Are you wondering how to get started in real estate investing? Do you want to know the tips and tricks in real estate? Are you tired of hiding in the shadows and want to think like a professional real estate investor? Well, fear no more! You’ve come to the right place!
I’m going to provide you with a beginners’ guide and reveal the secrets to real estate investing.
Often at times real estate investing for beginners can be very intimidating. It’s easy for new real estate investors to get lost in the lights and sounds of blogs, books and TV shows about real estate investing. To help you jump through all the boring talk about real estate, I am going to give you a list of tips you can use to help you embark on your journey to find financial freedom through real estate. Of course, this isn’t going to teach you EVERYTHING you need to know but hopefully, it will lead you in the right direction.
1. Be committed
It is without a doubt that in real estate you MUST be committed and determined before anything else. Real estate investing is not something to do on a whim. Rather, it’s a lifelong pursuit to get in control of your financial situation for the future. As with everything in life, you will struggle, you will fail and you will make mistakes. Real estate investing is no different. The key for any new investor who is wondering how to get started in real estate investing is to take those experiences that beat you down and turn them into lessons to improve your skills. That is why the first step to success in real estate is determination and commitment.
2. Location baby!
When it comes to buying an investment property, the old adage holds true: “LOCATION IS EVERYTHING!” You should always consider the location and think about how it will affect your future returns and whether or not it will generate cash flow. The location of a property determines whether you will be able to successfully rent or sell it for a profit. When you find a property you are interested in, do some research on it and check out nearby listings online. This will give you an accurate idea of the going rate in the area and help you make accurate calculations of your potential profits. Always ask yourself is there future commercial developments? Are there public amenities nearby? Is the crime rate low? Unemployment rate low? You want to meticulously analyze the area before making any crucial decisions.
3. Choose the type of property
Single family homes, duplexes, multi-family homes, townhouses, condos and so much more! In the real estate world, there is an array of properties to decide on. Therefore, before you even think about how to get started in real estate investing you need to understand the different types of properties and what each one requires from you. In the end, you want to search for the property that brings the highest return on investment.
4. Think about what strategy you will use
When you want to understand how to get started in real estate investing you have to know the different strategies used. There are two main investment strategies to choose from: long-term and short-term investment strategy.
- Long-term investment strategy: Following this investment strategy means property investors buy the investment properties and rent them out for long time periods. This is the traditional and most popular way of real estate investing.
- Short-term investment strategy: This investment strategy basically means that property investors rent out investment properties for a short time period. These are also called Airbnb rental properties.
5. Financing the investment
Ok, so you’ve searched for the location, checked out the property and decided on the investment strategy that best suits you. Now comes the important part which is financing the investment.
Financing investment properties causes huge anxiety for a beginner real estate investor. However, don’t let this frighten you from getting started in real estate investing. Once you know where to find financing for the first time, you’ll understand it’s not as hard as it seems. Moreover, property investors can even buy a rental property with little or no money at all! There are many options out there for financing investment properties. A real estate investor could buy a rental property all in cash, or apply for a mortgage loan, private money loans, hard money loans, and owner-occupied loans. Before getting started in real estate investing, understand what is required to obtain loans. How to get started in real estate investing can be tricky if you don’t fully know your current financial situation, your personal financial goals, and the maximum amount of loan for which you are eligible. So, start organizing yourself to determine where you stand.
Before I leave you to venture off through your journey in real estate, here are a few quick tips on how to get started in real estate investing.
Work with a real estate agent:
Real estate agents are professionals and can help you a lot and do most of the work, especially if you’re a new real estate investor.
Select good tenants:
Pick tenants who pay rent on time, keep the property in good condition and follow the leases policies.
Set appropriate rent:
Choose an amount that is reasonable yet puts money into 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.
Mashvisor offers a number of real estate investing tools for getting started in real estate investing, such as the investment property calculator, property finder, the Mashmeter, and the Heatmap. Also, Mashvisor’s Knowledge Center includes thousands of blogs that cover all aspects of real estate investing in the US housing market.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.