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Hello Realty411 Investor,
Are you ready to take control of your financial future and create an additional source of income through real estate investing? At Multifamily RealSuccess, we’ve dedicated our time and energy to developing tools and systems that are proven to guide you on a successful path to real estate investing.
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OFF MARKET DEALS: Secrets to Finding Off-Market Deals Manual
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Best regards,
Joe Arias Founder & CEO Multifamily RealSuccess
Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business. Contact us for a complimentary marketing session. Investors, do you have questions about real estate investing? Are you looking for a turnkey rental? Need a solid REI referral? Book a meeting with a Realty411 team member: CLICK HERE.
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Thinking of investing in real estate? You’ve come to the right place. Real estate has created financial independence for many throughout the years. Ordinary people have created significant wealth for themselves thanks to the power of real estate. By starting your journey with the right ideas, then you can begin reaping the rewards real estate has to offer.
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Education
No, you do not need a college degree to start investing in real estate. However, you should spend as much of your time as possible learning about investing in real estate. Knowledge is power and the more you learn about real estate, the better chances you have for succeeding. There are a variety of resources for you to learn real estate. It may seem overwhelming but that is a common feeling for many as real estate has so many categories and details. The best thing you should do is just get started. Pick up an interesting real estate book. Watch YouTube videos or listen to podcasts. Join your local real estate group. Talk with an agent. There are so many activities you can take advantage of to start your path towards learning more about real estate.
Finances
Another starting point on your journey towards investing in real estate is figuring out your current financial situation. How much liquid capital do you have access to? How much are you willing to invest? What is your current credit score? These are some of the many questions you should start asking yourself. It is not enough to know everything there is about real estate. You should also develop a strong financial literacy because finances play a big role in your ability to secure deals. A great strategy is to save as much money as you can while you are educating yourself about real estate. That way, by the time you are confident to start investing, you will have access to the capital you need to get started.
Goals
What are your goals? Do you want to achieve financial independence? Are you interested in flipping properties or would you prefer to start buying income-producing properties? Truly think about what you are looking to achieve out of the real estate and write them down. You should revisit your goals daily and weekly. You must be laser-focused when chasing your goals. Also, don’t forget to work backward. What steps will you need to take to achieve your goals? There are so many different options available when it comes to real estate. Think about which path you’d like to take and what outcomes you are looking to achieve.
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Final Thoughts
By starting with the right ideas, you can set yourself up for success by thinking about the necessary actions that you will need to take to begin investing in real estate. Thinking about educating yourself, understanding your finances, and developing your goals is a great place to start when beginning your journey towards investing in real estate. Take action today and start thinking through the suggested ideas or to begin your journey.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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The biggest mistake you can make when investing in real estate is believing there is only one way to invest. You probably have watched several shows on TV and assume the number one way to invest in real estate is a fix and flip deal. However, this is only one niche out of the many that allow you to invest in real estate and generate long-term wealth.
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Before going into detail around which categories are available to invest in within the real estate industry, it is best to start with writing down what your goals are. This will ensure you choose the right category that aligns with your level of risk tolerance along with your lifestyle. Some investments like fix and flips require more involvement on your part compared to other options like buying and holding rentals. Another factor to consider is your budget. Maybe you have heard of strategies involving no money down deals and those certainly exist. However, for the majority of investors, you will most likely require some kind of funding towards your first deal. Based on criteria set by your goals, lifestyle, and budget, you can choose from a category that matches your tolerance for investing.
A final note when considering investing in real estate. Don’t leave everything up to the experts. Here at RealSucces we highly recommended that you take the time to educate yourself on how to invest in the category you choose. Do the homework first while saving capital to begin and you will be well-positioned to begin your journey towards creating long-term wealth through real estate.
