Have you been saving up money for quite some time and are finally ready to invest that money into real estate? Or, maybe you have made the decision to invest in real estate a while ago, but you need a strong strategy in place to enhance your success. Whether you’re new to real estate investing or you’ve been involved in it for years, it is critical that you have a strategy set in place.
The biggest mistake real estate investors make is jumping into an investment without a plan. Many people get into real estate investing because they know they can make money from it. What most people fail to understand is, without a plan, you are limiting your success. However, with a plan in place, you can significantly increase your profits and maximize your success with your investments.
We’ve put together a list of some of the best real estate investment strategies out there that you should incorporate into your own strategy. With these strategies, you can get started on the right track!
Research
Like anything else, you must have some knowledge about real estate investing. Otherwise, you jump into things blindfolded and it’s easy to take a wrong turn.
There are quite a few things you could do to enhance your knowledge of real estate investing. Here are some things to consider:
- Read forums
- Research Online
- Attend Networking Events
- Read Books
The very first step is spending some time to learn about the industry.
Determine Your Goals
Without goals and a big picture, you can get into real estate investments and end up spending a ton of money and time without getting far.
Ask yourself why you are getting into real estate investing in the first place. Are you looking to make money this month? This year? Do you want to build a portfolio and make it a full-time gig?
You will also want to determine if you are going to buy and hold property or if you are going to buy the property and flip it. Flipping properties has become popular and investors are making a ton of money by flipping. When you flip a house, you typically buy a low-cost home, renovate it, and sell it to make a profit. By determining your goals, you can build a better strategy that will help you achieve those goals.
Assess Costs
Once you have determined your goals, it’s important that you understand the costs. What costs do you need to know in order to set a profitable return on your investments? Here are some costs that you should get familiar with:
- Vacancy rates
- Repairs
- Maintenance
- Capital expenditures
- Property management expenses
- Accounting and administrative expenses
Having a thorough understanding of these costs is important so you avoid overpaying for properties. Those who are not familiar with costs commonly end up losing money when unexpected costs surface.
If you want to get familiar with costs, try reaching out to another investor who has been involved in real estate investing for a while, or consult with real estate agents.
Start Small
A big mistake that real estate investors commonly make is putting their entire savings on a down payment. The biggest problem with this is that there are so many unexpected costs. You can end up in a pickle if you don’t leave yourself plenty of wiggle room.
To avoid getting into a sticky situation, don’t be afraid to start small. Start with a small investment and see how it goes. Once you get a cash flow going and you get familiar with investments, you can expand your investments. Consider starting with a small studio condo or a small home that needs to be flipped and you will be off to a smooth start.
Find a Partner
Maybe you are ready to get into real estate investing, but you need some financial assistance. If that is the case, consider finding a business partner. Working with a partner is an excellent way to start with no money. In addition to money, business partners can bring you even more value with hard work.
Shop Wholesale
Another common mistake new investors make is paying the retail price for their first rental property. This is no good in terms of the return on investment. New investors should be building strong relationships with wholesalers. Wholesalers are real estate investors that buy houses at well below market value and sell them to other investors. It’s important to note that wholesale properties might have more risk and will be harder to finance, but it’s a deal that you won’t want to pass up.
Have a Strong Sales Strategy
Finding a good investment property can be tough, especially if you have certain criteria. This is why it is so important to have a strong sales strategy. Before jumping into real estate investing, consider how you are going to find properties. Are there any additional tools you can use to help you find the best properties?
For instance, many people use online search, but cold calling can be a great additional sales tactic. Cold calling builds strong relationships with the seller so you can find the best buyer so that the buying process runs smoothly.
Call Motivated Sellers: A Part of Your Investment Strategy
There are several mistakes real estate investors make. Don’t make those same mistakes! If you really want to be successful with your real estate investments, you must use the tools that are available to you.
Call Motivated Sellers is a great tool for both new investors and investors who have been in the industry for quite some time. At Call Motivated Sellers, we will do all the work to find you the right investment property. This way, we do all the upfront work to bring you leads, and then you just close the deal!
If you are ready to start your journey to success with real estate investing contact our team at Call Motivated Sellers to get started!