellers, properties, capital)
- Leads are the lifeblood of keeping the system churning
- Use your network/relationships to find leads
- Set up a website to capture online leads
- Learn how to become an expert at scouting homes to invest in
Property Purchase Process:
- See it – Go to it yourself or have someone else
- Evaluate it – Run financial analysis to see if it passes an initial screening
- Control it – Get it under contract so you can do further due diligence
- Inspect it – Find out what is wrong that needs fixed
- Estimate it – Determine the cost of repairs
- Contract it – Have contractors in place ready to make the needed repairs when you close
Financial Management Process:
- Finance it – come up with the funds to acquire the property after passing all screenings
- Protect it – keep the property in good condition, insured, and secured
- Close it – finalize the purchase of the property
Execute the Investment Plan:
- Improve it – make the needed repairs with your contractors
- Sell it – flip it for a quick profit
- Reinvest it – take the profits and start over with the next property leads
- Rent it – get a tenant into the unit paying monthly rent
- Manage it – hire a manger or self-manage
- Maintain it – repairs and maintenance each year to preserve value
Go back to top and repeat with the next property.
Keep it simple. Create a plan. Execute it. Tweak it. Keep hustling. You’ll do great!
Other Articles You May Enjoy:
- Ultimate Guide to Finding Real Estate Deals
- Ultimate Guide to Financing Investment Deals
- Wholesaling for Beginners
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