Getting started in real estate investing is easy. There are just five steps to success:
- Find a property
- Fund it
- Fix it, then
- Fill it with tenants, or
- Flip it
Sounds easy, right? And it is, if you know what you’re doing. However, if you don’t, maybe the first step for you should be to find a mentor.
Benefits of Having a Mentor
Why should you look for a mentor for your real estate investing? In short, because experience can be a hard teacher in real estate investing. It’s possible to get yourself in a bad financial situation at any step in the process. Much better to learn from someone else’s experience.
If you choose the wrong property, you can end up with something that won’t turn a profit because it needs more work than you thought. If you make poor decisions when choosing funding, you might find yourself under a hard financial burden. There are many expensive, even dangerous mistakes to make when fixing a property. When you fill the property with tenants, you might find renting a hassle. Tenants might make too many demands, be unable to pay rent, or cause expensive damage to the property. And if you try to sell, your lack of skill as a negotiator can undermine the value of all your hard work.
But a mentor knows how to avoid these and many other problems you haven’t even considered about real estate investing. They can help you understand the principles and can give advice about important decisions. Better than a book or some other resource, they can directly answer your questions in reference to your property.
Perhaps most importantly, though, a mentor can hook you into the network of people who can help you succeed. They can connect you with sources of financing, contractors to work on your property, and trustworthy property managers who can deal with your tenants. Plus, they know the right real estate agents to work with if you’re not prepared to do that for yourself.
What to Look for in a Real Estate Investing Mentor
Having a mentor is only worthwhile if they can help you cut down the learning curve, help you avoid making costly mistakes, and get you access to the right network. So when you’re looking for a mentor, make sure they have:
Experience: A mentor should have a proven track record of success in real estate–in the market you’re working in. There are many “traveling shows” that promote their success, but do they know your market? Find someone local who has had several successful cycles of real estate investing.
Connections: Part of the point of a mentor is that they can hook you up with skilled professionals who can streamline the process of real estate investing. A mentor should be able to put you in touch with contractors, investors, and property managers. This is another place where local mentors have the edge.
Time: You expect mentors to be busy with their own properties. They’re actively engaged in real estate investing themselves. But if they can’t make time for you, what good is it having a mentor? Before you start working with a mentor, make sure you understand how much time they will be able to give you and on what schedule. Then you can decide if they’re a good fit for you.
Are You Looking for a Mentor in Colorado?
Are you looking to get started in real estate investing in Colorado? If so, then having a mentor can be a huge benefit. At Invest Success, we believe strongly in matching new investors with experienced mentors who can help them achieve success as fast as possible with a minimum of risk.
If you would like to learn more about our approach to Real Estate Investing, please connect with us today.