In real estate, finding the best real estate investments is a matter of having the right resources. So, continue reading to find out how to go about finding these investments.
What many people don’t know is that a real estate career is attainable for absolutely anyone. But, they always fear to make the wrong move and to end up at a loss. In reality, finding the best real estate investments is as attainable as getting into the business. All they have to do is to get access to the best resources. This, in fact, does not even require any experience in the field at all. Therefore, here is what you need to do in order to find the best real estate investments for a lucrative business:
#1. Acquire real estate knowledge
If you are wondering how to become a real estate investor, then it is easy. Start with acquiring real estate knowledge. As a matter of fact, you do not need a Ph.D. in real estate to become an investor. But, it is worth a little research on your side to know what it takes to become one.
One thing is for sure, to start a real estate career, you must get your stuff in order. By stuff, we mean financial means, expectations, and, of course, long-term and short-term goals. That is exactly what you need real estate knowledge for. Basically, once you find out how much you need and what it takes to set milestones, it will be easier for you to put together a business plan that suits your financial dreams.
For this purpose, you can always rely on real estate websites if you are not fond of reading real estate books. There are so many websites out there to educate wanna-be investors on the ins and out of real estate investing. In fact, this is exactly how the most successful real estate investors were able to make it to the top of their business. We suggest that you take a look at Mashvisor’s blog and The BiggerPockets’ blog as well. These are pitch perfect for beginner-level real estate education.
#2. Choose a real estate investment strategy
While going through the process of acquiring real estate education, you will come across various investment strategies. You will find out that each investment strategy has its own criteria for the best real estate investments.
As for the types of investment strategies, there are mainly two types: 1) Short-term investment strategies, and 2) Long-term investment strategies. Of course, each of these types serves different goals based on what a real estate investor wishes to accomplish. Therefore, it makes it more about your ambition rather than the type of strategy itself.
Most real estate investors, we find, prefer to invest in long-term investment strategies. This type includes investing in income properties or assets that generate a steady income, thus, making rental properties the best real estate investments for them. This type of income property is reliable for those who desire to secure retirement. But, still, choosing the right rental strategy can make all the difference. So, this leaves you with two options: 1) traditional rentals and 2) Airbnb rentals. Each makes for the best rental strategy. Each, of course, serves a different goal depending on what your plan is for making money in real estate.
#3. Choose a type of real estate to invest in
At this point, you know that there are so many types of real estate properties that you could invest in. So, choosing a specific type of income property will help you with proper planning. For example, if you choose to invest in rental properties, ask yourself what type of rental property would be best based on 1) your financial goals and 2) your financial situation (can you afford it?).
As a beginner, investing in a single family home would be a great choice. Still, if you are comfortable and confident enough, it would also make sense to invest in a duplex or even a quadruplex at once. This way, not only will you acquire experience but you will also be able to grow your real estate investment portfolio in no time. Therefore, what really determines the type of real estate is your confidence and not your experience.
#4. The best real estate websites
As for where to find the best real estate investments, you can always count on real estate websites. More specifically, listing websites. There are a bunch of these sites where you can find the greatest deals ever.
What makes these websites special is that most of them provide you with the numbers you need to spot the best real estate deals in the real estate market. In other words, they already have all the calculations ready for you to view and decide. Zillow, Trulia, and Mashvisor are pretty much the best when it comes to buying investment properties.
#5. Choose a location
“Location, location, location” is what you’re going to come across a lot in the business. In fact, the best real estate investments are in the best locations. Thus, to find these locations a comparative market analysis is a must.
Basically, the comparative market analysis consists of finding real estate comps. These comps are similar investment properties to the one you’re viewing. Why is it important? Well, 1) You can determine whether it is worth the price, 2) You can determine how much to charge for rent for a rental property, and 3) You can pick the best locations based upon the appreciation rates in that area.
#6. Choose the right income property
By choosing the right income property, we mean one with the highest rate of return. You can determine that by conducting a thorough investment property analysis. With this process, you’ll be able to find the best real estate investments with the highest profit figures. Measures like the CoC return, cap rate, and cash flow are what you really need to pay attention to as that is how you’re going to be making money in real estate.
#7. Use real estate investing tools
For the most accurate results, there is no way other than using the right real estate investing tools. The rental property calculator, the investment property calculator, the cap rate calculator, and the cash on cash return calculator are all tools that you could use. These will spare you the whole process of comparative market analysis and investment property analysis. Make sure to check out Mashvisor’s analytics tools that every real estate investor needs!
#8. Find a real estate agent
If you are not into all that, then leave it all behind and find a local real estate agent to do the work. An agent is a professional and they know how and where to find the best real estate investments. Thus, to play it safe, make sure the agent is investor-friendly. Also, expect to pay a commission to the agent at the closing and add it to your budget plan as well.