Many people are stuck in low-paying jobs that they hate but have to do it just to pay the bills. If this sounds familiar, maybe you should consider becoming a real estate entrepreneur. Becoming a real estate entrepreneur is a great way to build wealth and be financially free. But what is a real estate entrepreneur? What does a real estate entrepreneur do?
Well, a real estate entrepreneur (otherwise known as a real estate investor) is basically someone who invests in real estate, either passively or actively. There are many ways to make money as a real estate entrepreneur. But before we go through how to become a real estate entrepreneur, why is it something you should consider?
Why Should You Become a Real Estate Entrepreneur in 2020?
Investing in real estate has many benefits including cash flow, tax benefits, appreciation potential, and leverage. Even though making money in real estate is not easy, you have endless earning potential. When done right, a career in real estate can be more financially rewarding and more fulfilling. Real estate had made and continues to make many millionaires.
Also, there is no better time than now to become a real estate entrepreneur. Real estate investing has become popular in recent years because of low-interest rates and rising property values. There are many highly active and profitable housing markets. The real estate investment opportunities available to a real estate entrepreneur are numerous. In fact, there have never been more ways to get started in real estate. You can always find something that suits you.
How to Become a Real Estate Entrepreneur
Becoming a real estate entrepreneur could be a great idea. However, it is not for the faint of heart. The real estate business is filled with risks and challenges. But with an understanding of the fundamentals of real estate investing, one can build massive wealth in real estate over time.
One of the distinctive characteristics of a real estate entrepreneur that sets them apart from average investors is their high ambition. In spite of the challenges, real estate entrepreneurs usually have an inexhaustible desire to succeed. If you have been thinking of how to become a real estate investor in 2020, you first need to have the right mindset. Here are some simple steps you can follow to begin your career in real estate:
1. Learn the Basics
The first step to becoming a real estate entrepreneur is to learn the basics of real estate investing. You don’t need to earn a college degree to get into real estate. However, it’s crucial to have some basic knowledge about real estate transactions, financing options, real estate laws, real estate terms, and trends.
In this day and age, it’s very easy to access information, both for free or paid. This includes blogs, books, YouTube, webinars, online courses, etc. You can learn about the basics of real estate investing for free by browsing Mashvisor’s real estate investment blog. The information you get here will give you a solid foundation to kickstart your journey of becoming a real estate entrepreneur.
2. Develop a Real Estate Investment Business Plan
Real estate investing can be demanding and complicated for a first-time investor. To become a successful real estate entrepreneur, you should approach it as a business. Start by setting your investment goals. Next, figure out how you want to achieve those goals. Having a business plan helps you to be organized and maintain focus on your main goals. Without a solid plan, it is easy to be distracted by minor setbacks.
Learn More: Developing a Real Estate Investing Business Plan for Beginner Investors
3. Build Your Real Estate Team
Becoming a real estate entrepreneur is not a solo endeavor. If you are just starting out in real estate, it would be wise to build a basic team of experts who can compensate for your lack of experience. A team with separate sets of skills will help you handle different aspects of real estate investing. With a competent team to help you, you will be able to maximize your return on investment and avoid common mistakes that are made by beginners.
You may start with a small team, but as your business grows, so will your team. Some of the professionals to consider adding to your real estate team include real estate agents, home inspectors, mortgage brokers, accountants, and attorneys.
4. Choose a Real Estate Investment Strategy
As mentioned earlier, there are many ways you can make money in real estate. The optimal investment strategy and property type for you will depend on a number of factors, including your investment goals, location, and financial capacity. For instance, you can purchase an investment property and rent it out as a short-term rental or traditionally. Residential real estate investments are the most common among beginner real estate entrepreneurs.
Even if you can’t access enough capital to buy an investment property, it is still possible to invest in real estate with no money. You can try other strategies like wholesaling, house hacking, or real estate partnership.
As you begin your journey of becoming a real estate entrepreneur, you should focus on one strategy that best suits your investment goals and situation. As you learn the ropes, you can diversify later.
Related: How to Choose the Best Real Estate Investment Strategy for You
5. Make Your First Investment
Building wealth with real estate starts with a single investment. Therefore, to become a successful real estate entrepreneur, you need to find and purchase your first property and build up from there. Make sure your finances are in order before you even begin your investment property search.
When it comes to buying rental properties, you first have to evaluate the real estate market. Location is the most important factor in real estate investing. You need to understand the market in which you intend to purchase your first investment property. Check the demographic trends, real estate laws, job market, security, neighborhood amenities, and the general economy.
Related: How to Identify the Best Places to Invest in Real Estate
After finding a good investment location, the next step is to find a profitable investment property. However, analyzing multiple investment properties manually is a cumbersome and time-consuming process. Mashvisor’s real estate investment tools make your search for a good investment property easy. With our tools, you can easily and accurately analyze the performance of real estate markets and investment properties in the US in terms of real estate metrics like rental income, cash flow, cap rate, cash on cash return, and Airbnb occupancy rate.
The Bottom Line
It’s truly exciting to get started in real estate. However, becoming a real estate entrepreneur can also seem difficult and even frightening due to the many challenges and pitfalls. It’s a tough road that a majority of the people choose not to travel. However, it can be an excellent way to build wealth and create financing freedom. You just need to know the actions to take and the tools to use. Use this guide to break through your fears and self-doubt and take your first step to becoming a real estate entrepreneur in 2020.