Invest in REITs – Real Estate Investment Trusts
Wonder how you can take a more liquid position in a real estate investment without worrying about or owning a physical property? A REIT is a low barrier way to begin your journey into investing in real estate. REITs are easily bought like stocks and available on the New York Stock Exchange or NASDAQ. You are buying into companies that own real estate such as residential, commercial, and industrial based properties. Simply use your existing brokerage account or a new one to purchase REITs and earn income in two ways. First, REITs pay a high dividend compared to traditional blue-chip stocks. Second, like a stock, the value of the REIT share can go up which you earn money through appreciation.
Buy and Hold Rentals
Most outsiders associate that being a landlord requires answering the midnight call to unclog a few toilets and criticize that tenants hardly pay rent. That couldn’t be further from the truth. First of all, if you set up your investment correctly, you never have to worry about this at all. You can simply hire a property management group to take care of managing your tenants. Oh and worried about bad tenants? You shouldn’t be. You are the one who gets to vet and filter through who you believe should be best placed in your investment property. Unless of course, you allow your property manager to do it for you. You are given financial records, references, and can request additional information to best vet through the right tenants. Investing in long term rentals is a great way to generate cash flow that can pay for many of your expenses.
Fix and Flips
The traditional fix and flip investment is the most commonly referenced way to invest in real estate. Yes, this requires more of your upfront effort but when you sell the home, you can pocket several thousands of dollars that make it all worth it. While businesses are built on the fix and flip model. Just do your research and see if this approach aligns with your level of involvement you’d like to have in your investment.
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There Is More!
Three of the many ways to invest in real estate have been mentioned but there are so many more creative ways to invest. Short-term AirBNB rentals, rent by the room, online real estate platforms, hard money lending, and so many more creative categories exist when investing in real estate. At RealSuccess we give you the tools you need to achieve your goals. The most important thing to remember is to write down your goals and align with the investing strategy that works with your lifestyle and needs.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/07/real-estate-investment-categories.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-07-03 04:17:532024-07-03 04:17:55Categories of Real Estate Investment
Real estate is one of the best investment vehicles in the world to make money. The versatility of real estate truly provides an opportunity to invest in a variety of different ways. No matter your background, experience, or financial situation, there is a way for anybody to get started in real estate today.
Why invest in real estate? Did you know in the last two centuries, over 90% of the world’s millionaires have been created by real estate? When it comes to investing in real estate, there are multiple different ways for investors to make money in real estate. Examples include passive income through rentals, appreciation from property prices increasing, flipping, and so many more creative ways. No matter your style or risk tolerance, real estate will present a way to make money to match your goals.
Fix and Flip
One of the most common ways investors make money in real estate is through fix and flips. In a nutshell, the goal is to purchase a home in disrepair below market price, remodel and fix up the home, and then put it back on the market to sell for a hefty profit.
Savvy investors can scale their business to accommodate over 100 flips per year. The average gross profit from a flip is about $62,700. Multiply that by any number of flips and you can see why so many investors are interested in fix and flips. A best practice is to buy in appreciating markets where the forced appreciation from fixing the home can also ride the demand within the market.
When analyzing deals, you’ll want to use comparable homes to understand what the potential price can be of your fix and flip. Consider factors based on your market. In certain markets, the value of the home may judge more on the square footage of the home. In others, it depends on the renovations more than the square footage. Look for opportunities for improvement. Can you add a bathroom or bedroom?
Also, remodeling kitchens are more important than the actual bedrooms. Many different strategies go into a fix and flip. Just understand that ultimately, your knowledge of the market and your ability to secure a deal under the market will help increase your chances of completing a successful flip.
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Buy and Hold
Another popular way to invest in real estate is through buying and hold rentals. This involves purchasing a property to rent out either for the short run or long term. Through buy and hold real estate, an investor can generate passive income by collecting rent each month. The way you make money is when buying the property, your expenses should be lower than what you are renting for.
Anything in between your expenses and the rental rate is your profit. Let’s say you buy a house for $150,000 and your monthly expenses that include mortgage, taxes, and insurance equal to about $1,000. You rent the house for $1,300. The net cash flow that you collect is $300 a month after everything. That’s $3,600 a year just from one investment. Again, multiply that number by the number of properties you’d like to own, and that number grows rapidly. At the same time, if you have a mortgage on the home, your home, each money you are gaining equity as you pay down the principal. Another includes appreciation. Real estate typically grows at a rate of 3.0% or higher depending on the market.
