Real Estate is a highly lucrative investment, but it requires a significant amount of time on hand, patience, and, most importantly, cash!
There are options for investors to get into the real estate, yes. But, the significant returns are only found in the big investments. For instance, when you buy and manage a multi-unit, multiple-storied building or fix up a single-family home and sell it for a notable profit.
Today we are bringing you a few tips to get you started with your investment plan in Real Estate.
Before we begin, here are a few key points about Real Estate Investment to break the ice:
Key Points About Real Estate Investment
- You should not consider investing in real estate until you have an emergency fund. You must also have no debt, and it is preferred that you are saving automatically in a retirement account.
- Investing in real estate takes time, patience, and cash!
- If you don’t have excess cash to buy a property, you can invest in a real estate investment trust (REIT). If you opt for this way, you will get paid in the form of dividends, and you will get exposure to the real estate market.
- If you have got enough cash to buy a multi-unit property, start living in one unit and rent out the rest of your property. It will help you get started in the business, and you will be renting out to someone in front of your own eyes.
How to Invest in Real Estate? – Follow These Steps If You Want to Make Money!
The first step would be to get your finances in order
Before you get into any type of real estate investment, you must get the rest of your financial belongings in order. You must be able to establish an emergency fund, pay off your debts, and then automate all your savings.
Relatively, real estate happens to be a particularly expensive investment, so you must have cash on hand for an immediate down payment. Or if you are planning to reserve a dip into it whenever something needs fixing, you need to have a fund separately that should exist apart from your everyday emergency fund.
You could try investing in a Real Estate Investment Trust
If you are interested in investing in real estate and you don’t have a large amount of money at hand, you could get a similar exposure from investing in a REIT. It would allow you to invest in real estate but with a relatively shorter time and cost commitment.
Equity REITs are the most common types of REIT, and it allows the investors to pool their money that eventually funds the more significant purchase. A REIT always focuses on a specific kind of real estate such as complexes, apartments, hotels, malls, or hospitals, etc. The investment is usually returned to the investors as a form of rental income.
If you are game for parting ways with your money for the potential to earn even greater returns, you could also consider investing in an online broker like Fundrise.
Get familiar with the local housing market
If you are only interested in buying your personal property, you should start getting to know your local market. Subcategorize that local market and stay in your neighborhood. Talk to the local real estate agents and locals to find out who lives in the area, who is moving in the area. Talk the rates out, analyze the money scenario. In other words, research and analyze your neighborhood real estate scene.
Develop a local team
If you want to go about your real estate investment plans breezily, the best you could do is make connections with the locals. Build a team of contractors, investors, real estate agents, etc. and stay on good terms with them.
If you want to get into real estate investing, you need to focus on building relationships with people – whether they are for business or local PR.
Buying a Single-family home and renting it out
One of the very creative ways to get your real estate investment going and start yielding instant benefits is if you can buy a single home, make it better, and rent it out. Keep in mind that renting it out will generate income only if there are reduced overhead costs.
Ideally, you will be able to have a monthly mortgage payment. The rent prices will eventually rise, and it will increase the amount of pocket money you will receive overtime.
Buy a Multi-Storied house and rent a portion
Another similar way of investing in the real estate business is if you have a handful of money with you, you could build/buy a large house, live in one portion, and rent out the other one. This would allow you to have exposure to the real estate business, and you will learn to manage. An advantage of renting out a portion in the same building you live in is that you will have your tenant in front of your eyes – ultimately, an advantage for you to avoid any frauds or thefts.
Who Is Call Motivated Sellers And How Can we Boost Your Real Estate Business?
As a brand new real estate professional, you dream of working with homeowners and homebuyers. We realize that you dream about the open houses, showing homes, and making all your dreams come true. Most of the real estate professionals who do not make it out there, do not bring cold calling into the equation since many of them hate the aspect of this entire process.
However, at Call Motivated Sellers, we will hook your business up with the most enthusiastic individuals out there who are specially trained to generate leads for your business, whether you are buying or planning on selling, we will have your back.
At Call Motivated Sellers, we will start a partnership with you where you describe your ideal customer to us, their price range, whether you will be buying or selling or more, and our motivated callers will start dialing the numbers at once.
After you begin your association with us, your biggest challenge will be to keep up the qualified contacts our callers will seek out for you to work with. And before you know it, you may even need more agents to keep up with the leads that your cold calling professionals will generate for you!