Beginner Investors What Are the Most Important Aspects of Real Estate Education? by Nadia Abulatif December 18, 2017February 10, 2019 by Nadia Abulatif December 18, 2017February 10, 2019 Real estate education is the first thing you must consider before entering the world of real estate. Whether you are considering becoming a real estate investor or even a real estate agent, it all requires education. So, what are the most important aspects of real estate education? In this blog, we are going to talk first about the main aspects of real estate education. Then we are going to answer the question: Where do you obtain real estate education? Related: Become an Expert Investor: Learn How to Buy the Best Real Estate Investment Property. First: Aspects of real estate education Here are the most important aspects of real estate education every investor needs to master: Real estate metrics: The real estate business is full of simple math formulas that help investors and others understand where they stand in their business. They are called real estate metrics, and they are especially related to financing and return on investment. These metrics help real estate investors do real estate market analysis in addition to investment property analysis. Here are some of the most important metrics used in real estate that you must know: Net operating income (NOI): This is the rental income generated by the investment property excluding all expenses and loan payments. Cash flow: This is the profit you get from the property after deducting expenses. Note that the cash flow is calculated before tax income. Sure enough, it is simple math, all you have to do to calculate the cash flow is deduct the expenses from the total income. Cash on cash return (CoC): This is another real estate metric that is used to calculate the return on investment. In other words, it calculates the return on every dollar you have invested in a property. Capitalization rate: Also referred to as cap rate, this is a metric used to evaluate whether the property is worth investing in or not. It can also be used to determine the selling price of a rental property. The cap rate is calculated by dividing the NOI by the price of the property at the time of purchase. Real estate property financing: Another very important aspect of real estate education is financing. Sure enough, this is one of the most important aspects that you should educate yourself on before getting into real estate investing. You must know what kind of financing is available for you to finance your real estate business. There are a few financing programs you should know about, such as regular loans, owner-occupied loans, owner financing, and others. Another thing you should consider is the down payment. Most lenders require a certain percentage of a down payment, usually 20%, but there are also lenders who require less. Of course, it is up to you to determine what you are capable of financially. Related: The Investment Property Financing Tips That Every Real Estate Investor Needs. Real estate investment strategies: This is another area in real estate education, especially, if you are considering real estate investing. You must learn what investment strategies there are in the real estate investing business. This is important in order for you to decide on which investment property compliments your investment objectives. Here are some investment strategies that you must know about: Long-term investment strategies: Such as traditional rentals, BRRRR, and buy and hold real estate. Short-term investment strategies: Such as fix and flips, real estate development, Airbnb rentals, and wholesaling real estate. Marketing: Good marketing equals success in real estate. You can’t imagine selling or renting an investment property, whether you are an investor or an agent, without marketing. Of course, you need to let people know what kind of deals you have on hand. Therefore, you must learn what marketing tools are available for you. Here are some marketing methods you can use to put yourself out in the real estate market: Brochures: This is one of the most traditional ways of marketing. Make them appealing, and, of course, you should include “bait information” to attract the clients. A website: Creating your own website is also a great way to market your business. It will provide clients with an easy access to your business and, therefore, attract the right kind of clients. Social media: Social media websites have made marketing much easier for everybody nowadays. Use Facebook and take advantage of the features it has to offer. Create your own social media page and put it out there. Social media provides a huge platform for users, and, therefore, it can reach far beyond what other marketing tools can reach. Related: 6 Tips to Help You With Marketing Your Property for Rent. The legal aspect: The legal area is very important in real estate education. Keep in mind that each state has its own real estate regulations. So, it would be a good idea for you to keep up to date with these regulations. Of course, if you are planning on taking your business to a nation-wide level, then you have to keep up to date with other states’ regulations as well. Second: Where to obtain real estate education There are so many sources from which you can obtain a real estate education. Here’s what we recommend for you: Books: There are plenty of books out there about real estate. These books are written by real estate experts for people like you who are looking for real estate education. Therefore, you must consider taking that knowledge directly from the experts. Online: The internet is a great source for real estate education. It is available to everyone, and you get access to information by a click of a mouse. There are plenty of websites that provide blogs about certain topics on real estate. Mashvisor, Investopedia, and BiggerPockets are examples of real estate websites that you can use in order to obtain a real estate education. Real estate courses: Real estate education courses are everywhere. Look for real estate courses in your area and sign up for one of these. If it’s hard for you to attend a classroom course, then you should consider online real estate courses. Connections: By connections we mean hanging out with people who have business in real estate. You can hang out with real estate investors, real estate agents, and real estate experts. They are a live source of real estate education. You can learn directly from their experiences and watch them while they are doing their business. Finally: Get to action You must keep in mind that it’s hard to obtain full real estate education before actually getting into the business. There are things that you will learn only with personal experience. There is no excuse to not enter real estate investing for not having enough education. As long as you know the basics, you are on the safe side. Everything else you will learn by doing. Still, you must check out Mashvisor for sources on real estate. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL FinancingInvestor BooksLong-Term StrategyMarketingReal Estate EducationShort-Term Strategy 0 FacebookTwitterGoogle +PinterestLinkedin Nadia Abulatif Nadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. She is currently doing an LL.M. in Human Rights and International Law. Previous Post The Best Real Estate Investing Tips for Choosing a Top Location Next Post The Expert’s Guide to Traditional Rentals in the US Housing Market Related Posts Is It Cool to Invest in the Real Estate Industry as a Retiree? Millennials’ Guide to Buying an Investment Property in 7 Steps 8 Benefits of Owning a Rental Property How to Start a Vacation Rental Business: A Step by Step Guide Contingent vs Pending in Real Estate: What’s the Difference? Should I Use My Savings to Buy a Family Home or a Rental Property? What Types of Real Estate Investment Are Best for a Beginner? 7 Things Every Property Investor Should Know The Beginners’ Guide on How to Buy Investment Property Find the Best Investment Properties Using Heat Map Analysis Buyers Market vs Sellers Market in Real Estate: Everything That You Need to Know How Long Are Appraisals Good For? Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.