Tips For New Investors to Succeed In Real Estate
Starting any new project is never easy. Whether it’s learning to knit and crochet or teaching yourself to play the piano, it’s hard as adults to feel comfortable venturing into the unknown — and being bad at something.
That’s why starting a real estate investment career can seem like an insurmountable task for individuals. Even if the real estate market always seems like a smart, attractive investment opportunity, it can be intimidating for individuals with little to no experience.
There’s truly no better time to enter the world of real estate investment than now, so it’s time to trade “maybe next year” for a practical, committed approach to real estate investing.
As a real estate investment coach, Laura Alamery knows how difficult it is to make that first leap — and how rewarding it is to have a thriving real estate portfolio afterward.
Take these tips into account as you start your own real estate investment practice.
1. Network, Network, Network
This tip isn’t novel, but it’s still incredibly important. These days, networking looks a bit different than it did 50 years ago. It’s as much about a social media presence as it is about handing out business cards at meetings.
While nothing will replace in-person connection, having an online presence can keep you connected to more peripheral contacts. Reach out via email, LinkedIn, or any other professional social media platform with questions, ideas, or just to say hello. You never know when these connections will lead to your first successful real estate transaction.
2. Have Your Own Home
If you do not already own a home, it generally makes sense to start there. You’re more likely to get favorable financing options when you own (and live in) a residential property. When you’re ready to move on, you can buy another property to live in with the benefit of a lower down payment, better interest rates, and tax write-offs.
Then, you keep your first property as a rental and you’re already on your way to a successful real estate portfolio.
3. View Deals As Long-Term Investments
There’s a time and a place for fix-and-flip properties, but there’s also merit to viewing the real estate market with a long-term lens.
Fix-and-flip opportunities are great when you find the perfect property in the right market, but the trends show that millennials are renting for longer. You might flip a house and turn a profit, only to sell it to someone who will keep it as a cash cow for decades.
Instead of getting the property off your hands, consider how much money you could make over time by renting it out. Here, you’ll need to consider the costs of a property management company or landlord (if you live out of state or don’t want to manage daily operations), likelihood of occupancy, rental rates, and other rent-related factors.
4. Instinctively Understand A Deal
In its most simple form, successful real estate investing is knowing the difference between a great deal and a great risk. When you get more comfortable assessing market trends, understanding the profile of certain neighborhoods, and analyzing market trends, you’ll be more likely to spot great deals — quickly.
If you’re entirely new to real estate investing or if you just have cursory experience, working with a real estate investment coach is one of the best ways to develop these instincts.
5. Look Outside Of Your Neighborhood
If you’re buying a property in the hopes of renting it out, there’s something to be said about living close by. However, in this day and age, it’s much more reasonable to effectively manage a property or undertake real estate transactions in a global market.
Your local real estate market might be cold, but there’s always going to be a hot market that you can tap into. Don’t let local properties be your limit. Instead, assess your portfolio goals and see which nation-wide market is the best match.
6. Benefit From A Team
You don’t have to go it alone in the world of real estate. Form a partnership with individuals you really trust and who are competent. Always have a broker, investor, developer, and contractor on your side.These people can be the difference between an overwhelming transaction and a seamless deal.
7. Work With A Real Estate Investment Coach
It’s easy enough to read about these strategies, but it’s much harder to actually put them into action. When you work with a real estate investment coach, however, you learn how to apply fundamental real estate principles.
Laura Alamery is a real estate investment coach with years of experience. She offers personal real estate coaching and live events in cities near you. If you’re serious about launching a real estate career, Laura’s coaching can be your catalyst.
Register for coaching, an event, or a webinar today!