Becoming A Real Estate Investor On Your Own
So you’re ready to embark on your real estate career but you’re not sure where to start? We understand — we know how challenging the real estate business can be. We also know that as an independent entrepreneur, you probably want to figure out how you do it by yourself. So here are our 6 essential tips on becoming a real estate investor on your own.
Becoming a Real Estate Investor Tip #1: Understand Real Estate Investing
You can’t become a real estate investor without knowing and understanding the real estate investing process. You have to understand the business, the risks, and the sacrifices you have to make as an investor. We’re not going to lie, it’s a challenging industry at first, b But you’ll soon learn the ropes of the business. You just need drive, commitment, dedication, and building a solid foundation of information in real estate investing.
Becoming a Real Estate Investor Tip #2: Research the Market
If you’ve read a few of our blogs, you’ll notice that we always emphasize the importance of researching the market when it comes to real estate investing. This means that you should be well acquainted with your city/area’s local economic and real estate market trends, demand, mortgage rates, client habits, the most recent state law changes, among other trends and factors. Soon enough, you should be able to learn to identify and predict how these trends change, and that will definitely help you in becoming a real estate investor.
As for how you’re meant to gather all this information, there are numerous resources that you may use to help you with becoming a real estate investor. You’ve got books, the internet, mobile apps, and good old fashioned networking. Check out sites like Investopedia, Zillow, Trulia, and Realtor. Most importantly, and you’re half way there, check out Mashvisor’s multiple features to help you with becoming a real estate investor.
Becoming a Real Estate Investor Tip #3: Build a Network
This is another crucial step to becoming a real estate investor, and lucky for you, it’s pretty easy to do. Try to build relationships locally and online. Your network would include everyone from real estate investors, to real estate attorneys, contractors, accountants, potential clients, realtors, among others. So where do you begin? Go to open house events, get involved in your local real estate community, introduce yourself to other investors, and to potential clients. You’ll be surprised, but a large number of the people you meet will be eager to help you kick start your real estate investing career and in becoming a real estate investor.
Online — there are so many online platforms that you can use to build relationships, ask questions, and benefit from the experience of others. Take advantage of social media, after all, it’s where everybody is today! Make sure you set up and use an account on LinkedIn, Bigger Pockets, Facebook, and Twitter.
Becoming a Real Estate Investor Tip #4: Handle Real Estate Investment as a Business
Real estate is a business like any other, and you should treat it as such. This means that from the onset of your career, you need to make short and long term plans, as well as set short-term, medium, and long term goals for your business. Ask yourself “Where do I see myself in one, five and ten years?” What type of investment do you want to get into? Are you looking to turn this into a full time job? Will you eventually want to quit your day job and commit yourself fully to real estate? Will you be buying your first rental property or will you be renting out part of your own property first? Making plans will help you answer these questions, and envision what becoming a real estate investor means for you.
Treating real estate investment as a business also means that you must keep yourself organized, oriented, and structured. It means that you’re keeping track of your accounts, finances, latest trends, and future plans. This is why we stress the importance of visualizing where you’ll business will be in the long run, to help you establish your business portfolio and to focus on maintaining and achieving your career goals and objectives.
Becoming a Real Estate Investor Tip #5: Manage Your Finances and Make Money
Are you financially fit to become a real estate investor? Figure out what you are making now to learn how much you can invest in property, and what type of profits you will be able generate. Plus, once you’ve made your first investment, how much income will you be making? Will you be generating positive cash flows? Have you made the optimal investment with what you have? Mashvisor will help you figure out that and more, but more on that later!
One really important tip is that you should figure out where you are spending the most and try to cut back on these expenses. Learn to differentiate essential from dispensable expenses to save as much money as you can. After all, every buck counts in real estate investing. Moreover, you should learn how to keep track of your accounts and manage your financial statements. Consider consulting a friend, a fellow investor, or an accountant at first if you don’t have the expertise.
Becoming a Real Estate Investor Tip #6: Use Mashvisor!
What easier way is there? Mashvisor will definitely help you in becoming a real estate investor. Mashvisor can help you learn where all the good locations are. We provide information and data analysis on different investment indicators such as cap rate, CoC return, rental return, occupancy rates, and optimal investment options in different cities and neighborhoods.
The Knowledge Center contains a large number of blogs on different topics in real estate investing. If you are reading this blog, you have probably already made it! Once you have collected sufficient information, you can set up your investment portfolio and kick start your real investment career.
For a full tour on Mashvisor’s features and tools, watch our demo video here.
Originally published at www.mashvisor.com on December 7, 2016.