Though real estate investing is one of the most stable and profitable investments, getting started can be challenging.
Real estate investments have a higher entry price than other investment classes, such as stocks and bonds. And, there is a great deal to learn about real estate and real estate investing, before buying your first property.
So if you are interested in getting started as a real estate investor, here are six important tips.
#1 You Don’t Need to Be an Expert
Although there is a lot to learn about real estate investing, you don’t need to be an expert to get started with your first property. As a matter of fact, you can’t be an expert real estate investor without first having some investing experience.
To get started with your first investment property you need a good working knowledge of investing in real estate, and a team of industry experts to help you find, purchase, rehab, and flip or lease the property.
#2 Keep Learning and Researching
You will learn a great deal with your first several deals, in part because of the knowledge you’ll acquire working with the experts on your team. But besides experience, overall research and study of real estate investing will help a great deal.
Additionally, research regarding your specific areas of investing, both geographically and types of investment properties, is a process that should never stop. Real estate trends are regional, even down to the neighborhood, so research in respect to local and regional trends will continue for as long as you invest in real estate.
#3 Real Estate Investing Doesn’t Have to Be Expensive
If you are contemplating investing in real estate, and you don’t want to purchase individual properties to get started, there are some alternatives.
Investing in a REIT can be a low-cost method of getting your feet wet with real estate investing. You can start investing for as little as $500 in some cases, and learn about real estate from the REIT.
Investing through a real estate investment group (REIG) or investment partnership is another method of investing in real estate, though often more expensive than the minimum investment for a REIT. These investment vehicles allow investors to individually own (or co-own) real estate investment property for as little as $5,000.
Real estate crowdfunding has evolved to become another vehicle for investing in real estate, allowing investors to invest in a real estate project for as little as a few hundred dollars in some cases.
Lastly, when you are ready to invest in individual properties, use a highly experienced real estate wholesaler to find and buy your investment properties. A good wholesaler can save you money on the purchase, and connect you with a network of experts to quickly get the property on the market.
#4 Start Networking
Most likely, there are real estate investors in your area who know a great deal about the local market, who will be happy to share their knowledge with you.
Realtors, wholesalers, contractors, and designers are always networking. They are often glad to network with new investors, which gives them a chance to show off their work and share their past experiences.
A great way to find and network with these individuals is through local real estate organizations, local meetup groups, and online real estate groups.
#5 Be Meticulous About the Details
As with every business, profitability is most often tied to meticulously following through with every detail.
As a real estate investor, then, your ability to generate profits often depends on your ability to stay organized, meet deadlines, and ensure that every detail is carried through to the end by yourself and your team.
Therefore, the sooner you approach real estate investing in this fashion, the sooner you can start generating profits. Even if you are just beginning to toy with the idea of investing in real estate, organization and attention to detail is key.
#6 Don’t Quit Your Day Job
A high percentage of real estate investors who own numerous investment properties continue to work their day job. Professionals like lawyers, doctors, accountants, small business men and women, etc. own real estate as part of their investment portfolio.
So, don’t think that investing in real estate means you should quit your day job. Quite the opposite, consider your day job as an income stream that will allow you to build your real estate investment portfolio more quickly, so that one day you can retire and live from the income generated by your investment properties.
Graystone Investment Group
Graystone Investment Group is a real estate wholesaler. We have researched the Tampa Bay area neighborhood-by-neighborhood to determine where investments are likely to have the most most return on capital.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.