Next to the stock market real estate investing can be one of the most lucrative investments you can make. If done correctly the investment itself won’t cost you any upfront money and can not only grow collateral over time but even provide a source of steady income.
There are several keys to becoming successful in real estate investing. Below we look at some of the most important key aspects.
Find a Mentor
The single most important thing you can do is to find a mentor. Someone that has done a considerable amount of real estate investing in his or her lifetime. Becoming a real estate investor isn’t just about finding a good deal. There are so many nuances and different situations that can arise. A great place to meet a mentor is at real estate seminars and local meet up groups.
Understand the Market
One of the first steps in real estate investing is understanding the market you are going into. There are different markets that often experience different situations and conditions. It is critical to understand all the fluctuations and avoid any downside that may occur.
Only Buy Good Deals
There is a saying in the real estate game, you make your profit when you purchase a home, not when you sell it. What this means is you want to make an offer on a property that is below what the value is worth. When you buy a home you want instant equity this way there is room for a down turn in the market or you could eventually leverage the property and grow your real estate holdings.
Find a Good Realtor
A good realtor is worth his or her weight in gold. Realtors can keep you abreast on newly listed properties as they become available. Plus, you will need some that has your best interest during the real estate transaction.
Ross Quade of New Listing Alert in Austin explains, “I work with several real estate investors, and when I see new properties that might fit their agenda, I will call them immediately to alert them. Sometimes this process happens, and an offer can be made before the home even hits the MLS.”
Read, read, and read more. In fact, not only should you be reading as many good real estate investing books as you can but you should join webinars, seminars, or go to conferences where you can continue to expand your knowledge of the industry.
If you want to be a serious real estate investor, then you need to network. The investors that network the most seem to find the best deals on properties. Don’t just think about networking with fellow investors, but you should network with contractors, plumbers, handyman, and just about anyone else you can think of. You could even consider working with wholesale real estate experts to get you on the right track to investment success.
Billy Henley of BHI Plumbing, Heating and Air in San Bernardino explains, “We often come across homes that are in disarray and to fix the plumbing is way out of the budget of the homeowner. In some cases, the homeowner is better off selling the house to an investor that can bring all the plumbing up to code.”
If you want to be successful, it takes more than just money to get going. You will need to educate yourself and network like crazy. Real estate investing is more about how much work you put into it so that way your money can grow.