America is the land of opportunity. Hundreds of thousands of people have become wealthy by investing in real estate. Perhaps you’ve been dreaming of flipping homes, buying a rental house, or commercial property. If so, you’re probably also a little nervous. There is a lot at stake, and even more to learn. These are some crucial tips on investing in real estate and becoming a landlord.
Learn as Much as You Can
Just as there is always a learning curve every time you get a new job, there will be a learning curve in becoming a first-time real estate investor. It’s imperative to learn as much as you can, as fast as you can, from knowledgeable professionals in the field. Start reading books on the topic, sign up for workshops, or attend a conference. Watch YouTube videos, documentaries, and anything else you can to learn the business.
Put Money Aside For a Down Payment
You are going to need down payment money for any investment. Yes, it may be possible to start without it if you agree to extremely high interest from an angel investor, but it’s a better idea to start saving and avoid high-interest rates. Remember, if it sounds too good to be true, it probably is. Come up with a strategy for how to start saving what you need. Set a budget and stick to it.
It’s wise to start slow, because like it or not you’re going to make some mistakes. Even seasoned veterans in the real estate investing business still make mistakes. If you start slow, you can take calculated risks, learn from your mistakes, and hopefully keep your losses to a minimum.
Find a Good Team
Every successful professional must have a good team of supportive people that are highly experienced in their field. You’ll need an attorney, CPA, real estate broker, mortgage broker, and mentor. Start seeking out these individuals and don’t settle for anything less than the best. They will provide invaluable advice, so follow it. Trust them, but ask good questions. Ultimately all decisions are yours, and so are the risks involved.
Be Prepared to Work Long and Hard
Having realistic expectations is vital. Real estate investing is a career and a business. You’ll reap precisely what you sew. Many people have the misconception that you won’t have to work very hard. The truth is, there are tons of details that will require your careful attention. You’ll have to do lots of research, make many calls, send lots of e-mails, look at properties, meet with your team, and much more. It’s not a passive way to make an income, at least not in the beginning. So be prepared to work long hard hours.
Real estate investing can be extremely rewarding and help you build your nest egg, but it’s not a get rich scheme. Be sure to you learn from the best, and use a little caution until you become more experienced. Soon you’ll get more confident and your business will become successful.
Note: Opinions expressed are solely my own and do not express the views of my employer