Real estate investing – three little words that can sound so daunting. The concept can be overwhelming because it takes time, money, and education. Not to mention the uncertainty about your return on investment. But by learning from different resources and from the mistakes you’ll make, you can become a successful real estate investor. Here are the 6 steps of getting into real estate investing.
1. Educate and Evaluate Yourself
The first thing you want to understand before investing is your financial situation. How much do you spend on average per month? Try to reduce expenses before investing to maximize profits. Find out what of a loan you are eligible for.
You then have to thoroughly educate yourself about real estate to know what type of investor you want to be. Ask yourself, “Am I interested in fixing up properties and selling them (“fix and flip”) or, am I interested in buying ready-homes and renting them out (“buy and hold”)?” If you need a better idea of investment strategies and goals, check out The Expert Guide to Real Estate Investments. Learn about the different strategies as much as you can beforehand; it helps you build confidence in yourself and your investments.
Then, understand what you’re seeking exactly. What are your personal and financial goals for investing? Is there a certain amount of income you want to obtain every month? Finally, write down your goals; studies show those who write down their goals are more likely to achieve them. It also helps if you have access to the right real estate investing tools, depending on the strategy you wish to employ. For instance, if you plan to start an Airbnb business, an Airbnb calculator will prove to be very useful.
2. Build a Support System
To continue your education, create a network of real estate friends. Chat with experienced investors, go to real estate meetings and ask about their experiences. Something thing you shouldn’t do is attend pitches and try to invest – at least not as a newbie. You can offer to be an intern to one of the investors that helped you as a way to gain knowledge. A good option for networking and learning is attending The National Real Estate Investor Associations (REIA) clubs in your area. There is usually a presentation given at the meeting and members announce deals or opportunities.
3. Form a Team
After networking and meeting others, you should be able to form a “team” to help you invest. Successful real estate investors have others take care of certain tasks, especially when they have a lack of knowledge or experience. Some people you’ll need to find are appraisers, general contractors, lenders, real estate agents, real estate attorneys, title companies and marketing assistants. Know who you’re going to ask help from before looking for properties. Furthermore, if you are planning on participating in real estate syndication, you need to find the right company.
4. Figure Out Your Schedule
Outline a schedule of when you’ll be able to focus on your investments, especially if you are working full-time. When are good days to read about real estate investing? When can you meet with your acquaintances to discuss future plans and look for properties?
5. Be Passionate
Now that you have read guides, met many people, formed relationships, and learned about investing, it’s time to prove your love to real estate. If you realize you’re not really interested in real estate, it probably isn’t what you were meant to do. If you want to create a long-lasting business of investments, be engrossed in real estate and treat it as a proper business. With that being said, patience is very important. Real estate investing will have a mixture of good and bad experiences but the outcomes will be worth it.
6. Begin Investing
If you feel like you have the foundation of knowledge and resources, start the actual investing process. Talk to your bank and start your search with a Property Finder. Again, the detailed step-by-step guide of how to find a property is a great crash course. After your first investment, the key is improving from lessons learned and constantly getting real estate tips.
Real estate investments are awesome if you’re genuinely interested in learning, committing, and being patient about your investments! Educating yourself and creating a positive cash flow are the two most important ways to become a real estate investor.
What helped you become an investor? What were the most helpful resources to you? What was your most important lesson learned?
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