12 Simple Tips For Beginner Real Estate Investors

Remember: You don’t need to know everything about everything.

Aug 23, 2014 at 6:00PM


1. Don't blindly listen to me or anyone else. What works for me isn't always going to work for you. You are in a different market, with different skills, and have different resources. Do what works for you.

2. If you don't know what works for you, keep reading and listening to podcasts until you figure it out. We have 83 episodes of the BiggerPockets Podcast, and they are all free. Listen to all of them and I guarantee a plan will start to form in your mind. 

3. Remember: You don't need to know everything about everything. You just need to know enough about the one niche and strategy you are going to get into. Don't get overwhelmed with knowledge. Focus on what matters. 

4. Real estate investing is not a competitive sport. Ask for help from others. Build relationships. Learn from those with more experience than you. As the famous quote says, "You are the average of the five people you associate with most."  Go associate. 

5. Get your spouse on board or wait.  Your marriage is worth far more than your net worth. 

6. Write out your business plan. This doesn't need to be super formal, but it should be written down. Where do you want to get to? How are you going to get there? Without a road map, it's hard to stay on the right path.

7. If you are buying a rental property, budget for property management, whether or not you plan on using it. If you can't make money while still paying a manager, you aren't buying an investment – you are buying a job. If you choose to manage, great! But don't buy a job.

8. Do your math like your wealth depends on it; because it does. To help with this, try out theBiggerPockets Property Analysis Calculators. You'll love them. Then do the math again. Be conservative in your estimates and don't fudge the numbers.

9. Sweat equity is a good thing. Don't be afraid to get you hands a little dirty if needed, but also understand that you don't have to. Manual labor can be a good trade for cash, but it's not the only way.

10. You will have problems, stress, drama. Don't be surprised by it, but receive it carefully like you are catching a water balloon. Problems are a puzzle that you need to solve, not a dead end. Remember this when times get tough and it will help keep the stress down.

11. Treat your business like a business, not a hobby. Create systems, processes, and rules that govern how you do things.  Pretend that you will be handing your business off to someone else very soon – so you need to have a carefully defined process for doing things. This process will change – and that's OK.

12. Share your stories, mistakes, lessons, successes, and more with others. We are all on this journey together!  The BiggerPockets Forums are a great place to do this!

This article originally appeared on Bigger Pockets and is Copyright 2014 BiggerPockets,

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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