- Joined
- Jan 11, 2008
- Messages
- 53
Seeing as I get asked this question once a week, I thought I`d post here in hopes that other experienced investors might throw in their two cents about the first steps to getting involved in Real Estate with little money or experience.
The short answer is, "Be willing to bust your butt in the legwork department and prove your worth before asking for a piece of the action in return."
Alternatively you can go ask someone who knows you and trusts you to back you with their money.
Here`s my long answer:
There are three "E`s" in the Real Estate Equation:
1. Expertise
2. Effort
3. Equity
These are directly offset by the three "R`s" of Real Estate Investing:
1. Risk
2. Responsbility
3. Returns
If you lack Equity and Expertise you will need to be prepared to put in a large amount of Effort for the first 12 - 24 months. You`ll need to do this in conjunction with joint venture partners who would be easiest to find at the REIN groups (so the first step is to join).
Your role would most likely be to go around looking at properties, getting to know your local real estate market intimately, making contacts and building a good network so that leads in the area come to you and your investing partners first before they hit MLS listings. You`ll have an advantage if you live in a community that doesn`t have a lot of local investors already.
The time and energy involved will look quite significant for the returns that first year. You might negotiate a 5 - 10% partnership in properties you help research up where you live for Edmonton/Calgary/Toronto/Vancouver investors. The amount of time you invest in this process would be 15 - 30 hours a week. More important than the time is the quality of leads you develop from your growing expertise and networks.
The most valuable thing you would build out of this first year is the network and experience you gain. If you feel like the financial returns are low for the amount of time and energy invested then wait until you have capital of your own to invest and take on 100% of the risk, responsiblity and returns.
I`d love to hear what other experienced investors have to say on this.
The short answer is, "Be willing to bust your butt in the legwork department and prove your worth before asking for a piece of the action in return."
Alternatively you can go ask someone who knows you and trusts you to back you with their money.
Here`s my long answer:
There are three "E`s" in the Real Estate Equation:
1. Expertise
2. Effort
3. Equity
These are directly offset by the three "R`s" of Real Estate Investing:
1. Risk
2. Responsbility
3. Returns
If you lack Equity and Expertise you will need to be prepared to put in a large amount of Effort for the first 12 - 24 months. You`ll need to do this in conjunction with joint venture partners who would be easiest to find at the REIN groups (so the first step is to join).
Your role would most likely be to go around looking at properties, getting to know your local real estate market intimately, making contacts and building a good network so that leads in the area come to you and your investing partners first before they hit MLS listings. You`ll have an advantage if you live in a community that doesn`t have a lot of local investors already.
The time and energy involved will look quite significant for the returns that first year. You might negotiate a 5 - 10% partnership in properties you help research up where you live for Edmonton/Calgary/Toronto/Vancouver investors. The amount of time you invest in this process would be 15 - 30 hours a week. More important than the time is the quality of leads you develop from your growing expertise and networks.
The most valuable thing you would build out of this first year is the network and experience you gain. If you feel like the financial returns are low for the amount of time and energy invested then wait until you have capital of your own to invest and take on 100% of the risk, responsiblity and returns.
I`d love to hear what other experienced investors have to say on this.