Real estate is generally regarded as one of the best ways to earn a passive income. However, actually earning a living buying and selling real estate is hard work. Multiple factors need to be taken into consideration before trying to make an earning in real estate. Still, there are four essential things that every newcomer to real estate needs to focus on before they get into real estate.

In Season 6, Episode 51 of The Making Bank podcast, we welcome guests Jake Stenziano and Gino Barbaro. Jake and Gino are multifamily real estate investors, educators, operators, and the founders of Jake & Gino LLC. They have managed to accumulate over 175 million in assets under management. They have also grown their real estate portfolio to over 1800 multifamily units as some of the leading experts in investing and operating in the multifamily real estate space. Jake and Gino have taken their experience and knowledge and are using it to teach others how to invest in multifamily real estate. Jake & Gino LLC is a multifamily real estate education company that was founded on the three pillars of sound apartment investing: buy right, manage right, and finance right. Today, their students have closed over 400,000 growing units and accumulated over 2 billion dollars in deal volume.

On the podcast, Jake and Gino go into detail about the three pillars of real estate. They share valuable insights on the right time to invest and what you should be looking out for before you get started in the multifamily real estate space.

If you’re interested in branching out into real estate, these are the four things that you need to do and really focus on if you want to become successful:

1. Think About Your Goals
The first and most important part of any plan is to have a goal. You need to consider your goals and exactly what you want to accomplish by getting into real estate. You need to figure out if you’re getting into real estate as a side hustle or if you want to make that your full-time job. Mapping out and setting your goals is essential because that’s the foundation for the rest of the decisions that you’ll be making in the real estate space. Also, it isn’t enough to just have goals; you have to have clarity on your goals. Make up your mind about what you want to accomplish, and then give yourself a time frame to achieve those goals. However, don’t make the mistake of overestimating what you can achieve in a short period. Real estate isn’t easy to get into and requires time to get things rolling. So don’t expect deals to come flying in as soon as you start in real estate. Take the time to inject yourself into the space properly and then work towards accomplishing whatever goals you set for yourself.

2. Pick The Right Market
Not everyone has the same goals. People come from different backgrounds with different motivations and objectives, which is why the right market for you may not be the right one for someone else. There are multiple factors that you have to look out for when choosing the right market. First and foremost is the location; it’s the most important factor for profitability in real estate. But you also have to take into consideration the size of the market, population and job growth, etc. All these factor in when it comes to how profitable and successful you’ll be. Picking the right market isn’t just about how much profit you can make, but it’s also a vital part of your business plan. Based on your market, you must choose how you will handle your investments — buying and selling short-term or long-term, or maybe you plan on buying and leasing. The market you pick needs to align with your purpose.

3. Build Strong Relationships
The foundation of the real estate business is your relationship with people. The relationships you build with brokers and clients are crucial to your success. The relationships you create lead to referrals, better deals, and overall help you build a more sustainable business. Building meaningful relationships is one of the most essential parts of business. However, mastering the art of establishing these relationships is incredibly difficult. You need to be someone that’s liked and is trustworthy. Be someone that clients and brokers know they can rely on. Learn to understand people and help them achieve their own goals. It’s also not enough to just connect with people; you need to establish relationships and then keep them up. Follow up with your customers, maintain an online presence and stay associated with people. Ultimately your success depends on the people around you, so make sure you’re continually establishing and building strong relationships with people.

4. Get Educated
It’s no secret that in order to master something, you must continually learn and educate yourself. Real estate is no different; you need to learn about the processes essential to running a real estate business. It’s not about knowing everything you possibly can before you decide to get started in real estate. You educate yourself so that you can start on the right foot. It helps eliminate the unknown and the uncertainty that comes with stepping into a new profession. A little education goes a long way, and that’s why it’s so important to educate yourself continually. Read books, listen to podcasts, enroll in courses and just research the space before you decide to start in real estate.