If you’re sitting on a bit of money, whether you’re a business or not, if there’s one thing we would always recommend investing in, it’s real estate. Real estate is the key to your future if you want your future to look bright.
People have been investing in real estate for so many years now, and there are a few good reasons why they’re doing that. It’s such a good way to build on the money you already have, and it’s actually so much fun to do it. Yes, it can be rather stressful, but when isn’t real estate?!
And yes, it doesn’t carry its own set of risks, but what investment option doesn’t these days? If you were to invest your money in this area, we know you’ll make a return, no matter how far along the line it is. All you need to do is launch yourself into real estate, and see how much you would be able to make from it.
If you’ve never done it before, here are a few ways that you can launch yourself into real estate investment, and be successful at it!
#1 First Manage Your Funds
The first and most crucial step in any investment option is your funds. Your starting fund is so important to your success, and you can’t just pull it out of thin air. The best way of organically getting your first funding towards your investment is through the business you already have, or through a lot of luck.
For any of the average Joes’ out there who just have an office job (which is perfectly fine), investing in real estate is going to be hard. However, those who have a business fund, and have a business to actually fall back on, are so much more likely to relax into the process.
If you don’t have a business, people usually go down this route due to money from an inheritance, or even just taking out a big loan to get themselves started. If you are considering going for a loan, we would highly recommend that you wait a little while before you commit to something like this.
Although we have to admit that real estate is one of the most secure ways of investing, you never know what’s around the corner. Some people get themselves into such serious debt by taking out a huge loan to try and invest, it doesn’t work out, and there’s no way of paying the money back but to fork out a massive amount each month. It’s not a life you want to lead and is not a life that many of you would be able to lead.
A lot of people then end up having to go bankrupt, which is really something you don’t want to be dealing with. However, it can go the complete opposite way, and your loan can pay off, and the money will come rolling your way!
#2 Create A Strategy
If you know you’ve got the funds to do this, then the next step of the process is definitely creating a strategy that’s going to take you from strength to strength in the real estate investment world.
This involves knowing how much you’re going to invest, what type of property you’re going to invest in, and how you plan on making a return from it. So, knowing how much you’re going to invest revolves largely around understanding your budget.
You don’t want to over-invest and leave yourself with nothing to fall back on if the house needs improvements. But you also don’t want to under-invest and buy a cheaper property, when you could be making so much more money!
As for what to invest in, it’s all about the area you’re going to go for, and how other properties of a similar sort are performing. For example, if you see a condo for sale, you view it, and it’s the property made of dreams, don’t assume that it’s going to make you money.
You need to do your research to make sure that the properties of a similar sort are selling well, which we will talk about more in the next section. But, as a rule, invest in what you like the look of, and always know how you’re going to make your money back.
You need to be clear as to whether it’s going to be a property flip quick investment, a buy and sell a quick investment, or whether you’re going to do a more long-term investment and rent it back out!
#3 Gather Information
So, we spoke about the information that you’re going to need to find, and it’s actually so important to this whole process. The first bit of info you need to source is how the real estate marketing is doing at the minute in the area that you want to invest in.
In some countries, you can just get so much more for your money compared to others. No matter what investment choice you go for, you’re still going to be able to make a profit.
In some, the economic climate means the pricing of houses is constantly up and down, therefore you could either make a lot of money or hardly any! The best thing to do is talk to local realtors at the time of your purchase, and see what the current situation is.
You can also do extensive research on the internet, and should be able to find all of the information you need about your chosen area.
One critical piece of information that you don’t want to miss is customer review or rating in the case of real estate crowdfunding sites.
After all, you want to know and learn from people who actually use or have experience using such platforms.
Websites such as CrowdDD exist to make it easier for investors to share, rate, and gather information on crowdfunding platforms.
#4 Your First Buy
This is the most worrying part for a lot of people. The first buy is the riskiest. You’re still a novice, you’ve never done this in investment terms before, and the stress that could potentially come your way could impact your life massively.
If you’re approaching your first buy, or feel you would be worried about it, then just take the whole process slowly. Don’t rush into anything without first having followed the steps we’ve mentioned before this section.
Your first buy needs to be calculated, it needs to be done right, and it needs to be done with as little expenses as possible. If you ever feel like it’s going wrong at any point, always ask for advice from people you know who have done something like this before.
There should be plenty of forums on the internet as well, that should hold the answer to some of your questions. If you’ve already put the money forward, there is no turning back. All you need to do is play the field, take any setbacks in your stride, and make sure that you have enough money to fall back on if anything did ever go wrong.
#5 Making It Long Term
Most people don’t just invest in this area once and call it a day. Most people go for it long term, and it does take a lot of skill to be able to do this.
If you want to make it long term, your first buy does play a big part in it. If your first buy goes well, and you make a lot of profit from it, then you’re ready to move forward. Even if you only make a little bit of profit, you should still go for the same again, and use the same tactics that you did before.
Eventually, you could get to the point where a venture like this turns into a little business, a and whatever you were doing previously to this investment idea, can be focused put to one side. If you do go for it long term, and you do make money from it every time, then you could see yourself earning an absolute fortune.
However, you won’t get anywhere if you don’t put in the time and effort, or if you just throw yourself into it without doing any research.
Are you looking to start your own real estate investment?