To begin investing in Real Estate in Baltimore City, MD, you’ll need to invest in your education, network with the local investors that have succeeded in the goal you are looking to achieve, and analyze 100 properties to start.
Knowledge
The internet is vast. In 2021 there is no excuse for not learning.
Different websites, YouTube videos, and books are all free. I would highly encourage and recommend for you to first search become familiar with the foundations of real estate investing.
Anytime you have a question, be sure that Google is your first step.
When you are ready and would like to significantly shorten your learning curve, begin to navigate the waters of paid resources.
Nat of Kat Nat Real Estate offers coaching. See plans here!
You also have other paid courses online, or paid books or audiobooks.
Never stop learning and never stop growing!
Network
Begin to make calls.
Locals
Local investors can help shorten your learning curve. Experience is one of the greatest teachers and I am a firm believer that you do not need to make the mistake yourself to learn from it. Learn from the mistakes of others. They paved the way so you don’t have to.
Listen and learn and connect with as many local investors as you can. Take them out to lunch, or coffee. Provide them with a level of value so that they know their time is not being wasted.
After the conversation, follow up via email. Summarize and ask any additional questions via email.
Come prepared for those conversations and remind them how much you appreciate their time and efforts.
Search for those that have the heart of a teacher. Also, ensure that you find local investors that are doing exactly what you’re looking to do.
While you should not reinvent the wheel that does not necessarily mean that you should find someone else’s wheel that doesn’t fit yours.
Replicate the steps of those that succeeded in the goal that you want to have!
Also, You’ll need to consider who your dream team is:
Dream Team
Real Estate Agent
Your real estate agent is the first member of your dream team that you need to recruit. More than likely your real estate agent works with top notch members that could join your dream team.
This will help you in the process of determining who is part of your Dream Team.
The real estate agent will also set you up with searches for you to begin receiving and analyzing rental properties.
Contractor
The contractor is the one who will be doing the work. A high majority of the properties that you acquire whether they be distressed or rent ready will need a contractor’s touch.
Do not expect the contractor to return your calls and be the utmost professional partner.
A great contractor is not one that immediately responds to calls, emails and has the most beautiful marketing plan, social media strategy, and website. The great contractors are busy during the day and getting their hands dirty and fixing up distressed properties.
Take care of your contractor and they’ll take care of you.
Lender
The lender will review your financial report card and be able to pre-approve you.
This pre-approval will allow you to purchase properties and will also tell you a little bit more about your future path to acquire more than one rental property.
Tell your lender everything you plan to do and what your future goals look like so that you both can come up with a financial strategy to achieve your goals.
Property Manager
Once the property is purchased I would argue that your next step is to continue to acquire and grow your business. The property manager will be the one to maintain your asset.
From screening tenants to handling repairs, the property manager is the lifeline to maintaining a profitable real estate business.
Be sure to connect with local investors and do your research to ensure that you select the right and best property manager for your portfolio.
Analysis
Analyze 100 deals. After analyzing 100 deals, then, and only then, will you be able to purchase one of those deals.
The question you will then answer is, “how will you know a good deal if you don’t know a bad deal?”
In the analysis of the hundred deals you’ll begin to notice patterns. Patterns like:
- Average price point for a distressed property
- Average price point for a rent ready property
- Local market trends
- Sales increasing in the area?
- Sales decreasing in the area?
- Throughout your journey you’ll begin to develop a spreadsheet and more efficient ways to calculate the numbers.
The fun really gets there when you start analyzing the deal before even actually running the numbers. Yes you’ll become that good at it! You’ll see a property and immediately know whether or not the numbers will work or will not work.
Check out this guide for your step-by-step tutorial: How to analyze rental properties
Summary
Depending upon how motivated you are and how driven you are will directly correlate to your success in real estate investing.
The more knowledge you gain will attract more people around you. The more local investors you attract and the more knowledge you have, the better conversations you can have with those local investors.
Throughout this process of growing your knowledge and connecting with people and expanding your circle, you should be analyzing properties daily so that you can build the confidence. When that great deal comes along and your confidence is high you’ll be able to purchase with little to no resistance and feel comfortable in doing so. Especially if you have the knowledge and the network to support you down this path.