Over time your initial investment will be worth more. For those investors interested in passive income, Buy and Hold is a fantastic strategy to make money in real estate.
REIT
If buying real estate directly is not your interest, another possible way to still take advantage of earning an income from real estate without owning is buying into a REIT. A REIT is a real estate Investment Trust. You can buy a REIT the same way you would buy a stock which makes it more appealing to some investors. Usually, publicly-traded real estate investment companies that buy different real estate assets are what makeup REITs.
The advantage of buying a REIT is that they offer a high rate of return in the form of dividends. Some REITs even payout monthly. It is not uncommon to find a REIT that pays out over 5% return in the form of a dividend. The cash flow these companies generate from their rentals is passed onto their investors.
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However, unlike stocks, REITs typically don’t appreciate the way that stocks like Apple and Tesla do. Be wary that if you are looking to double or triple your money, a REIT probably is not the solution for you. That said, if you are looking to park your money and generate some form of passive income, a REIT may be a type of real estate investing that you may want to take a look at.
One other benefit behind a REIT is the barrier of entry. The fact is, as long as you have an account to buy stocks and REITs on, you can buy individual shares of a REIT and slowly grow your account. This is great for beginners that are looking for some form of cash flow.
Where To Start?
If you want to make money in real estate, consider investing in yourself and doing what it takes to learn about real estate. Additionally, you’ll want to get your finances in order as that is critical when it comes to buying real estate. Look into the different ways to invest in real estate and see which approach aligns best with your lifestyle and risk tolerance. Not everybody has the time to invest in flips and manage a rehab. Understanding which style of investing matches your goals is important before getting started. Speak to a few experts and gain some additional insight. Before long, you too can be making money through real estate.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/06/real-estate-money.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-06-24 06:09:172024-06-24 06:09:18HOW TO MAKE MONEY IN REAL ESTATE
Wholesale real estate is a great way to get some real estate investor experience without spending tons of money. Like any other real estate investing method, you should make sure this aligns with your goals and personal interests before getting started. In this article, we’ll help you better understand wholesale real estate for beginners so you can identify if it’s the right choice for you as you get started in real estate investing.
What is Real Estate Wholesaling?
Essentially, you would act as the “wholesaler.” Your job is to acquire a contract to sell from someone looking to sell a property. You would then find someone interested in buying the property – usually a real estate investor – and you will sell them the contract. Never at any point do you buy or sell the property. Instead, you find properties selling from slightly less than market value and connecting them to buyers for a fee. Many people like wholesaling real estate as beginners in investing because it doesn’t require you to invest any money in the properties. It’s relatively low risk and can have a low turnaround time.
Real estate wholesaling is completely legal, despite the debate around it. This is because the wholesaler is never actually selling the property, just the ownership of the contract to buy the property.
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How do You Make Money Through Real Estate Wholesaling?
As a wholesaler, your job will be to find properties that are being sold under market value. Once you get into contact with the property seller, you will work with them to get a purchase contract. You will have to do your research and provide your seller with information on the value of their home and why they should work with you. Once you get the contract, you will find a real estate investor interested in the property. You will then sell the purchase contract to the buyer. You earn your revenue through a wholesaling fee attached to connecting the buyer and the seller. This is typically a percentage of the overall cost. To reiterate, you are only selling the contract to purchase the property, not the property itself.
Many buyers like working with wholesalers because they do all of the work of finding the properties, assessing the value, and negotiating with sellers. Despite having to pay the wholesaling fee, it’s often still worth the extra cost.
The Pros of Wholesaling Real Estate for Beginners
Valuable Real Estate Knowledge and Experience
If you want to gain connections and knowledge about real estate without the financial risk, wholesaling real estate is excellent for beginners. You still learn the basics of real estate through negotiation, organizing, finances, and legal aspects. Through wholesaling, you’ll deal with many different properties and investors, and you can start to identify what you like and what you don’t. When you switch investment styles, you’ll know what to look for.
