10 Things to Do Right Now if you are a New Real Estate Investor
By: Loreal Loftus
- Learn Creative Financing
- Study subject-to, seller financing, lease-options, and innovations.
- These tools help you create deals even when sellers owe too much or rates are high.
- Build Your Buyers List
- For wholesalers and agents, cash buyers are your lifeline.
- Network at REIA meetings, Facebook investor groups, and auctions.
- Collect contact info and buying criteria (price range, location, property type).
- Master Deal Analysis
- Practice running comps, calculating ARV, and estimating repairs.
- Use simple formulas: 70% Rule (ARV × 70% – Repairs = Max Offer).
- Confidence in numbers makes you faster than your competition.
- Track Local Inventory
- Watch for listings that sit 90+ days — motivated sellers hide here.
- Set up MLS alerts or Zillow/Redfin searches for your ZIP codes.
- More days on market = more negotiation power.
- Get Comfortable Talking to Distressed Sellers
- Practice scripts for pre-foreclosures, divorces, inherited homes, and tired landlords.
- Sellers in distress want a problem-solver, not just another “lowball offer.”
- Understand New Rules for Agents
- If you’re an agent, learn the new buyer-broker agreement requirements.
- Practice explaining your value and how compensation works now.
- Line Up Private Lenders
- Start building relationships with people who want to lend money on deals.
- Banks are slow and cautious — private money closes deals fast.
- Sharpen Marketing Systems
- Build a simple system for reaching motivated sellers:
- Direct mail
- Bandit signs
- Google/Facebook ads
- Networking with attorneys, agents, and contractors
- Consistency beats size — even small campaigns work if repeated.
- Protect Yourself From Bad Deals
- Always check title for liens, second mortgages, and HOA issues.
- Don’t skip inspections — know what repairs really cost.
- Walk away if numbers don’t work.
- Invest in Your Education & Network
- Join your local REIA (like MnREIA).
- Attend foreclosure auctions to observe.
- Shadow experienced investors and agents.
- The market is shifting — those who keep learning and adapting will thrive.
Bottom Line:
The next year will create more motivated sellers, more distressed properties, and more opportunities. If you build your skills, systems, and network now, you’ll be ready to act when others are still trying to figure it out.