Real estate investing is a tried-and-true method of generating wealth in tangible assets that tend to appreciate over time.
Regardless of how you choose to get started in real estate investing, the number one thing you should keep in mind is that real estate isn’t a get-rich-quick scheme–it’s a long term game that anyone can play successfully with the right approach.
This article discusses our list of the top four real estate investing tips for beginner investors and how you can get started in real estate investing this year.
1. Educating yourself
Before you can see success in real estate investing, you must educate yourself on how to invest in real estate. Luckily, education isn’t only in the form of books and online lectures.
Most successful investors have had mentors that showed them the ropes of real estate early on in their careers. These accomplished investors most likely learned through on-the-job training and hands-on learning in addition to educating themselves on traditional real estate concepts.
2. Figuring out financing
Aspiring real estate investors will quickly find out that real estate investing is typically a pay-to-play game. You’ll most likely need upfront capital to purchase your first real estate investment, or you may need to partner with someone who has the money to invest.
Investors only have a few choices with traditional financing for investment properties. A conventional mortgage is the most common loan type for real estate investors, while military veterans and their families may be able to purchase an investment property with a VA loan as well.
Another financing option typically available to borrowers is a loan from the Federal Housing Administration (FHA). However, FHA loans are only available to borrowers financing their primary residence, which means they cannot be used for investment properties.
There are plenty of other methods investors use to finance investment properties outside of traditional financing. Check out this article to learn more about the financing options you should consider before buying your next real estate investment.
3. Knowing when to buy
The secret to being a competitive buyer in any real estate market is knowing when to buy. Regardless of market cycles, the housing market tends to heat up in the spring and summer months, presenting a big opportunity for sellers.
On the flip side, the winter months often cause the real estate market to slow down, which means buyers may be able to spot a good deal during this time.
4. Working with a knowledgeable real estate agent
Believe it or not, working with the right real estate agent can make or break your real estate investing business. Good real estate agents are often investors themselves and know how to negotiate the best terms for their buyers.
Finding a real estate agent in your area is crucial to your success as an investor, making it that much more important to choose the right real estate agent for your individual investing needs.
Getting your real estate investing career started
Are you looking to buy a property in the Richmond area? Find out why Pastore Properties of Richmond is the top choice for investors looking to get involved in real estate investing in the Richmond area.
Contact our team at (804) 234-4480 to learn how we can help you grow your real estate investing portfolio this year and beyond.