You don’t have to teach classes on real estate investment at your local university, be a total smarty-pants, or get an MBA to become well versed and effective in this potentially lucrative business. All real estate investment takes is research, legwork, and some initial capital. Of course, that last part is a prerequisite, as you do have to have money to invest but, once you do, we say, “Go for it.” Once you get the hang of it and get the taste of returns, we can all but ensure that it will be addictive, too. Read on for five reasons breaking into real estate investment is easy—yes, easy!
#1 Start Small
You don’t have to go for Trump Tower your first time investing in real estate. You can start small until you get the hang of what will give you the best returns and until you’re comfortable making decisions that will affect your bottom line. A one-bedroom place is a great place to start, as there is always a need for these. Once you do this, however, make sure to increase the size of your investments, and don’t wait too long to do that either. As Entrepreneur.com Contributor Steven Kaufman puts it, “It’s perfectly fine to begin investing in smaller, low-end properties—but that’s not how you build an empire. As soon as you have the hang of investing, don’t hesitate when it comes to acquiring larger properties.” He goes on to note that larger property investments appreciate faster and are help to dramatically improve your portfolio.
#2 Ease the Transition By Going From Personal Residence to Residential
Perhaps you know you’re going to move in a matter of years from one city to another. That doesn’t mean you should rent a property. Instead, use this time to buy a property and get acquainted with it. Once you turn it into a rental property those years you lived in it will help you to be all the more effective in handling repairs, etc. on the property. This will go a long way with your tenants and, in turn, will keep good tenants renting the property. As this article on YoungAdultsMoney.com notes, you’ll get better interest rates on the property if it’s your primary residence at the time of purchase. It’s a win-win!
#3 Learn from Real Estate Moguls
Don’t know any moguls? Simply learn from others who know more than you! Join a real estate investment club in your area and reach out to those you know who have experience in making these kinds of investments. People are busier than ever these days but very few of these experts would turn down a free lunch in return for them sharing some sage advice in their field of interest. Take a class, get the business basics down, subscribe to blogs on the subject, and simply immerse yourself in anything that will increase your real estate investment knowledge.
#4 Plan For the Future
Having a long-term plan will help you to be better at real estate investment, as the bottom line is the longer you own a property, the bigger your dividends will be. So make sure when you are considering investing in a certain property that it makes sense for you in the long haul. Do you love it? It always helps to have passion for the property you’re buying! Will it require a lot of money in repairs? Weigh the risk vs. the reward and, if the latter is great than the former, then it’s likely a good decision for your future. Also, be sure that you have a backup plan when it comes to your finances, as you never want any of your investments to have the potential to bankrupt you.
#5 Ensure an Out for Your Investment
Don’t simply buy a property and forget it. Make sure to analyze the returns you’re getting and, if they property or properties are not increasing your wealth, considering selling. Frontier Properties is a real estate investment company that will buy your property on the spot with no commissions, hidden fees, or inspections. This is always an alternative if you’re having trouble selling on your own.
Breaking into real estate investment is easy. What are you waiting for?
Also published on Medium.