Quick Turnaround
After you learn what you need to know to get started, the best way to learn how to wholesale is to get the experience. You can get this experience quickly, as wholesale real estate can be a relatively quick turnaround. This is great for beginners because it means you get your money faster and build your connections faster. Things like house flipping can take months, and when you don’t have a lot of revenue coming in, that can hurt your potential to succeed in real estate. Wholesaling, however, has about a month turnaround for each business dealing. If you think you can handle more than one, you can time them out to make sure you’re getting paid more than once a month.
No Capital Required
The best part of real estate wholesaling is that you, as the wholesaler are not obligate to dish out any money. When you start off in real estate, money is often the most significant barrier to becoming successful. Choosing beginners who opt to start with wholesale real estate set themselves up for success because they make all of the valuable connections and gain experience and knowledge without investing all of their money. If you are worried about getting started because you do not have a lot of capital, wholesaling may be your best method.
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Cons of Wholesale Real Estate
No Guaranteed Income
Unlike other real estate investing methods, wholesale real estate has no guarantee of working out and ending in a paycheck. Beginners who decide to invest in property management can usually guarantee a steady income through tenants paying rent. The only time you will get paid is if you can successfully match a seller and a buyer and complete a deal. Even then, you’ll have to wait to get paid until everything goes through. As you get better, you’ll have more confidence in your income, but it’s never something you can count on.
Networking Heavy
Your paycheck is entirely dependent on your ability to find a buyer who wants to invest in the property you’ve found. Suppose you do not have the type of personality that does well with networking or negotiating. In that case, that is something you want to really consider before choosing wholesale real estate as your career. If you are unable to find a buyer, you may be financially obligated to purchase your property. As you build your references, this risk may be avoided. It’s still something you want to heavily consider if reaching out to a lot of people makes you uncomfortable.
Is Wholesale Real Estate Hard?
The short answer- yes. Wholesale real estate can be complicated when you’re first starting off and don’t have many connections. After you make your first couple of deals, things will start to get easier. You will begin forming a buyers list and have connections to pull from when you find properties under market value. The hardest part is having all three components in sync. If you are missing any of these three components, you will not have a successful wholesale real estate business. First, you must be able to identify properties being sold for well under market value. Second, you must have good negotiation skills to make deals with the seller. Lastly, you need to find and partner with cash buyers who are willing to purchase these properties. To be a successful real estate wholesaler, you have to build strong connections with buyers, create robust lead lists, and network with others in real estate.
Real Estate Wholesaling Explained
Wholesale real estate is a relatively simple concept once you lay it out in a scenario. Let’s start at the beginning of the process with finding a home for under market value. You find a homeowner looking to sell their home. The house isn’t in great shape and will not be able to sell for market value. The seller of the home has two options. They can spend the money to rehab their home and fix it up, hoping to sell for market price. Or, they could enter into a wholesale contract with a real estate wholesaler. Essentially, the contract between the wholesaler and the homeowner would give the wholesaler the right to buy the property at an agreed-upon price under market value. The real estate wholesaler will then look for an end buyer willing to pay slightly more than what they agreed upon with the seller. The end buyer is usually another real estate investor. The wholesaler will sell the rights to buy the house to this new investor. Essentially, they are selling the contract. They are not selling the home because they never bought the home. The wholesaler negotiates a contract, then sells that contract, which gives the buyer the right to buy the property.
Essential Skills to Become a Successful Real Estate Wholesaler as a Beginner
Real estate wholesaling comes down to a few key concepts. Once you capture these concepts, you’ll be able to succeed and start making a profit.
Negotiation Skills: Real estate wholesaling revolves around negotiating with both the seller and the buyer. For the seller, you have to convince them to sign a contract with you to sell the right to buy their home for under market value. Then, you have to convince an investor why they should be interested in buying your property. Having to convince one person is difficult, but convincing two takes some serious skills.
