In the past 20 years, real estate investing has changed a great deal. The most significant change is the influx of investors who engage the market on a part-time or supplementary basis. It is possible to comfortably maintain your current employment while successfully investing in real estate. All you need is to approach the situation correctly. If you are interested in joining the many others who have embraced real estate as a secondary income source, this blog is for you.
Here are five tips to real estate investing when keeping your day job:
1) There Is No I In Team in Real Estate Investing
The most important thing to realize is that you are not a superhero, nor omnipresent. It will be impossible for you to be everywhere and do everything. The first step you should take is building a team of people you trust.
You should consider what agent you want to use, a mortgage broker, and real estate attorney. Also essential is what contractor you will trust with renovations or upgrades and if you will not be an owner-manager, a property manager or management company. All of your choices should be in place before you closing your first deal.
You will want to be transparent with everyone involved about your needs. However be aware not all professionals will want to align themselves with a part-time investor. That said, vet your choices and be sure you feel confident they are reliable. Your success will be directly impacted by the team you choose.
2) Be Tech Savvy
Passively buying real estate and selling real estate for investment is more accessible because of technology. Ten years ago you had to visit a property in person as part of your initial investigation and research. Real estate agents could only provide you with limited information while the literal footwork was up to you.
If you can imagine it, investors once had to go to the town hall to get property info. It could take as much as a full day to gather enough information on one property to seriously consider it. It is fortunate this is no longer the case. With technology, you can find most information online, and documents can be electronically accessed.
Resources, like property valuation websites, are able to give you an efficient and accurate rundown on almost any property. The information lets you create a short list of properties that may be good investment options. That said, this is not a hands-off approach to investment research. You will still need to do additional fact-checking and should view the property.
3) Time Efficiency
Depending on the work you do, your productivity may be hindered. For example, if you have a job where computer access or Internet is not available, you may be more limited. Also if your position does not allow you enough free time that may prove a barrier. Whatever the case, time management will be paramount to your success.
Developing a system that allows you to evaluate new prospects as they become available will make the process run smoothly. Also, keep a running checklist of what you need to accomplish and when you plan to execute. Have a carefully laid plan for your team and know when in the process you will need to utilize them.
Getting back to technology, decide where and how you will be using technology to enhance your business and productivity. During your regular workday, use your free time to implement useful systems. If you are not able to get away from your workplace during the day, creatively plan. Consider how to best use your time and the systems you have developed to support efficiency.
4) Plan Your Goals
Creating action plans that align with your goals is the hallmark of a successful investor. We all have limited time during the day. It is for you to decide how to make the most of it. Having a to-do list that organizes your priorities from most important to least will help focus your attention.
If you are unsure how to begin, start with jotting down your real estate related goals. Do you plan to focus on buying real estate for rental income? Do you hope to flip property with the goal of steadily selling real estate for profit? Outline your desires clearly. Having a clear vision will impact your property choices and deter you from pursuing deals misaligned with your goals.
Careful planning will also impact how your investment team will function and allow for a positive rapport. You will be taken more seriously when you can clearly articulate an action plan likely to lead to a successful deal. Spend your time before bed writing down your goals for the next day. Start implementation when you wake up, rather than procrastinating.
5) No Pain, No Gain
It is possible to successfully invest part time. However, you need to be willing to make sacrifice your buzz-word. Lacking significant daytime hours during your workweek means you will have to find other times to be productive. This means your evenings and weekends may become work time rather than leisure.
You will have to choose between your favorite TV show and focusing on a new deal. Instead of indulging in Sunday football, you should be on the ground viewing properties and attending open houses. You may have to start your days early and end them late regularly. Just as with any other business endeavor success will take sacrifice.
If you have questions about the best way of financing real estate, pragmatically buying real estate for investment, or how to find your niche in the market we would like to help you. Our team of coaches are ready to share the tools of real estate investing you need to be a successful part-time investor. Contact us today for a complimentary 30-minute coaching session.