Getting started in real estate investing can be difficult for some people. It seems like something that can be very lucrative, but only if it is done correctly. Strategy is always going to be important, but how does a person get that knowledge in the first place?
There are always going to be tips out there provided by people in the industry. Since I, Jacques Poujade, have been involved in real estate over the years, here are a few things that work for me.
Research
When getting involved in any new project, research is always important. It’s simply impossible to just jump into something and automatically know everything.
Real estate is a pretty competitive business, so knowledge is going to provide an edge. Before even thinking about investing money, read up on information online, in books and more.
Take Classes
Research is beneficial, but some things can only be learned in classes. Take the time to find a few good classes to really learn the inner workings of real estate investing.
Set goals
It doesn’t really make much sense to start investing in real estate without specific goals. By setting goals, a plan can be put into place. Not only that, but it is easier to work to wards attainable goals.
Long term or flip?
Think about whether you want to invest for the long term or flip as soon as possible. This is going to really impact what type of investment properties to look for. Most people have a preference depending on their specific skill set.
Consider all costs
It’s always going to be important to understand all the costs involved in investing. There is definitely some upfront cost, but those can be made back depending on each situation.
When buying and holding real estate, money could be made back through rent. When flipping, it needs to be done quickly so that the profit is solid.
Don’t be afraid to start small
It’s tempting to be very eager to make a lot of money in real estate investing right away but starting small is a good strategy. Think of it as a snowball effect. By buying the first piece of property and making some money, that money can be used to buy a more expensive property. After a few flips, it becomes easier to buy bigger and more properties.
Consider Partnering Up
Some people will find it difficult to come up with the money needed for a down payment. Some will even ask for 20%. There are ways around having to deal with this. Perhaps the easiest way is to seek out a partner to help with the finances. This can make life easier, as long as you can personally bring something to the table to make it a worthwhile partnership for the other person.
Consider Hard Money Lenders
Another option is to go with hard money lenders. They are going to provide asset-based loan financing. It’s usually much easier to qualify, although interest rates will be a little bit higher. It’s a good trade-off for people who are eager to get started but don’t have the funds necessary.
Use Credit Cards
Yes, you can actually use credit cards to help with real estate investing. People of course need to be smart about it, but there are certain set ups that do work well. Look for low interest rates and flexibility for real estate investors.
Move Forward with Confidence
After doing research and preparing properly, it’s time to move forward with confidence. Don’t be afraid to take a few chances here and there to help progress your career.
To read more on topics like this, check out the money category
