Beginner's Guide to Real Estate Investing for Women

Written By Amelia McGee

Diving into the world of real estate investing can be exciting yet daunting, especially for beginners. Have no fear, we are here to help! Let’s take a look at the 10 steps women can take to get started in real estate investing today!


#1 DEFINE YOUR “WHY”

There is no “right way” to invest in real estate. Understanding your "why" can serve as a guiding principle, helping you make decisions aligned with your values and aspirations and ultimately contributing to a more purposeful and fulfilling real estate investing (REI) journey.

Consider these questions when defining your why:

  • Dabbler or full-time?

    Understanding whether REI will be a side project or if your goal is to pursue it full-time, is a key factor.

  • Cashflow or appreciation?

    Are you investing for immediate cashflow? Or would you rather leverage appreciation to build a nice retirement plan?

  • Time commitment?

    Are you busy and want to make your money work for you while you sleep, or are you willing to hustle to make every dollar you can?

#2 DETERMINE YOUR COMPETITIVE ADVANTAGE

Identifying and leveraging a competitive advantage are crucial for sustained success. It's about understanding what makes you or your business unique and valuable in the eyes of customers, and using that strength to stay ahead in the market.

Consider these aspects when ironing out your competitive advantage:

  • Network

    Do you have close friends and family already involved in the investing field? Is your uncle a contractor or your best friend a lender? Utilize these relationships for education or partnership opportunities.

  • Industry Expert

    Are you a lender, contractor, realtor, property manager, appraiser, etc.? Use this experience to boost your investing confidence.

  •  Local Market

    Is it possible for you to find deals in your market? Is there a steady inventory of properties within an hour radius of your home?

  •  Out of State Investing

    If the market you live in is not prime for investing, do you have a competitive advantage in an out of state market? Did you go to college or have family in a worthy investing market?

#3 ANALYZE YOUR PERSONAL FINANCIAL SITUATION

Analyzing personal finances empowers you to take control of your financial future, make informed decisions, and work towards achieving your financial objectives in REI.

Take a look at:

  • Budgeting

    Make sure you are great at managing your own budget before you take on a project. Chances are you will be handling more money than you have ever dealt with before.

  • Partnership or Solo

    If your goal is to own everything yourself, your strategy and bank account will look a lot different than if you have partners.

  • Funds

    Do you have the funds to buy a property? Or do you need to get creative? This will help you decide both your market and strategy.

  • Leverage

    Based on your own funds, will you be financing your properties or paying cash?

#4 CHOOSE A STRATEGY

Choosing a real estate investing strategy is crucial as it serves as a framework to your desired REI outcomes.

Here’s some common real estate investing strategies:

  • Buy and Hold (Turnkey)

    Buy a rent ready property. This is best for a more “hands-off” approach. It doesn't involve a lot of rehab and should be fairly passive.

  • Flipping

    Buy a property, fix it up, and sell it for a profit. This is “hands-on,” with lots of moving parts, but can be a good way to build capital for other investments.

  • Wholesaling

    Find properties in distress, get them under contract, then reassign them to an end buyer. This is “hands-on” and requires people & negotiation skills.

  • Short-term Rental

    Think Airbnb, VRBO, and vacation rentals. These properties are high cash flow but require great attention to detail and extra time to get one up and running.

  • Midterm Rental

    Furnished rentals for traveling professionals (usually nurses). These increase cash flow but involve some up front work.

  • BRRRR

    Buy, Rehab, Rent, Refinance, Repeat. You’ll need to know all facets of the BRRRR steps, but this can be a great way to reuse capital.

#5 CRYSTAL CLEAR DEAL CRITERIA

Figuring out your buy box can make the searching process feel like a breeze!

Crystal clear deal criteria includes:

  • Asset Class

    Are you looking for a single family home? Duplex? Campground?

  • Rehab Level

    Do you want turnkey? Cosmetic? Or are you down for a full gut project?

  • Location

    What market are you looking in? What neighborhood class are you wanting to invest in?

  • Other Deal Markers

    Know at least one of the following markers that you are looking for: cash flow, COC, ROI, or cap rate.

    Example: I am looking for a 5-10 unit in the Cedar Rapids Iowa Area, B- class neighborhood, value-add preferred (rehab, management or under-rented), cash flows at least $100/door.

#6 LOCAL OR OUT OF STATE

When it comes to investing in or out of state, consider these pros and cons:

Pros - Local Investing

  • Market knowledge

  • Knowing nuances

  • Established network

  • Proximity

Cons - Local Investing

  • High purchase price

  • Low cash flow

  • Relying on yourself and not outsourcing

Pros - Out of State Investing

  • More affordable

  • Diversification

  • Systematizing & outsourcing

  • Better due diligence

Cons - Out of State Investing

  • Unfamiliar with laws

  • Dependence on others

  • Sight unseen/poor due diligence

#7 DIY or HIRE OUT

Doing-it-yourself or hiring out is a huge decision for your REI business.

Here are some tips on how to decide between the two:

  • Time & Energy

    If you have the time and energy to DIY your projects, go for it! It’s a great way to get started, increase your experience with renovations, and save some money.

  • Funds

    Sometimes the decision is made for you— if you don't have the funds to hire everything out, then you will need to DIY. And that's ok! We all start somewhere.

  • Location

    If you are in a high cost of living area and you are unable to invest locally, the decision is also made for you. You will have to hire everything out.

#8 BOOK RECOMMENDATIONS

Every investor has something to learn no matter how experienced they are. We love books as a learning resource.

Here are some great books to continue learning about REI:

#9 PODCAST RECOMMENDATIONS

If books aren’t your thing, podcasts are a great alternative to learning more about real estate investing.

Here are some insightful podcasts:

#10 JOIN THE WIIRE COMMUNITY

By joining the WIIRE Community, you will have access to a group of like-minded women looking to grow their real estate investing businesses. Our free membership includes perks like monthly virtual meet-ups featuring female industry experts, monthly Q&A's with Grace and Amelia, access to our member chat board, and more!

Remember, real estate investing is a journey, and each step you take contributes to your growth and success. With determination, education, and a strategic approach, women can excel in the world of real estate investing. Embrace the challenges, celebrate the victories, and enjoy the journey!

LET’S CONNECT!

Amelia McGee
Previous

How to Organize your Real Estate Investing Business
Next

Top Benefits of the Midterm Rental Strategy