We all agree that Internet has changed the world and one of the best developments is how it has leveled the playing field for everyday people who want to invest.
The first step to becoming a real estate investor is to get adequate knowledge of the real estate business: learn about the real estate market, the process of negotiation and all details involved in buying, fixing, and renting out properties (laws, taxes and average prices for the area).
It’s not a hobby, it requires a lot of research, having a plan, using the necessary tools and proper execution. Because real estate investments can be of high value, they can naturally come with risks. So, it is important to be strategic and not emotional about them. You need to dedicate sufficient time, energy, and money to be successful in the field. Mastering the business can lead to great profits and growth, not only financial but personal.
To start, select a niche and master it!
With many niches to choose from, it can be a little confusing to select one.
It would be much better to start with one niche (wholesaling, commercial, residential, or even flipping real estate) and learn from it, because It is impossible to specialize in everything at once. If you jump into many different types of investment properties you are likely to make more mistakes.
Have a strategy – Create a Business Plan!
You should treat real estate investing as a business and not a hobby. Set your investment goals and how you plan to achieve them.
For instance, when considering an investment, your plan should define the market you intend to buy in and why, your limits for acquisition costs, budgets for refurbishment, and your target sales prices, with a time period for each.
Becoming a real estate investor can be difficult, especially if you don’t have enough funds to start.
There are options available to you: mortgage loans, owner-occupied loans, hard money loans, and private money loans. You can also consider partnering with investors that are more experienced and have funding, but lack the time to execute a new property investment.
Real estate is a people’s business, so it is crucial to get out there and network with professionals and other real estate investors. Work to build a team that will assist you in your journey of investment.
Some of the most important contacts you will need may include real estate agents, attorneys, solicitors, architects, contractors, property managers, vendors, banks, and lenders.
What they offer should be in line with what you want. For instance, you should hire a real estate agent that specializes in working with real estate investors and not homeowners. You can find such contacts by asking for referrals from other successful real estate investors. You can also find them on online platforms, such as MARROM-STONE.
So, If you’ve been thinking about dipping your toes into the real estate market, there’s never been a better time than now.
See You Soon
July 25, 2019