become a real estate investor

March 14, 2008

5 Step Plan for Getting Started in Real Estate Investing

If you haven't already read them you may want to go back and check out the following two posts which really set the stage for this one:

If you've read these previous posts, it should be fairly obvious to you that I believe the most important thing for would-be investors is to TAKE ACTION early in the process. I have spoken about the concept of looking at your first deals as "training deals" because the most important thing that will come from them is the learning rather than the profits.

However, getting those first few deals done is the hardest thing about real estate investing for most people. And the reason for that is the risks (real and perceived) outweigh your risk threshold – plain and simple.

So, what we need to do is first take steps to reduce the risks and then boost your risk threshold until it surpasses the remaining risks. Factors that influence your risk tolerance include:

practical education / experience
theoretical education
confidence
skills
upbringing
personality
psychological make-up
mood
financial situation

Ironically, the biggest barrier preventing people from getting their training deals done is the lack of practical experience itself, since it has the greatest effect on both your risk (knowledge) and your tolerance for risk (confidence). But since you can't get that practical education before doing any deals we need to utilize the other factors that will get you comfortable enough to take action.

Full article… 5 Step Plan for Getting Started in Real Estate Investing

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