Technical Skills: If you are tech-savvy, you can quickly get ahead of your competition. Not everyone in the industry fully utilizes technology. If you take full advantage, you will become successful. Ensure you have a fast, modern website that makes it easy to get in touch with you. Develop a presence on social media and connect with real estate investors in your area. Utilize software to handle your finances, help you find properties under market value, and keep you organized. All of this will make a massive difference in your business.
Time Management Skills: You need to understand the value of your time and your own personal limits. If you take on everything all of the time, you’re going to get burnt out. This will not only affect your mental health, but it could also lead to errors in your business. Understand what you can personally manage, then outsource or delegate the rest.
Create Your Business Plan for Real Estate Wholesaling
If you’ve decided that wholesale real estate is the right next step for you, it’s time to develop a business plan.
Identify Good Places to Find Leads
This applies to both your real estate investors looking to buy and your homeowners looking to sell. If you can’t get leads, you’re not going to make any money in real estate wholesale. To find leads on homeowners looking to sell, utilize websites like Craiglist.com, Loopnet.com, Propertyshark.com, Realtor.com, etc. These websites provide tons of data that can help you find leads for your business. For leads on real estate investors, use your networking skills. Put yourself in real estate groups and places where investors will be and start making valuable connections. Establishing an excellent social media presence can also help you build rapport with other real estate professionals.
Build Connections with Buyers
Every time you complete a sale to a buyer, have a conversation with them about how you can be mutually beneficial to each other. Take the time to understand what they are looking for in properties they invest in. Keep a spreadsheet of all buyers you work with and what types of properties they buy. Reference this sheet every time you find a property that you can wholesale and pair it up with the buyer who it matches. This could take time but will build an invaluable relationship.
Do Your Research
Both your seller and your buyer expect you to offer them a well-researched and honest price for the property. For your seller, you need to give them a price along with information on comparable sales in the area, estimated cost of repairs, and the after repair value of the property. All of these numbers should be included in your offer to both the seller and the buyer. Do not try to edit the numbers to profit more. Sellers who see through this will be offended and cancel the deal. Buyers will have done their research and will know what you did. You’ll get a bad reputation, and the buyer will never want to work with you again.
How to Find Buyers for Real Estate Wholesale Deals
You can find sellers who have great properties under market value, but you will never make a profit if you can’t find any buyers. The more deals you make, the more buyers you’ll form connections with, and the easier it will get. Until then, you need to learn some strategies on how to find buyers when you are a wholesale real estate beginner. These are a few creative ways to find buyers when you are first starting out in wholesale real estate.
Craigslist
Craigslist is a great place to start when looking buyers. The site allows you to place ads and start collecting leads on interest buyers. Aside from that, you can use Craigslist’s “housing” section to identify property owners in the area who may not be ready to buy right now but could be valuable connections later on.
Social Media
Social media is a great way to find real estate investors in your area and connect with them. Sites like LinkedIn, Instagram, Facebook, and even NextDoor could be good places to start. Many investors have Instagram accounts where they post about their house flips or deals. Start building a connection with local accounts that could turn into buyers. LinkedIn is a great place to make business connections and post about potential deals. Facebook has lots of local real estate groups you can join; they also have Marketplace features that include real estate options. You can either post in those or look for leads later on.
Networking
Networking will be one of the most valuable things you do in your real estate career. If you are not already a member, join your local real estate group, either online or in person. Go to every networking event and meet as many people as possible. Mention what you do and ask around to see if anyone knows of real estate investors who utilize wholesale real estate in their businesses. You may also want to build connections with real estate agents, as they have access to lists of recent cash sales.
Website
Establish your presence online as a real estate wholesaler and optimize your SEO so that you rank well on Google if anyone searches in your area for wholesale real estate. Create a lead capture form on your website where potential sellers and buyers can submit their information.
