How To Excel As A Real Estate Investor? -Beginner’s guide

Just like any new endeavour, there are questions you need to ask to fully understand and excel in that field and this includes Real estate investment. Real estate investment is a great tool to achieve financial freedom but navigating your way to success can be tricky without the necessary guidance. You need to know everything about what you plan to invest in. You need to know the right thing to do or steps to take to get a good return on your investment. Let’s start by answering the question:

What is a real estate investment?

Real estate investing is a profitable financial strategy that involves the management, ownership, sales, or leasing of landed properties. It majorly involves receiving cash flow through rental revenue and selling the asset for more money due to property appreciation. If you invest in real estate the right way, you can build wealth that will last for generations and beat the stock market by a wide margin.

How do Real Estate Investors make money?

There are four primary ways to profit from real estate investment and they are as follows:

1. Capital Profits

2. Rental income from your tenant

3. Additional investment earnings

4. And dividends from real estate investment trusts (REIT)

Real estate investment strategies

Another important thing to note as a beginner is the two major types of real estate investment strategies. These strategies rely on the same economic conditions to be profitable.

1. The first condition is that the value of the property must appreciate.

2. The second condition is that the expense of owning and maintaining the property cannot exceed the appreciation in value.

Types of investments to consider

After considering these major strategies, the next thing to consider is the types of real estate investment to consider. Wise investors make their decisions on the kind of return that most appeals to them. Purchasing property with the goal of selling it fast is known as quick turn investment or short-term investment. If you want to be a quick-turn investor, you don’t need to be knowledgeable about the local real estate market, property valuations, trends, and demand.

Long-term investing, on the other hand means buying real estate to rent out or lease for a long time, making money from both the rent and the property’s rising value.

Quick Turn Investment

As an investor who can make quick decisions, you must also be a sharp thinker. For quick turns, wholesale and retail are the two basic approaches you need to consider.

The wholesale quick-turn is somewhat similar to the broker’s deals. All you need to do is locate a fantastic property, sign a contract without making a deposit, and then find a buyer who is ready to offer you a higher price for the property. Then you connect the buyer to the initial seller to sell the deal with the added fees. That’s how you make a profit as a whole sale investor.

The retail quick turn requires you to locate a property that is priced substantially below market value, make the necessary improvements to prepare it for sale on the market, and then sell it to someone who needs the property. When you hear the term flipping houses this is what it means. Usually, these homes need to be improved in order to increase their appeal. To get your profit, you need to consider your final price by taking into account both the original selling price and the amount of work required to make it marketable.

The Long-Term Investment

Long-term investment depends on rental revenue and the steadily rising value of their properties over many years. Long-term investors don’t get a speedy return on property investment, despite being referred to as a safer and more profitable investment.

Though the revenue gotten from long-term investments comes in bit by bit, it’s a good thing the property covers its own mortgage and maintenance costs with the rent collected from tenants. The property effectively pays for itself, and if the investor increases the rent by a small amount, the structure will also produce a monthly cash flow. When the building is eventually sold, the investor could make a sizable profit.

Is real estate investing worth it?

Yes, it is. Real estate consistently outperforms other assets in terms of long-term value growth. Additionally, it is less susceptible to sudden changes than the stock market is. Whether you choose to purchase a home or rent an apartment to earn money, you obtain a real, functional asset. So it is worth every shot you give at it. To learn more about real estate investment and how you can succeed as a professional real estate investor, book an appointment with SV Investors here. You could also check out this amazing tips and secrets shared by successful investors on Pineapple podcast by clicking this link; https://www.youtube.com/watch?v=U1UgQUG1sjs .Don’t forget to subscribe to the podcast and newsletters as we hope to see you succeed as a Real Estate investor. See you next week