We do very few things in life that don’t require a bit of education; breathing is one that springs to mind. Most other things need some knowledge first, and real estate investing is no exception.
Traditional investing methods have a lot of information available online, and there’s a lot of familiarity with them. For those looking to break into alternative investing strategies, such as real estate, a little research is required before you toss your money into the ring. This is one situation where we don’t advise the learn-on-the-fly approach, which will cost you a lot before seeing results.
Here are the fundamental lessons you’re going to want to sit in on before you start investing in any alternative investment strategy.
1. Learn from quality sources.
Just as in school, make sure you seek out reliable and reputable sources for information. If you’re reading or taking a course, look up the credentials of the author or instructor. Do they have experience? How successful have they been? Are there success stories from people who have used their teachings?
One essential thing to remember when reading and learning about alternative investments is to look for advice from a few different experts.
2. Narrow down your search.
Don’t start out trying to learn about all the different kinds of alternative investments available. That’s the quickest way to overload your brain. If you overwhelm yourself, you’ll just fatigue out and give up; you won’t end up picking any alternative investments. Pick one strategy that appeals to you, such as real estate. Learn about that one first. If you’re successful with it, then you can consider other alternative investments.
3. Let go of your fear.
Learning something new is usually quite challenging to start. This is especially true when it involves your money.
- Take the time to learn the basics of a new strategy.
- Do your due diligence when it comes to enlisting help.
If you remember these two things, you’re already at a great starting point.
4. Seek out advice & knowledge.
You can’t know it all before you even put a dollar in. Having a foundational knowledge is the crawling stage. At some point, if you want to walk and run, you’re going to need to put some money in the game and learn from experience. This can be scary and may even cause you to hold off on investing longer than necessary.
Your best course of action is to seek out a professional. No matter how much you read and watch, a professional will always have more experience. When you’re starting out, a trusted advisor or expert can be an excellent educational resource. They can help you avoid any beginner mistakes that could cost you a pretty penny.
In real estate investing, mortgage pools are a relatively safe method of pooled investing. These pooled investments allow investors to diversify among a few different real estate projects. This creates more security for your investment. Not to mention, it’s the only feasible option early on — you can’t afford to finance multiple commercial and residential projects out of pocket right out of the gate.
We’ve helped beginner and intermediate investors grow their savings as a Mortgage Investment Company (MIC) for years at Cooper Pacific. We believe in transparency and education for all clients. You should know where your money is being allocated, and you should understand how mortgage investing works so that you have a say. Get in touch with Jordan on our team today and start educating yourself.