But once your mind is set on this goal and you enter the market as a beginner real estate investor, you will find yourself facing a number of challenges that you did not even know existed and that you will need to overcome in order to succeed in the world of real estate investing.
So, what are the challenges that every beginner real estate investor will face in the early stages of his/her career? And how can you overcome these challenges and compete with even the most experienced of investors in the real estate market?
Becoming a Real Estate Investor: The Challenges
Becoming a real estate investor is accompanied by a number of different challenges that all experienced investors overcame, while beginner investors will need to overcome in order to move forward in their real estate careers.
There are four major challenges to becoming a real estate investor:
1. Real Estate Education
One of the main reasons why most beginner real estate investors face failure and/or quit on their real estate careers before they even get started is because they realize that they lack the knowledge which acts as the foundation and doorway to the real estate world.
In order to become a successful real estate investor, any real estate enthusiast will first have to educate him/herself about the ins and outs of the real estate market, including all aspects that may affect their investment careers.
This includes basic real estate knowledge such as investment property types and real estate investment strategies as well as financial and legal knowledge that any beginner investor will need in order to move forward in the world of real estate.
2. Finding Properties
Another challenge to becoming a real estate investor that most beginner investors would face is the challenge of finding an investment property. A beginner real estate investor would typically lack access to real estate investing sources and property listings that he/she can use to find the best properties for real estate investments. Beginner investors also lack the connections or access to a real estate investment network of other investors or real estate agents that can help them locate and understand the investment properties that they are interested in.
3. Analyzing Properties
Once a real estate investor has located one or more potential investment properties to suit his/her investment needs, he/she would still have to analyze all aspects of the property in order to determine its value and estimated profitability. In order to do that, beginner investors would have to gain sufficient knowledge of the metrics and values that determine the success of an investment property, and they will need to be able to calculate them and translate them into actionable results.
The main metrics that a real estate investor would need to understand and calculate for any investment property include:
- Cap Rate
- Cash on Cash Return
- Cash Flow
- Occupancy Rate
4. Matching with a Real Estate Agent
Becoming a real estate investor is not a journey that beginner investors should go through on their own. There are a number of real estate professionals that a beginner real estate investor would have to hire and rely on in order to make the most out of his/her investments, and on the top of that list are the real estate agents.
Real estate agents will help real estate investors throughout the different stages of their investment, and they will act as advisors and experienced professionals who will bring their negotiation skills and real estate knowledge to the table, adding much value to your investment venture.
One of the challenges that beginner investors face is related to finding professional and reliable real estate agents, understanding their role in the investment process, and identifying the characteristics that differentiate a good real estate agent from a bad one.
Becoming a Real Estate Investor: The Solution
While there are different solutions to the challenges of becoming a real estate investor, we aim to inform you about one way which can help beginner real estate investors in all of the areas mentioned above.
Mashvisor’s Blogs and Guides
When it comes to real estate education, Mashvisor offers hundreds of blogs and guides that are available for anyone to read.
These blogs and guides cover a wide variety of topics that are all related to real estate investing, including step-by-step guides that can enable beginner investors get a foothold in the world of real estate before they start investing.
Mashvisor’s Property Finder
Since a large portion of becoming a real estate investor is related to finding a good investment property to invest in, Mashvisor’s platform has a great focus on providing real estate investors with a number of tools of invaluable importance in trying to locate and find the perfect property for investment.
The Mashvisor Property Finder tool allows real estate investors to quickly and efficiently find investment properties in any state, city, or neighborhood within the United States. Additionally, the tool lets real estate investors look for specific properties using a number of metrics to match their search criteria, such as finding investment properties of a specific type or even within a set range of cap rate, and it all can be done within 0.1% of the time which they would otherwise need to spend on this task.
Mashvisor’s Property Analytics
In addition to the Property Finder, Mashvisor’s platform provides powerful and accurate property analysis tools which can help you determine the value of a property and calculate all the different aspects of that property, such as cash on cash return or occupancy rates, allowing investors to make the best investment decisions based on accurate qualitative and quantitative data more seamlessly than ever before.
Mashvisor’s Agent Program
Last but not least, Mashvisor utilizes a network of professional and high-quality real estate agents all around the US, connecting these agents with prospective real estate investors to help them make their investments more easily and more professionally.
Using the property analytics provided to you through our platform, you can then create easy-to-read reports related to your properties of interest and share them with your agent, or even your family and friends, to help you decide on the best investment property for your investment goals.
Becoming a real estate investor is a journey with many challenges and obstacles in the way. In order to succeed in your career as a real estate investor, you will need to find the best solutions to these challenges and learn how to overcome them while building a momentum towards your success as a real estate investor.
Using Mashvisor is one of the ways that can help you overcome these challenges, but it can also help you become a better investor and carry out your investment ventures with less time and more accuracy than other investors, giving you a natural advantage over other beginner investors and increasing your chances of success.