How to Become a Real Estate Investor and Succeed in Today’s Market
A real estate investor, like any other investor, wants the best ROI (Return On Investment) possible, which also provides long term stability and flexibility. This type of investment allows individuals, and groups, to put their money into something that can not only give them value, but also offer the benefits of entrepreneurship.
Investing in real estate is a traditional investment that provides actual, hands-on value- the difference between owning something one can physically touch, as opposed to purchasing something such as stocks or bonds. To a lesser extent, a real estate investor is someone who actively or passively invests in real estate. It involves the purchase, ownership, management, rental or sale of real estate for profit.
Entrepreneurs are attracted to the real estate market for not only the thrill, but for the profitability. Landlords, or entrepreneurs who offer their properties to third party tenants, may begin to see a cash flow by receiving money above and beyond their mortgage and property tax dues. Others may purchase properties, invest money into the beautification of them, and ‘flip’ them for a profit. Savvy investors spend a great deal of time researching what they want to do, incorporating their business and financial strengths for a quick turnaround.
There are three methods that potential entrepreneurs can take to get into the real estate industry. Aside from the basics- knowing where your money is coming from, and being or knowing a real estate professional who understands the market- there are key factors involved in real estate investing that can easily help anyone become a real estate investor.
How to Become a Real Estate Investor:
Know the Market
It all comes down to one simple word- education. It’s important to know what a real estate investor is getting involved in before diving head first into something they know nothing about. Studying for or obtaining a real estate license isn’t a bad idea- especially since it gives an investor the ‘inside view’ of what really happens in the industry. Coaching programs and courses designed specifically for real estate investors are also great resources for getting started. Real estate investors are well-versed in the markets they want to enter, and while some of what they may do is by trial and error, there’s a lot of research that goes into knowing all that one can before making any big decisions.
Choose a Path
What type of real estate investment is the ‘right’ type? There are many subsections of what real estate investors can offer in the market. The most popular of which being the ownership of property that is then leased out to tenants for profit. ‘Flipping’ homes, or renovating properties bought at a discounted or reasonable price, has also become popular in recent years. Once the home is fixed up, the investor turns around and sells it. There is also commercial real estate and other specifics that a real estate investor can consider; so it’s important to pick an initial focus and build a real estate investment business around that focus.
Whether it’s a cash purchase or finance, brokering a deal without personal financials, joining a publicly traded real estate company or firm, or simply being a portion of a partnership, there’s different risk involved with different real estate investments. It’s important to decide what is the right path to take- whether it’s involving a mortgage, using life savings, or signing on the dotted line to partner with an established broker. There’s also the importance of learning to invest in either equity or debt- which, broken down, means earning money on mortgage interest payments, or enduring responsibility for all property involved. As with any investment, there is always going to be risk, but before jumping in head first, it’s important to know what could potentially be around the corner.
There is no handbook for real estate investors- thus, learning how to be a real estate investor is more of a commitment than a study guide. By working with other professionals, either in partnerships or through coaching/mentoring, real estate investors have the ability to build their own book of business through education, investments, and intuition.
Taking the next step into a career in real estate investing requires commitment, fortitude, and positive energy. Education is always the initial jumping off point to any new endeavor, and I encourage future real estate investors to view my training webinars and decide if a coaching program with Laura Alamery is right for them. There’s no better time than now to learn about the industry and fulfill the desire to become a successful entrepreneur in real estate investing.