Every property venture has its pros and cons and real estate investment is no exception. If you’re not socking away your money in your mattress and the stock market doesn’t appeal, you may be thinking about real estate.
- Why Invest in Real Estate
If you’re considering investing in real estate, you probably want to grow wealth, create cash flow and leverage existing equity or gain tax benefits. Financial freedom is the major motivation for many people looking at a real estate investment.
- Can Investors “Get Rich Quick?”
There’s a small but significant slice of people who think that investing in real estate is an easy way to “get rich quick.” Making a lot of money quickly does occasionally happen but it isn’t the norm.
Successful real estate investment takes preparation, perseverance and tenacity. Plan your path so that you craft a business that will grow steadily each year. There are no shortcuts to being a successful real estate investor. It takes hard work and application like any other business.
- Do Real Estate Investors Need a Guru?
Before the advent of the internet and late night television, most real estate investors became successful without the help of any guru. These self-styled experts aren’t all bad but usually they are trying to sell the dream of easy money. Often, the investments promoted by a “guru” are not investing at all, but simply gambling or speculating.
Many in the real estate industry benefit from promoting these individuals. There are websites focused on real estate investment that partner with them, making large referral fees. Often, real estate clubs will get takings from products and courses sold by “gurus” who “teach” there.
Through the internet, you can learn everything that you’d pay a guru for, and you can do so for free. But not all real estate “gurus” are bad, some are very knowledgeable people. If you want to learn more about any expert, do your homework and thoroughly research the person to find out what other investors are saying.
- Can I Invest in Real Estate if I Have a Full Time Job?
There are many ways to make money in real estate and holding on to the day job gives you some benefits over full-time investors. You won’t be looking to your fledgling cash flow for living expenses for one. And obtaining long-term financing should you need it becomes easier when there’s a stable nine-to-five to back you up.
By keeping your day job – at least in the beginning – You can develop your real estate business, hone your investment strategy, grow your knowledge base and create your own timeline. Make sure you have a concrete plan for growing your real estate business – you have a career, now build a future
- I Don’t Have Any Money, Can I Still Invest?
Real estate investment is always a “money” transaction. But it is possible, even if you don’t have any money of your own, to invest in real estate using methods such as wholesaling, home equity loans, getting partners, no-down payment loans, or lease options.
Bringing something to the party – skills, knowledge, creativity, time, etc. – is the key to investing using other people’s money (OPM). Intentionally investing in real estate without your own money is a significant skill-set with which you can develop a real estate investment business.
Get Started in Real Estate Before You Invest
One of the best ways to get a start in property is to work in the real estate sector. Choosing a career in the business earns you an income while you learn. If you lack experience or money, you can still begin moving forward with you real estate plans. Working as a real estate agent, a project manager, a mortgage broker, an escrow agent or a construction worker will give you a solid foundation with which to pursue you dreams of full time real estate investment.