Getting Started in Real Estate
"Ninety Percent of Millionaires become so through owning real estate.” - Andrew Carnegie
Introduction:
Let’s talk real estate! One question I hear all the time is, "How do I get started in real estate?" So, let me share a bit of my journey. I’ve bought 13 properties, which has given me the financial freedom to travel, purchase my dream truck, and live life on my terms.
I left the military at 23 and bought my first house while going back to school at Arizona State University. I didn’t want to pay rent, so I found a house a few miles off campus with four bedrooms and a pool. My plan was simple: rent out the rooms to cover the mortgage. This allowed me to live for free during college while also cash flowing $500 a month! Over a year, that added up to $6,000 in profit, and over four years, $24,000—all while the house appreciated in value and I got to live with my best friends.
After selling that property (for a $78,000 tax free profit), I purchased a second one in Scottsdale with a guest house in the back. I rented out the guest house and two rooms, which brought in $1,000 a month in cash flow, covering all expenses, while the property’s value continued to rise.
Getting into real estate can be incredibly rewarding, but it does come with risks. Knowing where to start is crucial to increasing your chances of being profitable and successful in the real estate game.
With that said, here is how you can get started in Real Estate.
1. Start with the "Primary Property" Strategy
Focus on purchases a property in a ideal location, with ample bedrooms, a guest suite, and/or a mother-in-law suite. Rent out the additional rooms, and cash flow on the property for 2 -3 years.
That’s the "hack": Strategically buying property. Find a place in a rentable location with a guest house, mother-in-law suite, and ample bedrooms. I know it doesn’t sound glamorous to have roommates, but if you’ve got goals and ambitions, you’ve got to give a little to get a little.
And if roommates aren’t your thing, really focus on properties with guest houses or mother-in-law suites.
2. Pay Your Taxes [The Number One Way]
Although it comes second in the list, this is the primary strategy for effectively getting ahead and being successful in the real estate game. You need to pay taxes on the income that your property is generating. This will decrease your debt to income ratio (DTI), and banks will be more willing to give you capital for additional properties.
You got to pay to play.
3. Real Estate Takes Time
Real Estate is a slow process. Getting into real estate is a long game venture. Especially when starting out with low to limited cash flow. I have been in the real estate game since 2015. My success in Real Estate didn't happen overnight. Trust the process, and give yourself time. Enjoy the process and build for the long game.
Getting in to real estate can feel overwhelming. There is a lot to know. You don't have to do it alone.
First: Schedule a call with me and I can help answer your questions, help you strategize, and coach you through your real estate journey.
Second: Join the Ranger to Real Estate Community for more helpful articles on how to crush it in the real estate game.
Become Apart of the Ranger to Real Estate Community:
"Make the choices today, that your future self will thank you for tomorrow." - Coach Justin U.S. Army Ranger
Check Out My Full Video: How To Get Into Real Estate
Before and After of My Latest Property...
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Address: 4564 Chapman HWY, Knoxville, TN 37928
