Many people think real estate is an easy way to make money because it doesn’t require much to obtain a license. In reality, though, it takes time and tremendous effort to fully understand the ins and outs of real estate.
This is particularly true for those who are new to the field and looking for a long-term investment.
It’s possible to build an investment portfolio that creates a steady passive income stream. But you can’t do it overnight, and you can’t do it without research.
Here are a few tips for a starting real estate investor to get you started.
Here’s what you should know as a starting real estate investor. These tips are simple, but crucial, to implement. If you take them seriously, they will ease your initial efforts and remain relevant and helpful down the road in your property management journey.
There’s no substitute for experience. But if you’re just starting out, you probably don’t have any.
It’s a good idea to seek out someone more experienced than you. Maybe you have a friend or a relative who has worked in the business.
There may also be real estate clubs in your area. These clubs can be a good way to learn, network and meet friends who can benefit you with their experience. Just be aware that many of these clubs exist to sell you a product or a course. Choose one that isn’t in it for the sales to gain valuable insight into the industry.
There are also scads of online forums you can join. Just hanging around one of those groups will help you gather knowledge. You can also network in these groups.
As you gather information, remember that there’s no shame in modeling your business on the successful ventures those who have already done it. Real estate has a blueprint that’s pretty effective if you follow it. As a starting real estate investor, there is no need to reinvent it, especially if you are not ready to take on substantial investment risk.
It’s smart to look for properties that offer bang for your buck. Smart long-term investors do not buy a property solely based on square footage and the number of bedrooms or baths. Understanding the value of the location of each property is much more significant than the property itself.
Houses and units can always be updated, but you can’t easily move a home to another location. A stunning property in the wrong place is less likely to be a sound investment than a just-okay property in an emerging neighborhood.
Are you planning to flip a house or become a landlord? Either way, as a starting real estate investor, it is crucial to pick one strategy and build a strong portfolio first.
It might be tempting to try to implement every strategy you come across, but this kind of scattered approach is a waste of energy. A better plan is to choose one strategy and then change it when it’s no longer serving you.
To start out, you can scout up-and-coming neighborhoods within your area and invest your money there. It might take a little while to see profits, but will be worth it once the perks start to kick in.
Investing in real estate is the ultimate in passive income, right?
Well, not quite.
You’re not going to be sitting at a desk 40 hours a week, but there’s still a lot of work involved. If you’re renting out your property, you will need to find renters, locate and build relationships with service professionals and contractors, perform routine maintenance, and communicate with your tenants.
You can always hire a property management company, but these companies will generally take at least 10 percent of your income.
If you’re not in the position to do that, you can make your life easier with a sound property management system.
Managing your property effectively requires a delicate balance of pragmatism and human relations, especially if you rent out units or homes to potential tenants.
But what if you could delegate all of the repetitive, automatable tasks to free yourself up to deal with the issues that require a human touch?
As a starting real estate investor, you want to focus on what matters most.
Most property management systems are geared toward larger property players and companies with extensive capital to invest in large upfront costs for vast portfolios.
But our property management platform solution is catered specifically to startup and DIY property management professionals.
You can check out the details here. Jervis Systems is changing the property management landscape with automation and access features.
We’re currently offering users the chance to beta test our features before they’re revealed to property managers everywhere. You can contact us here to gain early access and learn more about our official launch later this year.