Beginner Investors Becoming a Successful Real Estate Investor by Peter Abualzolof September 24, 2016January 28, 2019 by Peter Abualzolof September 24, 2016January 28, 2019 The benefit of investing in real estate is making your money grow so you have more in the future. Rental properties are providing retirement incomes with excellent returns on investment for many. The goal is to make enough profit to cover the costs of the property such as the mortgage payment, taxes and insurance. Those who have acquired an in-depth knowledge have become effective real estate investors and generate positive cash flow to buy more properties. To become a successful investor, consider these tips. Investment Process Basics Understand the investment process before starting the search property. There are numerous variables to learn such as valuation and understanding the demands of being a landlord. Finding, valuing and researching properties is simple but not easy, you could find yourself at a loss if you don’t understand the basics of real estate investments. Once you understand the basics, investing can be a simple practice. Mashvisor has put together tools for finding and valuing real estate investing to make the basics easier to grasp. Be a Market Expert Successful real estate investors become experts on their selected market. You must be well informed on current trends, including any changes in rent, income, interest rates, and unemployment and crime rates. Having adequate knowledge on the real estate market allows you to recognizing current market position and plan for the future to become a more effective investor. Being knowledgeable of the market enables you to forecast trend changes, allowing you to easily identify potential opportunities. Plan Ahead Before making the purchase, always envision the ideal exit strategy and worse case scenario. You should expect a long-term hold on the investment but if that didn’t work out and you want to sell it, will you be able to recover your costs or find potential buyers? Before putting your money on the line, you should have assurance that you’ll be able to financially survive if the worst happened. Make sure to be diligent about assessing the potential investment by analyzing multiple variables such as cap rate, cash flow, expenses and vacancy rates. Find an Experienced Professional It’s key to find an experienced real estate investor agent to purchase an investment in a reasonable amount of time and on favorable terms. Buying an investment is challenging so make sure to find a competent agent that will know how recent changes in the market should factor into your investment decisions. Not every Realtor possesses the required knowledge of real estate investing, which is under a different set of standards than buying or selling a home to live in. Ideally, you will want to find an agent that has personal investment experience. It will be to your advantage if they have gone through the process and typically; they’ve worked with other investors so it will be easier to work with them. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL AgentLong-Term StrategyRenting Out 0 FacebookTwitterGoogle +PinterestLinkedin Peter Abualzolof Peter is Mashvisor's Co-Founder and CEO. The idea to create a platform which provides readily available real estate data and analytics to investors quickly and efficiently came out of Peter's own experience. Towards the end of the "Great Recession," being confident in his real estate investing skills (real estate is a family hobby for him), Peter started researching multiple markets as the Bay Area, where he lived, was unreasonably priced and not ideal for investing with his budget. He had lost all opportunities after 2-3 months of putting offers on properties in multiple markets as researching each market and property was taking him way more time than experienced investors so there was no way for him to find a high performing property without accelerating the research process. That's how he thought of Mashvisor. Previous Post Is real estate a good investment? Next Post Buying Investment Properties With No Money Related Posts 5 Reasons People Are Scared to Invest in Real Estate Should I Use My Savings to Buy a Family Home or a Rental Property? 25 Real Estate Investing Terms Every Beginner Should Know The Investor’s Guide to Housing Ratio The 8 Hard Truths About Real Estate Investing Can I Invest in Real Estate with a Full-Time Job? 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