Getting started with real estate investing is something that does not necessarily require money; what it does require, however, is a desire to learn, perform constant research, and continue learning. Making good property investments is not like making a lucky guess on a stock trade that just happens to turn in your favor; developing a talent for real estate investing is something that you must be willing to develop.
With the above in mind, here are four considerations you should make as you enter the world of real estate investments:
Fundamental Reading
Just like stock investors are often told to start off by reading “A Random Walk Down Wall Street” by Burton Gordon Malkiel, beginner property investors should track down “The Unofficial Guide to Real Estate Investing“ by Spencer Strauss; this book is considered by many experts to be one of the best introductions to the complexities of the American real estate and mortgage markets.
Networking
Real estate investing clubs are ideal not only for individuals who are getting started in this field but also for those who do not have a lot of capital. Many of these clubs get together to discuss the feasibility of investment projects and to pool funds together for the purpose of increasing profit potential.
Working with Real Estate Agents
Too many prospective real estate investors give up too early because they attempted to enter the market on their own; on the other hand, those who partner off with a real estate professional like James Rowlett with Houston Home Team REMAX Northwest, Realtors or someone similar from the beginning are more likely to stay in business for longer. Investors will need more than just motivation if they want to thrive in this competitive market; they also need the support of professionals who can access certain information and tools that are not normally available to anyone.
Getting into REITs
The image of a real estate investor who scours the MLS for unseen bargains that can be renovated for rental income or flipping purposes is a little outdated. There is another class of property investors who check their stock portfolios instead of the MLS; these are individuals who put their money into real estate investment trusts, many of which are traded as equity securities on Wall Street. Getting to know the holdings and strategies of REITs by means of investing in them can turn into a profitable activity.
In the end, those who follow the right advice on their way to becoming property investors will find out that this could very well one of the best decisions of their lives.
