Imagine if you had a roadmap that helped you reach your real estate investing goals based on what you like, your interests, and your risk tolerance. A roadmap that saves you time and money by optimizing your investing experience to acquire your properties and make your money.
That's what you get with this article; a roadmap gleaned from the experiences of a real estate attorney and investor, Jason Marino, ESQ. This list of tips benefits those just starting who don't have much real estate investing experience. Anyone can grow their real estate business if they are willing to follow some fundamentals and learn the basics.
This beginner's guide will look at the top tips a real estate investor should know when investing in properties.
As you find deals and decide where to invest, you may not be acquiring properties where you live. Sometimes the best deals are properties in another part of the state or a different state altogether. You'll have to learn how to acquire and manage your real estate remotely.
As a real estate investor, time is your most valuable asset. To save time and money, you should build a team. At a minimum, your team must include the following types of people:
All professionals will bring something of value to a conversation, but a specialist will be better for you than a generalist. A generalist won't know how to address your pain points. Some professionals lack relevant experience and won't understand your specific needs as a real estate investor.
Find a team of professionals who have direct personal experience or business experience in real estate investing:
Market research is the difference between profitable properties and losing time and money. It also allows you to take emotion out of the equation.
You want details and data for your market research. Some research your team on the ground will provide. You can also do plenty of initial research on the internet:
Most people will succeed more by focusing on a single aspect of real estate investing. Diversifying too much can be detrimental and counterproductive because you will have to spend time managing various types of investments.
An aphorism highlights the importance of focusing: "A jack of all trades is the master of none." More pointedly, if you had to have brain surgery, would you rather have your general practitioner or a neurosurgeon with years of experience?
Pick a lane, pick a focus, and be intentional. Scattered focus is scattered resources.:
In this industry, you have to network and speak with someone who has experience in the same focus area that you're prioritizing:
Emotions are your enemy when you're investing in real estate. Remove emotion from the transactions, carefully calculate, and be intentional with your decisions.
It could make sense. Risk mitigation and higher returns are a possibility. Make sure you don't spread yourself too thin. You could end up putting too much time into managing different markets. External factors like deals and available time should guide your choice to diversify.
It's probably best to stay within a real estate investment type, you know, and diversify by geography. Find an entirely remote team you trust; this will be your biggest challenge.
Short-term properties started unregulated, but that's changing. It's becoming popular. More laws and more saturation are making mid-term and long-term rentals more attractive. Eventually, oversaturation of the market should force prices to drop.
As a real estate investor, you need to have a plan for your investments. As you grow, so will your strategy. But anyone can get started by learning the basics and adhering to these fundamentals:
Are you ready to start your real estate investing journey? Sign up for a FREE Royal Legal Solutions Group Mentoring session to learn more from our real estate investing experts.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
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