Every real estate investor starts in pretty much the same place: feeling more than a little nervous, with a vague ‘in theory’ idea of what they’re doing, and with a lot of work ahead of them.
For new real estate investors, getting your proverbial ducks in a row can seem like a huge task from the get-go. For everyone that reads our blog and sees a $100 Million company, just remember that there was a time when we were beginners too! Memphis Invest knows exactly what it feels like to be getting started and the details an investor needs to pay attention to.
There are so many details to take care of and so many things that you need before you can really get going! However, our experience has shown us that investors often put the emphasis on the wrong "must-haves" and "must-dos". Investors have to stay focused on the right priorities and a big priority is the environment a real estate investor creates to work.
Once you get into real estate investing, are you going to be equipped to actually handle what real estate investment is going to throw at you, or are you going to be caught off guard and left reeling?
This list of real estate investment essentials will help you out. These are things every investor needs—and if not these, an equivalent—to be productive, efficient, and truly successful in real estate investment.
6 Essentials Every New Real Estate Investor Needs
A Separate Bank Account
When investing in real estate, it’s often advised to do so under an LLC. An LLC provides a lot of additional legal protections that you would not have as a sole proprietor. It protects you from not only your own mistakes, but those the ill-intentions of others.
When you start an LLC (limited liability corporation) for your real estate investing business, you’re going to need a separate business bank account. In general, it’s a good idea to have a separate account for your investment income. It helps your bookkeeping immensely come tax time if your personal finances aren’t mingling with your investment business finances.
There are also some local laws that may vary about the handling of security deposits that may require a separate account of handling of the money: so consider that, too!
An Organized Storage Space
It’s so much easier to start as an organized investor versus having an attitude of “I’ll organize it later.” Get yourself some good storage. Whether it’s Google Drive, Dropbox, or another service, having a secure online storage for all of your files and documents is key to staying on top of things.
If you prefer the old-fashioned way, that’s fine, too: but we suggest getting a fire-proof filing cabinet and being diligent about your organization! Filing cabinets are only effective if they stay organized and neat. That goes for your digital filing, too.
Quality Business Cards
A good business card is like a good handshake. It makes a lasting impression! And more than that, they deliver vital information about you and your business. You want to ensure that the card you’re handing out is sleek and professional. Not cheap, not flimsy, and not hard-to-read or poorly designed.
If you don’t know where to start? We suggest checking out Moo. Their business cards range from premium to simply luxe in quality. If you want to make a statement, they’re a great go-to printing company.
An Online Presence
Every investor, whether they know it or not, is building a brand for themselves. The way you do business builds that brand. The way you interact with customers builds that brand. Even if you don’t take a conscious effort to build up a brand, you’re doing it. So why not take advantage of it? Start by making your presence known and intentional. You can do that by making a LinkedIn profile, a business Facebook page, and joining a place like the BiggerPockets community, where real estate investors and professionals come together to discuss the business and share information.
Build your brand and start cultivating a professional voice for yourself. Don’t neglect the power of building up an audience and an online voice—it will help you build connections, find leads, and generate income.
A Library of Resources
Every real estate investor, no matter how experienced, always needs a resource library to go back to. And from day one, you should start building yours. That means bookmarking blogs you know are full of good content, if means saving those podcasts you want to listen to, and it means buying books and reserving space on your shelves (or e-reader) for them.
Build up those references so you’ll always have good information to turn to—because there will be times when you will need to turn to information and advice you know you can trust.
A Dedicated Workspace
And lastly, no matter what kind of real estate investor you are—part time, full time, or turnkey—you need a dedicated workspace. That doesn’t mean you have to rent out an office. It just means you need a space to work that isn’t your living room. Set up a real home office where you can truly focus on work 100%.
So much productivity is lost and energy is wasted when our attentions are split and divided by distractions. A dedicated workspace puts us in the right mindset to work. It’s so necessary! Ditch the kitchen table and get a real desk. Close the door.
Make room for the work that you need to get done.
If you’re a new real estate investor, you’re not doomed to being overwhelmed and overworked as you try to get the ball rolling. There are ways to invest in real estate that won’t steal too much of your time!
Through turnkey real estate investment, a turnkey provider like Memphis Invest will help you navigate all of the fine details and day-to-day operations—freeing you up to enjoy the rewards of your investments on your terms.
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