Let’s face it – you want to invest in real estate but you have little-to-no clue about how or where to start. You have heard about the profits people get from it when the market is right.
You have heard about people earning long-term income just by note & deed investing and JV partnerships.
Now, you want to test the waters before diving in. Let us save you the trouble of drowning. We have swam across the waters and in this article, you will find some of the best tips for investing in real estate to help you stay afloat.
1. Know why you are investing.
Investing in real estate is not an impulsive action; it involves a long and well-thought-of days of decision-making and planning. Remember that you are putting your finances on the line and that is not something you want to take lightly. You have to have the clear understanding of why you are investing so as to stand your ground firmly once you’ve started.
2. Know your local investors.
Keep your friends close, your enemies closer, and your local real estate investors closest. That’s right, learn from those with experience. It’s one thing to read about investing online and it’s another to hear it directly from those who have already walked the road you are about to tread on. You might need to take notes while you’re at it.
3. Sacrifice to prioritize.
You heard that right. You must be willing to sacrifice some luxuries in order to prioritize your future financial freedom. Maybe from a vacation of once a month, you can cut it down to twice a year, from eating out at expensive restaurants every pay day, maybe you can save it strictly for special occasions and celebrations. The key is to look at what’s ahead of you.
4. Every great things started out small.
No one becomes Bill Gates in a day; not even Bill Gates himself. Having said that, there’s nothing wrong with starting out small. You don’t have to purchase an entire building right off the bat. For all you know, your house might be your first small investment, and eventually it will lead you to the best real estate investments in the near future.
5. Be open to possible resources.
There are moments when you know it’s the perfect time to make an investment but your financial situation says so otherwise. This is where real estate funding comes very handy. There are loans that suit your needs when it comes to investing. Take your chances and know that it will pay off in the end.
Here are some reasons why you should consider real estate funding:
- When you invest in a real estate funding, you’re putting your funds into secured mortgage, that is, loans which are secured by notes and deeds of trust.
- You can also have the choice of having a joint venture investment where you would have shared ownership, shared returns and risks, and shared governance.
- When you want higher returns, you also have the choice of becoming a higher risk investor.
6. Do bookkeeping as early as possible.
The moment you start investing, organizing your financial records will really help you in the long run. You can, perhaps, seek help from a lawyer and an accountant to help you keep track of your financial transactions, legal holding status, taxes, etc.
7. Recall your basic Math lessons.
Don’t worry, this doesn’t concern calculus or algebra; just plain and simple adding and subtracting. The thing here is that you need to be familiar of how to calculate your income, expenses, and cash flow. Although you need to have an accountant for that, it pays to be able to understand the math behind these matters.
8. Do your research. Read more about investing in real estate.
Never think that you have it all figured out. There are still more things you will need to discover when it comes to investing. The more you know, the better you are in handling your investments.
Want to invest with us? Call us at (925) 268 – 8012 for investment assessment.