Richard Josephberg: Tips on Getting Started in Real Estate Investing
At some point in their lives, most people have to do a real estate transaction. Unlike stocks and bonds, often called “standard assets”, real estate is considered an “alternative asset,” historically difficult to access and afford, until recently. Nowadays real estate has become a common investment vehicle, and it continues to be popular. However, for those not well versed with its nuances or trends, it can also be quite risky. During Richard Josephberg’s career in the real estate sector, he has seen many people committing the same mistakes over and over again, without developing a sound investment practice. As the founder of Almorli Advisors, a real estate investment and operating company, Richard Josephberg is well acquainted with all of the meanders of real estate investment. Here he offers some of his tips on how to get started in real estate investment.
The simplest reason to invest in real estate is diversification. If you already own stocks or mutual funds, than you probably know how volatile they can be. Because volatility signifies risk, it is best to spread your money across many sectors and asset classes. To ensure a good return on your investment, Richard Josephberg explains, you need to surround yourself with knowledge regarding all aspects of real estate investing. Real estate investing is not as simple as buying a rental property and waiting for it to start making money. It takes time and effort to become a successful real estate investor.
The good news is that there is a real estate investing strategy for everyone. The clearer you are on your goals, the clearer you’ll be on the right real estate investing strategies for you. Mistakes are made by those who rush and don’t take enough time to study their field of interest. If you want to make it in this cut-throat business, make sure you’ve set aside a lot of time to properly research the sector, check neighborhoods and dive into research analyses that will point you in the right investing direction. Better safe than sorry is Richard Josephberg’s golden rule of investment.
Acting without a plan that brings your closer to achieving a central goal makes no sense. So, before getting started in real estate investing, you have to figure out which investment strategy to follow. The best strategy depends on your goals as a real estate investor, location, and the type of income property. Having a clear idea about your budget, the kinds of risks you’re willing to take and the length of time you’ll allow your money to be tied up is crucial to developing the right investment practice. After all, it’s one thing to invest, and another thing to gamble. If you buy a property hoping that one day it will bring you a great profit, you’re not investing, but gambling.
