Episode 23
23 - The Basics of Real Estate Investing for Beginners
Episode Summary
In this episode, Quentin talks with a member who is starting his real estate career with a house hacking strategy. He changed his career and moved into construction, and got his real estate license as a way of investing in real estate. We found that he is running the risk of doing too much himself, and might want to look at outsourcing in order to grow faster.
In terms of real estate investing, the member has rented out the basement of his property. He wants to eventually buy another house, rent out the upstairs, get another house with a basement apartment again, and build his way up that way. He left his job as an accountant five years ago, and took on construction and carpentry, with the end goal of getting into real estate. He has also earned his realtor license as well.
Talking about what he wants to achieve by participating in the membership, he says that it will help him in gaining subject knowledge, networking, a work life balance and building some wealth for his kids as he wants it to be his career. Quentin adds that while the member likes to be hands-on with all aspects himself, he does not need to do any of that to be a real estate investor. He needs to figure out how to build a team around him to do the things that he doesn't like to do, while figuring out what he likes doing in the business and then focusing on that.
Quentin suggests starting with Your First Three Properties in Real Estate course, as most Realtors don't have the background in the investment side, where you really need to be, if you're going to go down this path. He also suggests using the Property Analyzer Tool, that helps you to analyze a property to see whether the numbers work or not. As the member likes to be hands-on with the renovations, there is also a video series on renovations. Quentin adds that he should take some time, go through the videos, and the actual case studies to get familiarized with the ins-and-outs of real estate investing.
The member share that he wanted to learn how to do everything, so that he would have the knowledge. Quentin adds that in this business there are so many different roles that you could do. The industry allows for different ways for people to earn income, but what happens is you become transactional, where you are selling your time for dollars. That is not something you would want to do, so you have to build the asset base, and to do that it requires you to focus on adding assets into your portfolio.
Quentin suggests attending the meetings, the Q&A calls, and networking events, and talking to other people to find out what they're doing, where they're buying and what makes sense. He also suggests using the Action Taker Goal Attainment Program. It helps you to outline what your 10-year goals are, what your three-year goals are, and then helps you to outline quarterly goals for yourself. He adds “if you write down in some way what you want, and you look at it, they are more likely to achieve it, than if you were to, you know, have an idea in your head.”
On the subject of investing in areas a little further away, Quentin says that you have to be careful when you're thinking about something like that. There is a criterion to stick to and he can identify that after going through the First Three Rental Properties Course. It highlights the fundamentals that you want to look at, and factors to take into consideration before making a decision. Once he has decided, he can join the Q&A calls, networking events, and find somebody else who has invested in that area. That way he can get a better idea. He concludes by saying that the challenge isn't usually the area, it's finding the right assets.
Topics Discussed
- Introduction [00:00]
- What Does He Want to Achieve by Participating in the Membership? [02:53]
- Where Areas Should He Invest in? [15:00]
Resources Mentioned
