Investing in real estate is something that has become the trend for investors that have a low-risk appetite and are for the long term. This is because in the past few years investing in real estates such as house flipping, property or home rentals have become very profitable if done right. However, while a huge return of investment awaits those who are eager to learn and risk takers, there are still chances that investors could lose their capital if bad investment decisions are made, as well as the timing ain’t right.
This is the ultimate reason why beginners and seasoned real estate investors must go back to the basics of investing before making one of the huge financial decisions of a lifetime. That being said, if you start your journey towards earning money in real estate, you must go back to the fundamentals. AJ Agrawal wrote an article in HuffPost about the most basic tips for real estate investing.
5 Basic Tips for Investing in Real Estate
If you’re just beginning to invest in real estate, you’ll find that there’s a lot to learn. Real estate investing is more complicated than investing in stocks because of the financial, legal, and extensive due diligence requirements involved. That’s why it’s a good idea to give yourself a solid education before you purchase your first investment property.
However, before you get your advanced degree, it’s a good idea to familiarize yourself with the fundamentals. To that end, here are 5 basic tips for investing in real estate.
1. Location Matters
The old adage that “location matters” is most accurate when it comes to real estate investing. Before you fork over a down payment and put yourself in a significant amount of debt over a property, ensure that it’s in a good location.
Look for the worst house on the best street. That’s a principle you’ll come across quite a bit as you delve into further real estate investing advice.
You want to invest in the worst house on the best street because it gives you an opportunity to build equity. It’s a property in a great neighborhood (“the best street”) that needs some work (“the worst house”). You can invest some money to fix it up and sell it to someone else who wants a ready-to-move-in house in a fabulous location. Professional real estate investors call this “fixing and flipping.”
2. Look for Wholesale Properties
Investing in real estate is just like investing in the stock market in at least one way: you’re looking for the best deal. If you’re a savvy stock market investor, you probably won’t buy too many stocks at their high if you plan on holding them for a long time. Instead, you’ll follow the Warren Buffet principle of getting greedy when everyone else gets fearful. You’ll buy stocks that are beaten down and make a fortune when they turn around.
3. Understand the Tax Benefits
The people who run our government want private investors to provide housing for people. That’s because they know that if private investors don’t provide housing, then the government will be responsible for it. See full post here…
Having a better understanding of the basics of real estate investing first can bring you a very long way in the market. Knowing investing factors such as property location, tax benefits, etc. helps a lot in your financial decision to buy a property. If you’re just starting to invest in properties, then at the least you need some expert’s advice, and Roi’s List has given newbies some professional’s tips in starting real estate investing.
12 Expert Tips on How to Get Started in Real Estate Investing
Are you new to real estate investing?
Are you looking for advice on how to get started in real estate investing?
In this article, you will learn what you need to know about this business straight from real estate experts who have been in the business for years.
1. Educate Yourself
A number of real estate experts agree that it is important that you educate yourself. Some confessed that if there’s one thing they wished they knew earlier that it’s the importance of educating themselves about the business.
“The new investors should immerse themselves in real estate education to determine which strategy is the best fit for them, based on their current financial situation, time commitment and unique skill sets and interest,” says Joe Fairless, host of “Best Real Estate Investing Advice Ever Show”.
For newbies, Brady Hanna, President of Mill Creek Home Buyers, suggests that you learn from real estate podcasts, books and websites. If you find something interesting, feel free to reach out to that person…
2. Find a Mentor
There are a lot of sources to learn about real investment. You can buy books and listen to podcasts. However, learning it straight from someone with experience is more effective. So experts suggest that you find a mentor, especially, if you are a beginner.
“I wish someone would have told me to get a mentor,” says Cindy Browning of Mac Home Development. “Someone who has been in the business for years and has sustainable profits year after year. The best advice someone could have given me looking back would be to work for your mentor for free and learn what they are doing day in and day out instead of trying to figure it out yourself.”
3. Establish a Goal
Before investing in something, be clear about what you want from it. Different individuals invest in real estate for different reasons.
For instance, according to Eric Johnson, a content and video specialist at FeedbackWrench, who do PR for Scott and Drew Hoefler, twin brothers and real estate investors, there are people who purchase a property to subsidize their mortgage. Click here to read the rest of this post…
Experts in real estate investing most of the time recommend to find a mentor that will help you in your investing journey. If you can’t find a mentor right away, you may join a much more experienced partner to teach you, as well as dividing the work. You may also find a community of real estate investors to share ideas and knowledge that could help in your real estate investing journey.
If you don’t have any experience or knowledge about this type of investing, but is very eager to learn, check out this article written by Daniel Berman in Forbes the most essential tips for new real estate investors.
Investing 101: 10 Essential Tips For New Real Estate Investors
Starting out in a challenging behemoth of an industry like real estate may seem daunting at first. With so many factors and risks involved, the simple act of contemplating where to begin can be overwhelming. After all, it’s one of the largest and most regulated sectors of the U.S. economy, accounting for approximately $30 trillion. As with most things in life, however, once you get over the initial hurdle of getting started, opportunities begin to present themselves and everything becomes clearer with time.
What I’ve learned over my career may help you in your real estate investment journey and hopefully provide the impetus new investors need to take the first exciting step.
1. Find your vehicle.
It’s all about making that initial, defining decision on what you want to invest in. In order to find the vehicle, you need to do your fair share of research. Find out what problem currently exists in the market or what service is lacking.
2. Educate yourself.
It sounds like a cliché, but educating yourself is crucial. You need to learn absolutely everything you can about the investment vehicle you choose. You have to become an expert — no ifs, ands or buts about it.
I began to take classes, attend seminars and workshops and read any book I could get my hands on. People want to make sure you know what you’re talking about.
3. Hone in on the product.
Once you finally decide what to invest in, the next step is to determine the specifics. After taking a few real estate classes, I decided to begin with basic residential investment. Over the years, people have often asked me why I chose residential over commercial. The simple answer is that residential investments are smaller, and I wanted to start out small and gradually move upward. Learn more about this article here…
Learning the basics knowledge, ideas and skills about real estate investing are ironical, just the first step towards a successful journey in investing in properties. With practice, patience and continuous study, you’ll definitely become rich and profitable in no time.
If you want to raise capital to start your choice of investing, or just to sell your house fast because you badly need cash, Dependable Homebuyers can help you sell your house as soon as possible, finding the right buyers for your beloved property. To learn more, visit https://www.dependablehomebuyers.com for more information.