The real estate business can be extraordinarily profitable if you know how to get started in it. However, given today’s level of competition, getting started can be easier said than done. Here are a few tips to help you get started.
Understand Your Market
Real estate is naturally a geographic-based business. You need to understand your local area and know what the market demands. Are there are a great number of families looking to buy their first home, or does your market consist primarily of students? What is the average home value? How often does a home remain on the market? The first step to getting started in real estate is answering each one of those questions.
Buy or Sell?
Landlords make money in two main ways: through renting property to others, or by buying and flipping properties. Most landlords that purchase property will put in the manual labor necessary to update and better the home, improving its value and selling it for far more than the purchase price. Those renting properties will receive a lower amount of money, but can count on a steady, reliable income stream month to month. This stream can be increased if a home is split into two separate properties, such as a duplex.
It does you no good at all to own a rental property if no one knows you have it. Make sure to find the right company to help you market a property and get it in front of prospective tenants. Companies with a proven track record can help turn a mediocre investment into a truly profitable endeavor. Having a team of mortgage bankers from places like Succeed at Eagle at your beck and call to advise you on all things real estate can make a huge difference.
Depending on your state, there are different requirements you may need to meet before you can get started. This may mean acquiring a real estate license, MLS access, paying dues to your local board of realtors, and more. Speak to other landlords in your area not only to build up a network of support, but also to find out any information you may need to know.
Real estate can be a great way to earn a profit, but it requires getting off to a strong start. Ensuring you have a proper information network and people who want to see you succeed is vital, as is making sure you have all of the necessary information a landlord would need. Going in blindly is a sure-fire way to lose money, but arming yourself with information and experienced partners can work as a secret weapon.
About the author: Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. Anica writes on behalf of Succeed at Eagle, which provides professional services for real estate agents.