How can I become a real estate investor? via Quora 

by Brandon Turner

I’ll echo what others have said in this thread, but add some as well. To become a successful investor, I believe there are eight steps:

1.) Commit – all the rest is for nothing if you don’t commit.

2.) Education – through books, blogs, podcasts, forums, and other avenues. Obviously, I’m partial to the free education you can get from http://BiggerPockets.com but there are a lot of good sources. Be wary of the gurus trying to sell you on $50,000 products. You don’t need it – info has been democratized.  I’d recommend starting with The Ultimate Beginner’s Guide from BiggerPockets.

3.) Choose a Niche and Strategy –  once you’ve done your preliminary education, it’s time to sink your teeth into the specific way you wanna make money in real estate. You don’t need to be an expert at everythign – but pick one niche (single family homes, multifamily, commercial, etc) and one strategy (flipping, buy and hold, wholesaling, lease options, etc) and become the expert at that one strategy.

4.) Create a Plan – You wouldn’t drive from Canada to Peru without a map, knowing only that it was South. In the same way – don’t drive from where you are now to retirement knowing only the general direction. Make a written plan, based off your education.

5.) Buy your first investment property – at some point, you’ll actually have to pull the trigger and do it, so don’t get stuck in “analysis paralysis.”  Find a KILLER deal, and make it happen. It might take looking at 100 deals before you find a good one – but do it.

6.) Figure out Your Financing – (you may wanna switch around #5 here and #6.) You need to know how you are gonna pay for this investment. Banks, cash, partners, private money, hard money lenders (Hard Money Lenders Directory can help with that) are all good methods.

7.) Manage Properly – all the above is for nothing if you lose your investment cause you don’t manage it correctly. Learn how to properly and efficiently manage your investment.

8.) Plan Your Exit – always know how you are going to get out of your investment. Plan this before you even buy anything. Have multiple exit strategies.

Hope that helps! This is basically a Summary of our Ultimate Beginner’s Guide to Real Estate Investing which you can read 100% free on BiggerPockets Real Estate Investing Social Network: Connect & Learn.

Good luck!

How can I become a real estate investor?