Real estate investing is often touted as a fantastic way to build wealth, and sometimes, the market heats up to the point where everyone wants in. During these hot periods, seminars pop up across the country, promising life-changing results. However, only about 5% of attendees ever purchase even one investment property. Why? Because while real estate investing is simple, it’s not easy.

If you’re ready to dive in, here’s a straightforward four-step plan to help you get started and work toward financial independence.

Step 1: Buy Homes Below Market Value

The cornerstone of successful real estate investing is buying properties for less than their full market value. Surprisingly, many homeowners are willing to sell at a discount, especially when faced with financial distress.

Finding Motivated Sellers

Motivated sellers are individuals who need to sell quickly due to circumstances such as:

These sellers are often more flexible and willing to accept offers that don’t involve all cash or full asking prices. Your role as an investor is to provide them with a solution that benefits both parties.

Step 2: Develop a Marketing Plan to Find Sellers

Locating motivated sellers takes effort and strategy. Here are some effective methods:

Door-to-Door Prospecting

A tried-and-true approach, door-to-door prospecting involves reaching out directly to homeowners. This hands-on method is highly effective but requires dedication and time.

Other Strategies to Find Sellers

Step 3: Frame Offers That Solve Problems

Once you’ve identified a motivated seller, the key is crafting an offer that benefits both you and the homeowner. Real estate investing isn’t about exploiting others—it’s about providing solutions.

Win-Win Offers

Successful investors use creative financing methods such as:

These techniques minimize the need for large cash outlays, making it possible to invest even with limited capital.

Step 4: Plan Your Exit Strategy

Your profit is determined when you buy a property—not when you sell it. Always have a clear plan for how you’ll turn the property into profit.

Common Exit Strategies

Never purchase a property without knowing exactly how it fits into your investment strategy.

The Missing Ingredient: Determination

The steps outlined above can be executed in as little as three to four hours per week, even by part-time investors. What separates successful investors from those who give up is determination and perseverance. Stick to the plan, and within months, you could be well on your way to financial independence.

Start small, stay consistent, and remember: the journey to wealth through real estate begins with the first step.