You Should Invest in Real Estate—and Here’s How to Get Started

If you’re considering ways to build long-term wealth, I think you should invest in real estate. 

My husband Phil and I started Henderson Properties from scratch, and today, we manage over 700 properties in the greater Charlotte area. Real estate has given us financial stability and growth. I’m excited to show you how to begin this rewarding journey.

Why Real Estate Investment is Worth Your Time

Real estate management is not just about getting rich quick. It’s about creating a stable income stream and diversifying your investment portfolio. Real estate provides opportunities to create a steady income and can be a hedge when the economy goes south.

Phil and I started with no loans, financial backing, or family money. Every decision was critical, and each success felt monumental, no matter how small. I still remember the pride of managing our first 20 properties, then 55. Each step forward reassured us that we were on the right path. It wasn’t easy, but it was worth every effort.

First Steps

To get started in real estate investment, you’ll need to start kind of slowly and set a solid foundation. From educating yourself on the market to managing your finances and building a network, the following steps will guide you to becoming a successful investor:

1. Do Your Research
   When Phil and I began, there wasn’t a handbook to follow. We learned by doing and seeking out information wherever we could. Today, there are countless resources available—books, online courses, seminars, and more. Knowledge is your foundation. The more you know about the market, different types of properties, and investment strategies, the better prepared you’ll be.

2. Get Prepared
   Real estate investment doesn’t always require capital. While we started without loans or family money, we carefully saved and budgeted. Understand your mortgage options and look for financing that works best for your situation. Every dollar saved brings you closer to your first investment property.

3. Start Small
   Don’t feel pressured to start big. Phil began managing a few rental properties while still working his full-time job. This gave us the experience and income needed to grow our portfolio. Consider starting with rental properties or small fixer-uppers. They can be more manageable and provide steady income while you learn the ropes.
   
   It helps if you start young, but it’s never really too late to begin investing. If you are older (and wiser), you can still reap the cash rewards or pass along the investments to your kids and grandchildren.

4. Buy Low
   Be patient for a good deal, and don’t be tempted to renovate it to become the best house on the block. Renters usually rent a house based on floor plan and location. Simple, clean updates are great, but don’t break the bank doing so.

5. Build Your Network
   Phil built relationships in the community and the real estate industry, which were like gold as we expanded our business. Attend local real estate events, join investment groups, and connect with other investors. Building relationships can open doors to opportunities and provide support and advice when you need it.
   
   The team at Henderson Properties is a one-stop shop that screens tenants, maintains and repairs properties, and provides other services. We require our skilled property managers to have or obtain their real estate license because knowledge is power, and this does help in assisting our investors.

6. Diversify Your Portfolio
   During the financial crisis, we noticed a shift in the market and adapted by increasing our property management services. By having different types of investments, you can protect yourself when one area of the market is down. Look into various property types and markets to spread your risk and increase your chances of success.
   
   While the stock market can “crash,” it also has natural ebbs and flows. We have found that, on average, real estate in our market typically increases each year by about 10% in profit gain. Once the investor pays off a property, we call that “mailbox money” each month coming in for them

7. Maintenance and Management
   We started our property maintenance division to handle repairs and upkeep for our properties, ensuring they stayed in good condition and retained their value. Whether you handle maintenance yourself or hire a team, keeping your properties well-maintained is essential for long-term success.

8. Overcome Challenges and Learn From Your Mistakes
   In our early days, we took on a property that seemed like a great deal. The location was promising, and we were excited. However, we soon discovered extensive maintenance issues that we hadn’t anticipated. Instead of getting discouraged, we rolled up our sleeves and tackled each problem head-on. We learned the importance of thorough inspections and due diligence.
   
   The key is to learn from those experiences and keep moving forward. We taught ourselves to make strategic decisions based on necessity, not just desire. Every setback was a lesson that helped us refine our approach and improve our business.

Real Estate Isn’t Easy, but It’s Rewarding

Investing in real estate takes dedication, education, and a willingness to learn and adapt. Start small, build your network, diversify your investments, and maintain your properties diligently. The journey won’t always be easy, but the rewards are worth it. 

Remember: everyone needs a place to live! The supply may be low, but there is always a demand.

Please consider picking up my book Starting from Scratch and visit my website for more resources on how to break into the investment community.