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how to become a real estate investor

5 Steps to Get into Real Estate Investing and Become a Successful Real Estate Investor

Real estate investing is a smart way to build wealth. However, it’s critical to understand how to
break into the business in order to find success and avoid risks. One way to learn how to
become a real estate investor is to work with a trusted and proven real estate investing coach
like Laura Alamery. A guiding hand to show you the way is a huge bonus.

Educate yourself on the foundations of real estate investing before you purchase your first
property. Start by understanding the different types of real estate investments. Determine the
type of investments you want to make depending on your financial resources and how you
want to make money.

Types of Real Estate Investments

The basic types of real estate investments are residential and commercial. Residential real
estate includes single-family and multifamily homes. These properties, like with commercial,
can be purchased to flip and resale or to lease for monthly income potential. Rental properties
can include single-family homes, apartments, vacation rentals or other short-term rentals.

Commercial real estate can be costlier and more complicated than investing in single-family
homes. However, with the proper education and guidance, you don’t have to be intimidated.
Commercial real estate includes offices, retail, hotels, medical centers and any other property
that is used for commercial purposes.

Understand Investment Risks

Before you start investing in real estate, understand the risks involved. Understanding the
potential risks will help you to avoid major mistakes. The goal of real estate investment is to
make a profit. In order to make a profit, you need to cover the property payment, monthly
operating costs, taxes, insurance and any other expenses that arise. Not being able to cover
these costs will mean that you lose money and could result in bankruptcy.

Other risks include vacancies, legal issues, over leveraging, renovation problems and changes in
market trends. Be prepared to deal with the risks correctly by keeping an eye on all aspects of
your real estate investing business.

First Steps on How to Become a Real Estate Investor

Create a Business Plan

Don’t skip this step! If you are willing to do the work to invest in real estate, take the time to
create a business plan. This is your tool to define your goals, budget, marketing plan, financials
and other key parts of your business.

Most funding sources require a business plan before they will lend you money for your
investment. Be prepared! Plus, developing a business plan will help you view your investments
as a business, which is key to success.

Locate Funding Sources

For most real estate investors, funding is necessary to purchase property. Locating funding
sources is an important step for how to become a real estate investor. Two primary types of
financing are bank loans and private investors.

Finding private investors requires more work than a bank loan when you are starting out. You
can network or join a real estate investing group to tap into the real estate investing market
and identify funding opportunities.

Work with a Quality Real Estate Investing Coach

One solid way to start out successfully in real estate investing is by partnering with a quality real
estate investing coach. Two benefits of working with a mentor or coach are to help you set
realistic goals and to set you up to avoid unnecessary risks. Also, through classes and personal
coaching, you have the opportunity to ask questions and gain knowledge you wouldn’t get on
you own. Laura Alamery offers a variety of coaching and training options to get you started in
real estate investing.

5 Steps to Success

1 – Understand the Market

If you want to start any type of business, you need to understand the market you’re entering.
Consider the make-up of the area. What are the demographics? What’s the economic
conditions? What types of real estate are in demand?

2 – Focus on One Type of Investment

While real estate investing offers many different types of opportunities in both residential and
commercial real estate, choose one as your focus. By not spreading yourself across market
types, you’ll learn and grow more quickly. You can also become specialized in a specific
segment. Once you’ve figured out what works, you can then consider broadening your
portfolio.

3 – Develop a Network

Relationships are key in real estate investing. It’s important to play nice and be professional
when you deal with other’s in the field. You want a trusted network to support your investing
efforts from inspectors to attorneys to private lenders.

4 – Continue Your Education

Don’t take one course and think you know it all. Real estate is a shifting market, and you need
to stay current on laws, market trends and technology. Work with a real estate investing coach
that can guide you throughout your education and growth.

5 – Hire the Right People

Just like having a solid network is important, so is hiring the right people. You need a team on
your side to help you protect your investments. Find a quality real estate attorney and
accountant. Also, as you grow your business hire an administrative assistant to keep you
organized and on schedule.