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Real Estate Investing 101: What to Know Before Getting Started

Real Estate Investing 101: What to Know Before Getting Started

Are you interested in real estate investing? Do you want to learn more about becoming a successful real estate investor? Maybe you need help identifying the best transactional funding options near you.

We can help. While it’s impossible to cover the A to Z of real estate investing in this short blog, we’ve compiled a list of the basics to help you get started.

Step-By-Step Guide to Real Estate Investing

Real estate investing can be befuddling and strenuous, especially if you’re new to the game. While there’s no right or wrong way to build your real estate investment career, we outline the easiest path to get started. Use this guide to learn more about real estate investing and develop your career in this field:

  1. Start by identifying your personal and financial goals. Know why you wish to get into real estate investing. Is it because you want to build a successful and profitable career, or are you looking to make quick cash? Writing down your goals and mission helps you choose the best path to achieve them.
  2. Before diving in, know how much time you can allocate to investing in real estate. Is it a side gig you’re doing on top of your regular job, or will you be an investor full-time?
  3. Now that you have a clear picture of your goals and how much time you have to make them happen, you must start building your knowledge. Start by learning about real estate investing through online courses, webinars, books, or other resources. You can consider an internship or apprenticeship at a successful real estate investment firm to learn the ropes.
  4. Once you start developing your real estate knowledge, the next step is to decide whether you wish to be a passive or active investor. Passive investors take a hands-off approach, while active investing requires you to be more involved in the day-to-day transactions and client interactions.
  5. Depending on your investment style, you can choose an appropriate investing strategy. For example, passive real estate investors often opt for real estate investment trusts or invest in rental properties. Active investors get involved in double closing, fixing & flipping, or wholesaling.
  6. Start building your networks. Whether you plan to be a passive or active or full-time or part-time investor, you must grow your professional networks. Real estate is a networking game, and attending industry events, seminars, fairs, and conferences helps you expand your circle. Use these networking events to meet new mentors, clients, transactional lenders, and potential partners.
  7. The next and most crucial step is to assess your finances and raise capital. Some lenders provide funding based on your credit score and ability to make a down payment. That can be a hurdle, especially if you don’t have strong credit. Fortunately, the best transactional funding companies overlook your credit history, provided the property shows promise.
  8. Do your research to identify markets that interest you. Consider several factors like demographics, employment rates, school districts, rental rates, and infrastructure to identify and select your target market.
  9. Once you have decided on your investing strategy and target market, you can begin shortlisting properties that fit your budget and investment goals.
  10. Now, it’s time to make your first purchase.

After you make your first deal, it’s time for a celebration! Take a moment to congratulate yourself and appreciate your professional growth. It is also essential to assess the outcomes of your first deal. Do an honest evaluation of whether it has helped you move closer to your real estate goals and mission. Step back, identify what you could have done better, and rectify it in the next deal. Repeat the process till you achieve your goal of becoming a successful real estate investor!

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