Three things every new real estate investor should do before taking the plunge
Considering investing in property? Here are three things every new real estate investor should do before taking the plunge.
Real estate can be a great investment opportunity; after all, people always need houses, right?
The hard part is buying at the right price to actually make a profit, as well as learning how to be savvy about the ever-changing market so that your investments pay off.
A lot of people assume that real estate is a reasonably ‘safe’ investment opportunity, but like any other investment, it’s essential that you fully prepare before taking the plunge.
1) Do your research
The best way to learn about the real estate market is by learning from the mistakes of people who have been there before you. It’s a much better option than making lots of costly mistakes yourself!
There are some wonderful books that you can read on starting a real estate business, including:
- The Book On Investing In Real Estate by Brandon Turner. This book is designed to help you to get into real estate, even if you have little to no money to invest.
- The Millionaire Real Estate Investor by Gary Keller. In this book, the author interviews over one hundred people who have made millions investing in real estate, and so it’s stuffed full of helpful insights.
- One Rental At A Time by Michael Zuber. This one is perfect if you would like to build a real estate portfolio.
It’s also worth looking up successful realtors on social media and seeing what they have to say. Most successful people love to share their wisdom, and some might not even be adverse to you reaching out and asking for some advice.
Also, check out platforms where investors congregate. For example, CrowdDD enables investors to rate and review companies involved in real estate deals and lets interested participants access these sponsor ratings and feedback. If you are researching real estate crowdfunding platforms, you can start by reading firsthand investor accounts.
2) Develop a marketing strategy
As with any business, if you’re going to succeed in real estate, whether that’s flipping houses, building a rental portfolio, or even becoming a real estate agent, you will need a marketing strategy.
Before you get started, work out what it is that you’re bringing to the market that makes you so different from everyone else. Why should people buy from you? What do you have to offer?
Once you know what it is that you’re selling, you can begin planning your marketing strategy.
3) Make contacts
If you’re going to make money in real estate, you will need the help of a variety of different professionals. It’s worth doing your research and having a list of your trusted providers on hand before you get started so that you don’t get caught short.
Be sure that you find a notary so that your time-sensitive deals don’t get held up by unnecessary red tape.
You should also be sure that you have a trusted handyman who you can call on in case of unexpected maintenance issues. It’s a good idea to have a plumber you can call on, too, as plumbing problems can soon escalate if they aren’t dealt with quickly.
An important aspect of selling a house is the curbside appeal, which is how it looks from the road before anyone even enters the building. For this reason, it’s worth getting to know the local landscapers so that you can easily spruce up the front garden of the property you are working on.
Photo by Avi Waxman