Starting a real estate business can give you a very profitable career. There are many obstacles to overcome and things to learn before you can run a real estate business on your own. But in the end, this career path is worthwhile because it financially secures your future and offers you the potential of being your own boss.
To help you out in starting your journey as a real estate investor, I’ve provided for you the ultimate guide for starting a real estate business. Please feel free to share any comments you may have below.
1. Are you ready to be a real estate investor?
As with any type of business, determination is key. The real estate investing world is not easy and if you are not willing to be fully committed to your real estate career, then stop right here. You must devote your time, effort and energy to this business. In addition, you need certain characteristics such as being good with numbers, being a hard worker, and being patient. That is why before you start a real estate business, ask yourself if such a business is the right thing for you or not.
2. Did you educate yourself enough about real estate?
As a beginner real estate investor, you are a student craving knowledge. You need to educate yourself enough about real estate so you don’t get lost in the process. Don’t worry, you don’t need to go to college or obtain a master’s degree to educate yourself about real estate. There are a number of different ways and resources that will teach you everything about real estate investing. So how can you get a real estate education?
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Real estate books
Despite the growing use of technology, books are still considered one of the best learning strategies. Books about real estate investing and starting a real estate business are countless and accessible. To help make your search for the best real estate investment books easier, read this blog: “10 Best Real Estate Investment Books to Read in 2018.”
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Real estate blogs
If you prefer to make use of the immense widespread of technology, then online learning is the better option for you. The internet is filled with different real estate investing websites containing real estate blogs. With a click of a button, you can have access to different real estate platforms that have blogs on all different matters related to real estate. Mashvisor, for example, contains over 2,000 blogs that deal with every little aspect of real estate investing. We have blogs that will guide you through every step of your career. You can learn why starting a real estate business is the right path for you and how to make money in real estate like a pro. Check out Mashvisor’s knowledge center and start gaining knowledge the right way.
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Real estate mentor
People always say if you want to accomplish your goals, you need to surround yourself with like-minded people. Having a real estate mentor by your side will teach you everything you need to know about starting a real estate business. Real estate mentors are experts in the field of real estate investing and through their experiences, you will learn and grow to become a successful real estate investor.
Related: How to Find the Best Real Estate Investment Mentor
3. Did you check your financial situation?
Before starting a real estate business, you should check your financial situation. It’s funny because you read so many articles about investing in real estate with little or no money, but this is not entirely true. You need money to make money even if it’s a small amount. There are plenty of ways to make money in real estate with the money you already have. Budget your income, expenses, and savings to get a clear idea of where you are financially. Also, check your credit history and see if you’re qualified to get mortgage loans. Once you check your financial situation, you can get an idea of whether or not starting a real estate business is suitable for you.
4. Did you choose your real estate investment strategy and type of property?
By now, you should have gained the required knowledge for real estate investing and checked your financial situation. So you’re pretty familiar with the different aspects of real estate investing and how big of an investment you can afford. It’s time to choose your investment strategy and type of investment property.
There are two main types of investment strategies to choose from: long-term investments (traditional rentals) or short-term investments (Airbnb rentals). You want to choose an investment strategy that offers a high return on investment and good cash on cash return. To help you decide which investment strategy works best for you read: “Top Six Real Estate Investment Strategies.”
As for the type of investment property, choose a property that is easy to manage and meets your financial situation. You want to invest in positive cash flow properties that are guaranteed to generate a profit. You can invest in condos for rent, townhouses, single-family homes or small apartment buildings. Whichever you choose, make sure you do thorough research about it.
5. Did you analyze different real estate markets?
When starting a real estate business, you don’t have to limit yourself to just your own location. You can invest in different markets nationwide. So many real estate investors choose to invest in out of state investment properties because they offer high cash flow, rental income, and cap rate. So, analyze different real estate markets in numerous locations and see which one offers the highest profitability. A real estate market analysis (comparative market analysis) should be conducted to choose the best performing properties in the best locations. Mashvisor can help you analyze investment properties all over the US. To learn more about real estate market analysis and how it is performed, click here.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
6. Are you using the right tools?
The next phase of starting a real estate business is finding the right real estate investment tools. There is one main tool that you will need to use in order to make smart investment decisions throughout your career: rental property calculator (investment property calculator). With a rental property calculator, you can easily conduct a real estate market analysis and investment property analysis without having to waste time or energy. If you want a rental property calculator guaranteed to give all the qualities which other tools lack, check out Mashvisor’s.
Related: Mashvisor: The Best Rental Property Calculator You Could Ask for
This tool also helps property investors determine if a certain property will be a good investment opportunity. It does this by calculating different values related to the property which include cash flow, cash-on-cash return, and cap rate.
To learn more about our product, click here
7. Did you start building a real estate investment network?
Starting a real estate business is not going to happen on your own. What you need is a real estate investment network. Your real estate network should consist of all sorts of professionals such as real estate agents, real estate lawyers, insurance agents, professional property managers, accounts, other real estate investors, etc. You should build your real estate network before you buy your first investment property because the people in your network will help you make smart decisions to ensure your complete success.
Related: How to Build and Maintain a Real Estate Investment Network
8. Always start part-time
No matter how confident you may feel, starting a real estate business should always begin as part-time. That way you can slowly familiarize yourself with the work field without having to lose your current job which secures your source of income. Once you have gained enough experience and you know how much cash flow you can actually get for real estate investing, then you can decide if you want to take your real estate business full-time.
Before I leave you to embark on your journey of real estate investing, here are a few brief tips to help you out when starting a real estate business.
- Stay in check with the law: Always check the laws and regulations of real estate in your area to avoid investing illegally.
- You must be able to cope with poor housing markets: It’s not always roses and sunshine in real estate and you must build your connections to handle the tough times coming and make sure you know how to ease the hidden costs of vacancies and bad tenants during these poor times.
- Be patient: Making money in real estate is not an easy process and takes time. You need to be patient as a real estate investor and not give up automatically when you don’t see results.
- Always have a vision: Goal planning is a must not only when starting a real estate business but in any other business as well. Always have a vision in mind that you want to reach.
To help you start your real estate business, check out Mashvisor for all the latest tools. Click here to start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after.