The ultimate goal of every real estate investor is to make money with properties. However, it rarely takes just one property to become rich in real estate investing.
Making money in real estate is, instead, a process which takes time and persistence. After buying your first investment property, you have to keep growing your real estate investment portfolio to become a successful real estate investor and make money – lots of it. Thus, here we have prepared for you a list of the best real estate business growth strategies to set you on the way of becoming a wealthy real estate investor.
Best real estate business growth strategies #1: Start out small
Real estate investing is very much learning by doing. Thus, in order to be a successful – and rich – real estate investor, you have to start your real estate investing career with a small, cheap, simple rental property. Remember, it is all about growing your real estate business methodically and sustainably.
Best real estate business growth strategies #2: Focus on your real estate education
While becoming a real estate investor does not require any specific degree, it doesn’t mean that investing in real estate does not require knowledge and expertise. On the contrary, real estate education is a key factor for your success as the owner and manager of income properties. You have to be aware of all various types of properties and their peculiarities, of the recent trends in the local housing market, of the best places to buy an investment property, of how to screen potential tenants, of the landlord-tenant law, etc. While your experience in real estate investing will be your best teacher, you should also actively seek opportunities to learn more and more: sign up for real estate classes online or in a classroom, look for a real estate mentor, search for real estate partners, etc.
Best real estate business growth strategies #3: Keep buying an investment property all the time
After you have bought your first rental property and started making money from it, it is the time to start growing. Instead of spending the money from the rental income of your first investment property (unless you really have to), reinvest the money: use it to buy another rental property. The monthly rental income can be used to save up for a down payment on a new investment property and can afterwards contribute to paying the monthly mortgage payments on the new property. After you already have two investment properties which you are renting out, use the combined rental income to buy a third investment property. And so on and so forth. The more rental properties you own, the higher your rental income will be, and the easier it will become to buy an investment property on regular basis. Actually, many real estate experts recommend to buy an investment property to add to your real estate investment portfolio every 2-3 years. But once you become an experienced real estate investor, you don’t even have to wait for that long. You can buy a rental property every few months.
Best real estate business growth strategies #4: Sell an investment property when needed
The success to implementing the best real estate business growth strategies is to always remember that real estate investing is just a business. Income properties are just your tools for making money in real estate and becoming a rich real estate investor – nothing more. Unlike your home, you should never ever become emotionally attached to your investment properties. You should learn to know when it’s the time to sell an investment property and do it in the most profitable way. Then use the earned money to buy an investment property which will bring you more rental income than the one you have just sold. Remember to study carefully the 1031 Exchange to see how you can save from capital gain taxes.
Best real estate business growth strategies #5: Become an expert on real estate market analysis and investment property analysis
As we’ve already said, real estate investing is a business, and every business requires the proper use of analysis in order to grow and succeed as an investor. Real estate investments are no different. As a real estate investor, you should master the process of conducting real estate market analysis and investment property analysis in order to buy an investment property and sell an investment property at the right time for the right price. This will help you buy income properties in a buyer’s market and sell rental properties in a seller’s market to always make the maximum profit.
For your complete guides on how to perform real estate market analysis and investment property analysis, read: How To Perform A Real Estate Market Analysis and How To Do Investment Property Analysis.
Best real estate business growth strategies #6: Use the proper real estate investment tools
Tools have been there since the dawn of civilization to facilitate our daily work. As a real estate investor considering the best real estate business growth strategies, you have to get hold of the must-have real estate tools and use them all the time.
For a list and description of the must-have real estate investment tools, read: 8 Must-Have Real Estate Investment Tools.
There is one real estate investment tool which is worth mentioning here though, and this is the rental property calculator, also known as an investment property calculator. The rental property calculator is the best friend of any real estate investor as it saves tons of time and efforts when conducing real estate market analysis and investment property analysis. Moreover, with an investment property calculator, you have access to way more data and analytics than you could ever gather on your own as a real estate investor. This all means that the rental property calculator will allow you to make the best real estate investment decisions fast and efficiently by providing you with reliable and accurate estimates of various return on investment metrics such as rental income, cash flow, cap rate, cash on cash return, occupancy rate, etc. If you are looking for the best rental property calculator to access the top real estate business growth strategies, check out Mashvisor’s investment property calculator.
Best real estate business growth strategies #7: Diversify your real estate investment portfolio
If you want to grow your real estate investment business and to become a rich real estate investor, it is important to not only grow your real estate investment portfolio but to also diversify it. Don’t just buy an investment property every year or half a year. Buy different income properties in different real estate markets. In this way, you will make your income properties low risk investments and your real estate investment portfolio a diverse one. The endless opportunities are one of the beauties of real estate investments, so make sure to include a single family home, a multi family property, a townhouse, a duplex, a condo, an apartment, a vacation home, and more in your real estate investment portfolio. Moreover, have both traditional rentals and Airbnb rentals, as dictated by the demand and the laws and regulations in your local housing market. The rental property calculator will once again be your best friend by telling you which rental strategy is optimal in each real estate market. At least, Mashvisor’s rental property calculator does that!
Best real estate business growth strategies #8: Go for positive cash flow properties
If you want to make money and be able to expand your real estate business, you have to invest only in positive cash flow properties. In this way you will be able to be making money from your real estate properties. In the opposite case, if you have negative cash flow properties, you will actually be losing money from your real estate investments, and that’s what no real estate investor ever wants. So, regardless of what you might hear many real estate experts say – that it is OK to invest in real estate just for appreciation, don’t buy that! While real estate appreciation is a great way to make money in the long term, you should be making money rather than losing money in the short term as well, so always invest in positive cash flow properties.
For help in this regard, read: Real Estate Investing 101: How to Find Positive Cash Flow Properties in the US Housing Market.
Your goal in real estate investing should not be to just become a real estate investor. Your goal should be to keep growing and making more and more money from real estate investments. To help you out, especially if you are a beginner real estate investor, we provided you with the top real estate business growth strategies which work each and every time. After you have read through our list of real estate business growth strategies, you can start buying your first or next real estate investment property at Mashvisor, where you have access to the best and most profitable investment properties across the US housing market.
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