Beginner Investors Real Estate Investing for Beginners: 10 Tips for 2020 by Elias Rizek October 27, 2019October 17, 2019 by Elias Rizek October 27, 2019October 17, 2019 You’ve heard the buzz time and time again: investing in real estate is a fantastic way to build wealth and reach financial independence. Thankfully, real estate investing for beginners has never been easier, considering all of the powerful tools and valuable information that’s out there. If you’ve been itching to start investing, 2020 can be your year; so it’s time for your real estate 101. Use these 10 tips to learn how to start investing in real estate for beginners. Figure out why you want to invest Investing in real estate is a fantastic idea which can help you build wealth. But before you start, you should decide on why exactly you want to invest, to inform your upcoming decisions. For example, are you looking for a source of income to supplement your current job? In that case, an investment property type that allows for passive income would be the way to go. Are you planning to secure your long-term goals and develop a retirement fund? Then maybe a long-term buy and hold strategy would work best for you. Or are you looking to take on investment as a full-time job to make maximum returns? In any and all cases, knowing why you want to invest will help inform your course of action. Learn the basics Real estate investing doesn’t need a specialized degree or a license; just a drive for investment and smart decision-making. Online resources are the new real estate investing 101 for beginners, as you can learn pretty much everything you need to know. Get yourself familiarized with the industry, its terminology, and what other investors have to say about real estate investing for beginners. Know the tools available to you We all have smartphones and laptops, so it’s easier than ever to get anything done. Before you go into your first investment, make sure you know the tools that are available to you which can make your life significantly easier. Need help calculating your potential investment’s cash flow? The Rental Property Calculator will help you with that. Can’t decide which neighborhood to invest in? The Heatmap Analysis Tool will help you with that. A handful of premium services can go a long way to taking the stress off of real estate investing. Related: 3 Tools to Find Cash Flow Properties for Sale Keep a close eye on housing market trends The real estate market can be volatile at times. Markets vary significantly from month to month, and from city to city (or even by neighborhood). For example, did you know that currently, single-family homes are the best type of rental property in the Dallas real estate market? In the Nashville real estate market, townhouses are actually the best right now. Be sure that you’re constantly in the loop to know where the best investment lies. To do this, you can keep up with some of the industry’s best investment sites for beginners, for top-notch and up-to-date advice. These websites will be a great source of real estate tips for beginners. Don’t take on more than you can handle As a first-time investor, you’re certainly amped up and excited to get going. But you shouldn’t exactly opt for a major apartment complex on your first go. Consider looking into more manageable property types, such as single-family homes. This initial investment can help you learn the ins-and-outs of the industry before you make more major investments. Know your expenses very well One of the most discouraging things that can happen to you is a financial setback — especially if it could have been predicted beforehand. So what’s the key to avoiding this situation? Study up on exactly what costs you can expect, and make sure you’re on top of it. Having a clear idea of your cash flow and your anticipated income can go a long way to financial security and the success of your real estate investment. Related: A Comprehensive List of Rental Property Expenses for Investors Look into Airbnb as an investment strategy Airbnb isn’t just for renting out your extra bedroom; many real estate investors have discovered the massive potential of Airbnb as an investment strategy — and this trend sees no signs of slowing down in 2020. For some rental properties, Airbnb can bring in significantly higher revenue than renting out traditionally. You can use tools offered by Mashvisor in order to figure out whether an income property will make more money as a traditional rental or as an Airbnb rental. If you manage to find a good property, this can be one of the best real estate investing strategies for beginners. Find a Profitable Airbnb Investment Property Consider investing in REITs Real estate investment trusts are one of the simplest means of real estate investing for beginners. These trusts operate much like publicly traded companies, wherein investors can purchase shares and expect dividends from the profits of the company. This can be a great way to get started in real estate since your investment doesn’t need a huge amount of capital. Your investment can be as low as $200, meaning anyone can get into it. Related: How to Invest in Real Estate on a Budget and Still Make Money Don’t quit your job — yet There’s a lot of income to be made from real estate investing if you do it right. But quite often, it may take some time for your investment to turn a profit. The initial phase of purchasing a rental property, for example, involves higher expenses than usual. You’ll need to deal with closing costs, home inspection costs, maintenance costs, and others. Therefore, it may be a good idea to hold off on quitting your day job until your investment property takes off and can make enough profit to sustain you. Think long-term 2020 is bound to be filled with surges in a number of housing markets, and time will tell who manages to capitalize on them. While you might be inclined to go for the hottest markets, it may be a wiser choice to opt for the more stable ones. Although there are certainly profits to be made in both, a stable market can be rewarding for many years to come. Real estate investing is most profitable when you have a long-term strategy and a solid plan. This is one of the most crucial investing tips for beginners since impatience can break an investment. Bottom Line Learning how to invest in real estate can be one of the most useful decisions you ever make. Just be sure that you’re well-equipped with the right knowledge and the right tools, and you should be on your way to making great investments. Real estate investing for beginners has never been easier, and 2020 can be your year. Start Your Investment Property Search! START FREE TRIAL AirbnbCostsReal Estate EducationReal Estate TipsREITs 0 FacebookTwitterGoogle +PinterestLinkedin Elias Rizek Elias Rizek is a writer with several years of experience in diverse subject matter. He is specifically interested in the advent of the sharing economy, and how new technologies are impacting real estate. He's committed to providing high quality advice to navigating the new digital dimensions of real estate. Previous Post 3 Quick Tips for Becoming a Rental Property Landlord Next Post How to Calculate ROI in Real Estate Related Posts Basic Advice for a Beginner Real Estate Investor The Secrets of Effective Real Estate Networking How Do You Find the Hot Real Estate Agents in Your Area? What Does 7.5% Cap Rate Mean in Real Estate? 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