Are you ready to get started in real estate investing?
Real estate investing is without a doubt a very lucrative form of investment. With all the different real estate investing options to choose from, it’s hard to know where to start. But if there’s one thing for sure, once you begin your real estate investing career, you will be generating a positive cash flow that can lead you to financial freedom. So, what is the best way to get started in real estate investing? Continue reading to find out!
Best way to get started in real estate investing: Educate yourself
First things first, gain the knowledge! Many beginner real estate investors get lost in real estate investing because they don’t do their homework beforehand. It’s a big world out there and if you’re not thoroughly prepared, then don’t even bother asking what the best way to get started in real estate investing is. Educate yourself about all the different aspects related to real estate. There are many tools and resources to help you out such as:
As Ernest Hemingway would say: “There is no friend as loyal as a book.” There are so many books out there that talk about real estate investing, concerning every little detail that would come to mind. Some of the books recommended by many real estate investors for those beginning to learn real estate investing are:
1) Think and Grow Rich by Napoleon Hill
2) Build a Rental Property Empire by Mark Ferguson
3) The Millionaire Real Estate Agent by Gary Keller
And much, much more! To find more must-read books about real estate investing, check out this article: 10 Best Real Estate Investment Books to Read in 2018.
Blogging is the new black, as some would say. So many websites are established for the sole purpose of blogging information with the aim of educating their readers. Mashvisor’s Knowledge Center provides more than 2,000 educational blogs about real estate investing, how to become a real estate investor, what to look for in an investment property and so much more! The list of choices goes on and on!
A mentor is someone who is there to teach you what you want to learn. You will be surprised at how much knowledge you will gain from a real estate mentor. They will guide you along the way and give the best advice to ensure that you succeed in your real estate business.
Related: How to Find the Best Real Estate Investment Mentor
Online real estate investing courses
The great thing about online courses is that they provide you with educational videos that are designed to teach you the best way to get started in real estate investing. There are many online courses to choose from; Udemy and BiggerPockets are just two of many.
Best way to get started in real estate: Find the right location
Behind every successful real estate investment is the right LOCATION! When you find the right location for your investment property, you will guarantee a successful profit in return. What’s the point of finding a cheap investment property, only to realize that the location lures away tenants? The key to finding a lucrative location is by asking yourself whether or not it has a high demand for real estate. Does the area have any future developments? Does it provide all the public amenities that tenants look for? Are home prices and rental income high? The list is never-ending.
To help make your search for investment properties easier, use Mashvisor’s heatmap and property finder tool! You can use Mashvisor, for example, to search for investment properties based on the city of your choice in the US. The platform will give you a list of investment properties that are available for purchase in the area, and you can further customize your property search based on your budget, method of financing, or even the projected returns that you want your investment property to have.
Click here to use our Property Finder and find properties in a matter of minutes!
Related: How to Find Investment Properties Using a Property Finder Tool
Best way to get started in real estate investing: Pick the type of investment property
Before getting started in real estate investing, property investors should familiarize themselves with the various types of investment properties out there. Do you want to invest in condos, single-family homes, multi-family homes, or townhouses? Each type of investment property has its own attributes. That is why you should understand what each type requires and the benefits of each one. All in all, the best type of income property would be whichever offers the highest return on investment.
Best way to get started in real estate investing: Choose the type of investment strategy
There are two main types of investment strategies: long-term investments and short-term investments. The best way to get started in real state investing is to know which investment strategy suits your financial situation best.
Long-term investments (also known as traditional rentals) mean the property investor buys the property and rents it out for long periods of time. This is the most common way of real estate investing.
On the contrary, short-term investments (also known as Airbnb rentals) basically mean that property investors rent out investment properties for a short time period.
Best way to get started in real estate investing: Know your financing options
One of the biggest concerns that beginner real estate investors face is FINANCING! However, there are many options available for investment property financing. The shocking thing is property investors can even buy a rental property with little or no money at all!
Real estate investors can buy a rental property with cash or apply for a loan. Loan options range from mortgage loans, private money loans, hard money loans, seller financing or owner-occupied loans. Educate yourself on what is required to obtain loans and you will be good to go.
Best way to get started in real estate investing: Real estate market analysis
The best way to get started in real estate investing is to actually know whether getting started is a good decision or not. How can you determine this? By performing a real estate market analysis! A real estate market analysis is the process of evaluating investment properties to explore expected profit and risks.
Real estate market analysis (also called comparative market analysis) allows investors to predict the profitability and future value of the investment property before purchasing it. You are able to compare properties with similar characteristics to your property and see what the better choice is.
Mashvisor’s rental property calculator can help you perform a real estate market analysis and compare properties according to your search criteria including the projected returns of a property, cap rate, cash on cash return, and cash flow.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Related: How To Perform A Real Estate Market Analysis
Best way to get started in real estate investing: Tips from the experts
1. Work with an agent
Real estate agents are professionals and can help you and do most of the work. This is the best way to get started in real estate investing especially for new beginners.
2. Select good tenants
Once you purchase the right investment property, you would need to find the right tenants to rent out your property to. Pick tenants who pay rent on time, keep the property in good condition and follow the lease policies.
3. Set appropriate rent
You want to set a reasonable rent price, one that will keep your property occupied and put money in your pockets. Charging too much will leave you with an empty income property while charging too little means you won’t generate enough cash flow.
Related: How Much Should I Charge for Rent?
A final thought
The best way to get started in real estate investing is to actually want to. Once you are sure that real estate is the world you want to enter, your journey begins. Educate yourself and gain enough knowledge to be able to compete with even the most experienced investors.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.