I am often approached by aspiring or new investors and asked what steps they can take to better prepare for their first investment. We understand the anxiety and the feeling of being overwhelmed in the beginning. After all, the minimum investment amount is not insignificant (ranging from $50,000 to $100,000). And often, especially if you are new to finance and real estate it may feel like listening to someone speak in a foreign language. Below we outline the Top 3 steps one can take to get started.

1. Get Educated

While the sponsor of a deal would typically provide a ton of information and take the time to answer questions, as a steward of your own money you have responsibility to get educated and informed, so you understand the risks of the investments, mitigating factors, and how such investment meets your personal financial objective. There are a number of ways to get educated:

  • Podcasts: This is a great way to get started, especially for busy professionals who have only a few minutes a day or a long commute to work. There are a number of podcasts out there. In addition to Bigger Pockets, you can find a list of premier real estate podcasts we have been a guest on here.
  • Books: For those who enjoy reading (paper or audio books), we are including a link to our passive investor book list. In addition, we created The Busy Professional’s Quick Guide To Investing In Multifamily – a comprehensive guide to help you understand multifamily syndications and help you evaluate investment opportunities quickly and confidently. You can access a complimentary copy here.
  • Other sources: There is a ton of free content, including a variety of blogs that many operators post on their company site. We have a treasure chest of educational articles you can access on our site. Webinars present another excellent educational opportunity.

2. Get To Know The Operators.

As discussed in prior articles, the operator is the key most important ingredient to making an investment successful. So how can you find out who the active operators in the field are and get to know them?

  • One on one calls or meetings: Often the operators/sponsors will have a link to their personal calendars that you can access and schedule a call. This is a great opportunity to get to know them on a one on one basis, ask questions, and build a relationship.
  • Subscribe to the sponsors’ e-mail lists or their You Tube or other social media channels:  As you start following those emails/social media posts, you will be able to get to know them, stay abreast of important updates and over time determine if your vision and values align with theirs.
  • Connect at meet ups and conferences: These are excellent venues to connect with both sponsors and fellow investors in person to learn from their experiences or exchange ideas.

3. Evaluate, Assess, And Take Action.

Take your time to get educated and assess the landscape and investment opportunities. You should not feel rushed or pressured to invest in a deal. Yes – investment opportunities are often presented on a first come first serve basis and as such you may miss on great opportunities. However, there will always be a next deal, even if you have to wait a little. Nevertheless, after some time, it is important to take action with an operator you know, like, and trust. After all “the best time to plant a tree was 20 years ago and the next best time is today”.

The first investment is usually the most challenging one and a big milestone. However, as with anything, it gets easier after some time, especially after you develop the knowledge and relationships to help you succeed in real estate investing and on your journey of reaching your own personal and financial freedom.

Should you have any questions or want to learn more about real estate investing or for an overview of our target markets, please reach out to info@dbacapitalgroup.com.

Disclaimer: The information presented does not constitute legal, accounting, tax, or individually tailored investment advice. Past results do not represent or guarantee future performance.