If you’re hearing chatter about possible real estate investing opportunities coming in the near future and want to take part in the action, here are some tips from members of the Forbes Real Estate Council to help you get started.
1. Buy A Multi-Family Home And Move In
Start with a multi-family home and use one of the units as your primary residence to reduce overhead costs and avoid being overleveraged.
2. Consider Multiple Scenarios
It takes time to create a positive impact on the market remember the big picture and consider various scenarios for each potential deal. However, be careful to avoid overthinking calculations.
3. Know What You’re Looking For
Set your parameters carefully and be prepared to walk away if a property does not fit those parameters. You cannot let your emotions make decisions when it comes to real estate investing.
4. Get Your Real Estate License
This is a commonly debated topic, however, some feel that getting your real estate license can open up many doors for you.
5. Think Long Term
Always keep in mind that real estate is a long-term asset and therefore a long-term investment.
6. Keep Training And Learning
Real estate is always changing so it’s important to continue learning so you don’t make big mistakes that could ruin your business.
7. Partner With An Experienced Investor
If you’re brand new to investing, offer to spend some time assisting an experienced investor, which will give you an opportunity to learn while on the job.
8. Invest In Your Own Home
The first investment you should make is in your own home, which will be more time, effort, energy, and diligence than you would do on an investment property. In the meantime, you’ll be learning about neighborhoods, home inspections, the closing process, etc.
9. Outsmart Major Repair Issues
Major repairs, such as foundation issues can actually create a good investing opportunity if you think outside the box.
10. Start Small And Look At Every Deal
Start small, take an extremely hands-on approach, and get a few good deals under your belt before moving on to bigger deals.
11. Build A Focused Expertise
Start by focusing on a certain market or investing strategy and get to know its dynamics.
12. Do Your Due Diligence
Invest wisely and don’t get pulled into every “good” deal out there. There will be many as a result of the current environment, but take your time and choose the right deals.
13. Find A Mentor
Educate yourself and find a mentor who has experience and can guide you away from some of the most damaging mistakes a new investor can make.
14. Develop An Action Plan
One way to get started on your real estate investment journey is to create an action plan that includes your intended outcome and specific steps necessary to achieve your results.
15. Consider Time Versus Money
If you have more time than money, then start with fixer-upper deals that you can handle on your own.
16. Immerse Yourself In The Real Estate World
“Invest in a single-family rental and property manage it yourself. It’s how I started. Join a local real estate investment association and learn. Learn from those who are actively investing, not just those who talk about investing. On the remodeling side, learn from your suppliers and subs. Go to real estate conferences and immerse yourself. Those who put that knowledge to work, win.”