Beginner Investors How to Start a Career in Real Estate Investing by Charles Mburugu April 14, 2020February 27, 2022 by Charles Mburugu April 14, 2020February 27, 2022 Real estate is one of the most lucrative industries in the world. Wondering how to start a career in real estate? Here are some career opportunities to consider: Real estate managing broker Commercial real estate agent Residential real estate agent Residential appraiser Commercial appraiser Property manager Leasing consultant Commercial leasing manager Foreclosure specialist Real estate attorney Corporate real estate manager Real estate developer Becoming an investor, however, can be the most profitable real estate career path. Real estate investing comes with a wide range of benefits: Tax advantages – Taxes are a major expense for businesses all over the world. One of the best ways of lowering taxes is by investing in real estate. Warehouses, commercial buildings, apartments, single family homes, and multi family homes all come with their own tax incentives. Cash flow – Investing in rental property provides investors with a steady passive income, especially if the investment property is located in a strategic location. Hedge against inflation –Investing in income property is one of the best ways to hedge against inflation. Unlike other kinds of assets, real estate moves in the same direction as inflation. As prices of goods and services increase, so too do home values and rents. Leverage funds – When buying real estate, you can use leverage. For example, you can buy a $300,000 investment property with $60,000 without even using your own money. On the other hand, purchasing assets like stocks and bonds require 100% of the investment upfront. Real estate appreciation – One of the main benefits of investing in real estate is the appreciation of assets over time. Your property’s value will be worth much more 20 years from now. Equity – Real estate investors build equity as they pay off their mortgage. They can then leverage the equity to purchase more rental units and increase their cash flow. How to Start Your Career in Real Estate Investing: 5 Steps With the right information and preparation, almost anyone can become a real estate investor. Here is how to start a career in real estate investing: 1. Get some education Residential real estate investing can be very complicated for the beginner real estate investor. Get started in real estate investing by acquiring sufficient knowledge of how the real estate market works. You will need to get familiar with terms such as real estate investment business plan, financial modeling, data analysis, the real estate syndication process, cap rate, cash on cash return, and occupancy rate. The good news is that there are numerous free and paid courses that you can take online and in a physical class. You could also watch YouTube videos, listen to podcasts, and read books on real estate. 2. Choose a real estate investing strategy Your real estate investment strategy should fit your goals, needs, personality, skills, and budget. Here are some of the investment strategies to consider: Buying rental property – You can choose to go for Airbnb rental property or traditional, long-term rental property. The best thing about this strategy is that you can start generating income immediately – as soon as you purchase a house and find tenants. This can turn out to be a long-term, reliable source of income. However, becoming a landlord means that you will have to continually deal with repairs, complaints from tenants, and evictions so you may want to consider hiring a property manager. Real estate wholesaling – Wholesaling involves getting a property for sale under contract from the owner, promoting the house to prospective buyers, and then flipping the contract to a buyer. Fix and flip – With fix and flip, you buy a distressed property, renovate it, and then sell it at a higher price to the final homeowner. Buy and hold – The idea behind buy and hold is purchasing an investment property, and then selling it much later after its value has appreciated. REITs – Investing in real estate investment trusts (REITs) is the most passive real estate investment strategy. It is quite similar to investing in shares or stocks. Related: Top Six Real Estate Investment Strategies 3. Select a target real estate market Location is a very important element for the success of any real estate investor. This is why you should take a lot of time researching different real estate markets before making a decision. You can evaluate locations using criteria such as population growth, jobs and economics, price to rent ratio, walkability, safety and crime rates, public transportation, taxes, and local laws. Real estate investment tools such as Mashvisor’s Real Estate Heatmap can help you analyze different locations in the US housing market within minutes. This tool lets you analyze neighborhoods using metrics like listing price, traditional and Airbnb rental income, traditional and Airbnb cash on cash return, and Airbnb occupancy rate. Start out your 7-day free trial with Mashvisor now and get 20% off after. Get 20% Off Now Related: How to Choose a Real Estate Market to Invest In 4. Get investment property financing When it comes to financing your first real estate investment, there are numerous options to choose from. These include: Veterans Administration (VA) loan Federal Housing Administration (FHA) loans Portfolio loans Conforming loans Private lenders Hard money loans Seller financing Each one has its own pros, cons, and requirements. For example, the success of your conventional mortgage application will depend on your credit score. If you have a poor credit score, your application is likely to be rejected. Be sure to review all your options. Related: Getting a Loan for Rental Property: 3 Requirements 5. Have a real estate marketing strategy Once you’ve acquired some investment properties, you need to have an effective real estate marketing strategy in order to attract renters or buyers. The first step is to get your property listed on real estate sites such as MLS or Mashvisor if you plan on selling. For renting, look into some of the popular rental listing sites. You can then use yard signs, social media ads, newspaper or magazine ads, direct mail, and referral marketing to get the word out. Working with a local real estate agent can also be a very effective strategy for finding buyers or tenants. Conclusion With all the details involved, investing in real estate can appear very intimidating for beginners. However, anyone can learn how to start a career in real estate investing. The best way to get into real estate investing is by starting small. After doing your research, begin by purchasing one investment property. As you begin generating some income and building equity, you can invest in more homes. Within no time, you will grow your portfolio and boost your income significantly. Do you have questions about Mashvisor? Read our FAQs and learn about our tools or schedule a free demo with our team. Start Your Investment Property Search! START FREE TRIAL FinancingLocationMarketingReal Estate Education 0 FacebookTwitterGoogle +PinterestLinkedin Charles Mburugu Charles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices. 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