Becoming a real estate investor comes with risks, but many reap the rewards that come with investing in this ever-growing market. People will always need a place to live, which means that real estate will consistently have value.
About 44 million families across the United States rent their homes. That’s roughly 35% of American households. This is good news if you’re looking into residential investments.
Diving into real estate investments is not a get-rich-quick scheme. It takes research, investment of your time, and diligence, especially when you get started. The best way to approach it is as a business, and not as a hobby.
There are several impressive reasons for becoming a real estate investor. Learn more about what to do by checking out our guide.
Becoming a Real Estate Investor
Investments can yield different results based on factors including location. Look into areas with well-established or up-and-coming neighborhoods. For commercial real estate, find areas with high foot traffic.
Consider looking at locations like Jacksonville, FL. This area features 22 miles of pristine beaches and various attractions.
Decide if you want a short-term investment like flipping houses or a long-term investment like residential or commercial real estate.
How much time do you have to put into your property? Being a landlord can eat up more time than you'd think. Hiring a property management company can help with marketing, leasing, and maintaining your property.
Do Your Research
You need to know the ins and outs of real estate, including common terminology and real estate math. Consider taking a few classes, as well as joining a local real estate investment group. Books, podcasts, videos, and blogs will also help prepare you for becoming an investor.
You'll also want to look into trends in your market. Look into housing forecasts, find out which neighborhoods are up and coming, and learn the latest laws and regulations for your area.
Build Your Network
Having a network of professionals to guide you is invaluable in this market. Talk to other investors to learn tips and tricks you might not find on the internet.
Here are a few people you might consider for your network:
- Fellow real estate investors
- Lending institutions
- Bird dogs (to help you scout out ideal properties)
- Investor-friendly contractors
- Local title company
- Real estate agent
- Real estate attorney
Come Up with a Strategy
Before you embark on real estate investment, you need to have a business plan that maps out your goals and strategy for a successful outcome.
What type of property will you choose? You might look into a multi-family apartment building, a commercial storefront or office, a short-term house flip, or a single-family rental.
Decide how much capital you're able to invest, as well as how much profit you expect from the property. You also need to decide if you'll be an active, or self-managing, landlord, or if you want to reap the benefits of passive income with a property management company.
Start Your Real Estate Journey
There are a lot of steps that come with becoming a real estate investor, even before you purchase your first property. But the rewards can make your diligence worth it in the long term.
Are you ready to start your investment journey? Contact us today to find out how we can help.