Courthouse Auctions
Buyers must have all cash at courthouse auctions, so this is a great place to go if you are looking for buyers for your deals. Visit these auctions regularly and start to build connections with the people who attend. Get to know these buyers and the types of properties they look for so you can reach out if you find one that fits their needs. Ask for their information and follow up.
Important Things to Remember for Real Estate Wholesaling
Utilize Buyer Preferences
Every buyer has their preference of properties they like to buy. Once you know what your buyers are interested in, you can start prioritizing deals based on that. Keep a spreadsheet of all of their preferences and reach out to them when one of your properties align with their interest. Do not reach out to buyers with every single deal if you don’t to. If one of your buyers is not a house flipper, don’t have them a house that needs a ton of work. Utilizing your knowledge of your buyers will help you guarantee a sale.
Understand Your Seller
Although you want to get your properties contracted for a low price, you need to be fair to your sellers. While you may understand why you are offering them a specific price, if you do not communicate all of those reasons to them, they will not. When speaking, you will want to show them your reasoning without making them feel bad about the state of their property or the value it’s at. While this all comes down to numbers in real estate, it may be a much more emotional process for them. There could be other buyers communicating with them for all you know, so make sure you form a good connection during this process.
Another important aspect of your wholesaling real estate business should be transparency. Sellers need to know that they can trust you. If they know that, they’ll be much more likely to work with you. Be honest about them with pricing, risk, and updates.
Keep Everyone Up-to-Date
Your buyer and your seller will feel more at ease if you are transparent with them every step of the way. Make sure to communicate with both of them any time something new happens. Even if you did your part and got the contract handed over, stay involved until the end. These are relationships you may need to use in the future for more deals, so you want to make sure everyone feels comfortable and happy. Do what you can to ensure open communication and complete transparency throughout the entire process.
Maintain Connections
Your business with your buyers should not end when you get your cut. Always follow up with them to make sure they are happy with how things went. Discuss with them in further detail how you can be an asset to each other and continue to build your working relationship long after the deal is closed.
The Last Step: Closing the Deal
Once you have done all of the work to find the property, work with the seller, and identify an interested buyer, you are finally at the last step: closing the deal. To do this, you will assign the contract you made with the seller at the beginning of this process. Once you assign the contract to the buyer, they will then be able to purchase the property. Once the buyer purchases the property, you will send the deposit to the title agency or attorney handling the closing. After everything is complete, you will get your wholesaler fee for connecting the buyer and seller.
This can all sound like a lot of information and may appear to be very overwhelming. Although a lot goes into this, there’s a reason people recommend wholesaling real estate for beginners. It is the most affordable way to get invaluable real estate experience when starting off in real estate. You will build skills, knowledge, and connection so quickly through wholesaling. To get started on your real estate investing journey, check out our website.
Joe Arias
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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Investing in real estate is a skill that can be developed over time. However, the skill of real estate investing is composed of sub-skills and traits that add up into the overarching experience and know-how on how to invest in real estate. By understanding the keys of what makes a good real estate investor, you can make the adjustments needed to also become a good real estate investor. The good news is that none of the skills or traits needed to become a successful real estate investor require anything that you wouldn’t have access to.
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Develop Your Network
Becoming a good real estate investor involves developing the right relationships and growing your network. Every good real estate investor knows that the right network provides support and opportunities. Who should be included in your network? Focus on finding mentors, other investors, agents, mortgage brokers, lawyers, and potential business partners. You can leverage each individual’s experience to further your own investment goals. Sign up to local real estate organizations and online communities to find individuals to network with.
Stay Educated
A good real estate investor understands the value of constantly learning. It is important to stay up to date with the latest industry news, current events, and changes in laws when it comes to real estate and any other business as a matter of fact. But also, it is important to continue learning new real estate investing related skills and sharpening the ones you already have. Investing in real estate can become very competitive. By taking the time to learn and continue to educate yourself, you can become a good real estate investor and stay competitive in the marketplace.
