Did You Know that 90% of millionaires have one thing in common? This investment is what helped countless entrepreneurs into millionaire status.
Real Estate Investing. Many millionaires owe their success to this strategy.
No wonder house flipping has spiked in the last few years!
But Real estate investing is easier said than done. With the right tools, you can start real estate investing and be one step closing to your million.
Step 1: Know Where To Invest
Realtors love to say this: “It’s all about the location.” But there’s a reason why everyone repeats this.
“Finding the right locations is key to being a successful real estate Investor. In order to maximize the return on interest of a property it has to be sellable, and if the area is bad, it’s hard to hit the ROI.” – Loren Howard, Phoenix Hard Money Lender, Prime Plus Mortgages.
How can you find the right areas to invest in?
Thankfully, sites Like Zillow and Trulia make it easy to find the right areas. Your ideal investing locations will have the following:
* Low Crime
* Good Schools
* Room For Growth
* Easy Access To Amenities
* Nearby Business Parks
If your heart is set on a property that doesn’t have some of the following, that’s okay. Areas with strong development promise can be very smart investments, so make sure to keep an eye on the commercial real estate projections.
2: Know What Kind Of Investment
Know what kind of investment strategy works best for you before you begin looking at properties will save you a major headache.
The 2 most common types of real estate investing are:
1. House Flipping
Similar to the shows, house flipping means that you buy undervalued properties, make crucial repairs, and ‘flipping’ them for a profit. For first-time investors house flipping can be tricky, as it requires a lot of capital to not only purchase the property, and fund the repairs. Thankfully Fix and Flip Loans make funding first-time investments easy.
Some First-time investors find that renting is easy for a first-time real estate investment as it guarantees a monthly passive income to fuel your other investments. Home Rehab loans are especially helpful for first-time investors. Home Rehab Loans make upgrading your properties easy and making it easier to rent your property
3: Pick Your Investing Team
It takes a village. One of the most important real estate tools you can have is a great team behind you. Here are the top 4 team members you need to have to be a successful real estate investor:
Each of these team members makes real estate investing easy, from building, financing, listing and keeping the books clean. Finding these valuable team members can be tricky, but a well oiled investing machine brings you one step closer to successful real estate investing.
4: Fund Your Investments
Many first time investors don’t know where to go for funding. For most real estate investors finding funds for their first-time investment can be nearly impossible, especially with high credit scores requirements, proof of income, and other strings attached,
For house flippers looking to fund their first real estate investments, hard money loans say yes, in a sea of no’s. Hard money lenders use properties After Repair Value (ARV) to determine the loan amount. That means with a Hard Money Loan you can get funded for the property, and repairs, and still, make a profit.
Without having to wait for funds, you can purchase more properties and start investing today!
Real Estate Investing can be tricky, but it doesn’t have to be. By having the following knowledge and tools you can start investing smarter today.
* Step 1: Know Where To Invest. Pick the right locations in your city that you know will have high market demand, like those with the best schools, or plans for business parks.
* Step 2: Know What Kind Of Investment. Know the ins and outs of your preferred type of real estate investment and learn what other real estate investors are doing to be more successful.
* Step 3: Pick Your Investing Team. Make your real estate investing A-team that can help you find, upgrade, list and fund your investments.
* Step 4: Fund Your Investments. Have funding to put down on great properties before someone else picks up a great property. Hard money loans are fast, don’t require credit checks, and are more flexible than a traditional mortgage.
What’s the best real estate investing advice you have received?
If you’re in South Florida and need assistance with your real estate investment, contact The Law Office of Ryan S. Shipp, PLLC @ 561.699.0399 today to see how we can assist. Our West Palm Beach Real Estate Attorneys help Buyers and Sellers with the purchases and sales of both commercial and residential properties in South Florida. Our in-house sister company, Clear2Close Title & Escrow, LLC helps close real estate transactions and assists with hard money lending.
Thank you to Catherine Way our guest blogger for this blog post!
Catherine Way has never been able to stop talking. She took her love of talking and graduated from Michigan State University with her Bachelor’s of Advertising with a specialization in Graphic Design. She spends her free time finding new ways to talk to people, through writing, designing, dancing, and more. You can see her newest creations here.Google+