If you’re getting geared up to explore the potential of real estate investment, here are the tools you’ll need to succeed.
People get started in real estate investing (REI) for a variety of reasons. Some come to investing from some other area of the real estate profession, like agents who learn about the potential of investment in their local market. Some come to REI as an alternative to traditional investment options like stocks and index funds. Still others are inspired to explore investing because of the many house-flipping shows they see online and on television.
Whatever your reasons for getting into real estate investing, we’re here to offer you a roadmap. After all, with so many expert investors out there, there’s no reason for you to reinvent the wheel. What follows are some of the main things you need to consider as you launch your first project.
Whether you’re interested in a one-time investment opportunity or you want to make real estate investing a full-time career, you’ll need to lay the groundwork for your first project. While it will take some work and you’ll experience a learning curve, getting started is really as simple as ABC.
Choosing your real estate market, then becoming an expert in it, is probably the first and most important decision you’ll make. Here are some questions to ask yourself as you think through your options.
Once you’ve identified the market you’re interested in, you can begin researching the area to find out which neighborhoods and property types offer maximum return on your investment. If it’s not a local market, you may want to spend some time there getting a boots-on-the-ground perspective to build your expertise.
There are so many ways to get into REI. The choice of your investment strategy can depend on a variety of factors, including your experience level, your budget, your chosen market and even your personality. Some real estate investors focus on one particular investment strategy while others are guided by the properties themselves and pursue a variety of approaches.
Here are some of the most popular REI strategies:
Identifying your market will go a long way toward helping you narrow down your strategy, since different markets may lend themselves to different game plans and profit potential.
Once you’ve determined your market and your investment approach, you’ll want to build a professional team. This may include any of the following:
Remember, you don’t have to go it alone as a new investor. There are a variety of professional colleagues you can connect with who will offer you the expertise and practical experience you need as you are starting out.