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Focus On A Niche
A jack of all trades is a master of none. There are many different niches within real estate. Most investors fail by trying to tackle them all. Niches such as buy and hold, fix and flip, wholesaling, section 8, commercial, and much more are some of the many niches that an investor can get involved in when it comes to investing in real estate. Take the time to find a niche that aligns best with your goals and approach to investing. Once you’ve chosen your niche, take the time to master that niche. By being the best at one thing, you are setting yourself up for greater success.
Know Your Market
The best place to start investing is in your own backyard. Why? Because you already know the market. You are familiar with the good neighborhoods versus the bad. You know where all the public transportation is and all the best shopping. If you don’t live in the market you are investing in, then still become an expert. Every market is different. The more you know about a particular market empowers you to make better decisions and avoid costly ones. Take the time to truly understand your market and you will be able to spot better quality deals which in turn, will be much more profitable deals.
Joe Arias
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/05/real-estate-key.png4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-05-22 05:07:082024-05-22 05:07:09KEYS TO BEING A GOOD REAL ESTATE INVESTOR
Want to make money without having to put in a lot of work? You may want to consider passive real estate investing. It is the perfect solution for an aspiring investor who may have other time commitments like a full-time jobs that does not allow much time to be a property manager or a home flipper. Each of those activities requires at least a little bit of time on your part. You have to collect rent, market your property for rent, make repairs, and so forth.
With passive real estate investing, you basically write a check and then sit back and collect mone over time. There are a couple of different options when you get into passive real estate investing, each comes with its own risks and varied amounts of returns. They are pretty easy to get in to and do not require a lot of knowledge in the real estate industry to be successful. Here are several passive real estate options worth looking into:
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What is Passive Real Estate Investing?
Before we jump into what types of passive real estate options are out there, let’s first look at what passive real estate investing is.
In simplest terms, passive real estate investing is investing in real estate without requiring hands-on effort or active participation. Passive real estate investing can either be direct or indirect. The main difference between the two is the amount of work you have to contribute to each investment.
Why Is Passive Investing a Good Idea?
When you are a passive real estate investor, you will earn money without having to actively work for it. Basically, you pay someone an agree upon amount of money and they do all the hard work for you. Here are some ways you can put you passive income to use:
Build a retirement fund
Pay off your debts
Increase your savings account
While there are non-real estate related ways to earn passive income, let’s just focus on those that do involve real estate in some form. Here are a few ideas for you on how to invest in passive real estate:
Direct passive real estate investing
In this case, an investor will purchase a property which is then rented out to a tenant. This can be done in the form of short-term or long-term rentals. In order to simplify the process, many investors will hire a property management company to do time-consuming duties like maintenance, rent collection, or any other situations that may arise. This allows the investor to have very little active responsibility in their investment, making it a passive investment.
Indirect passive real estate investing
Suppose you want something which requires even less involvement than being a landlord and renting out a property to a tenant. In that case, you can invest in an indirect passive real estate investment by investing in a real estate investment trust (REIT). You will have no day-to-day tasks related to this form of investment and do not need to have very much real estate knowledge to be successful. You will still collect income in the form of returns and dividends.
Different Types of REITs
Real estate investment trusts are made up of corporations, trusts, or associations. These groups invest in large income-producing real estate like commercial buildings, hotels, data centers, or apartment complexes. Investing in a REIT is usually a low-risk investment and is traded like a stock.
There are three types of REITs you can invest in:
Exchange-traded: Registered with the SEC and listed on exchanges like the NYSE.
Non-traded: Registered with the SEC but do not trade publicly. These tend to be more stable since they do not fluctuate with the market.
Private: Not registered with the SEC or traded on exchanges. They raise funds through private investors.
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A well-managed REIT lessens risk by including large groups of properties rather than individual properties. One good thing about them from an investment standpoint is that they provide annual dividend income as well as long-term appreciation. You are usually able to withdraw money from the REIT when you need it, but will be subject to paying taxes on your returns.
There are a couple of downsides to investing in REITs. They are required to distribute 90% of their profits annually, which means they are not able to reinvest funds annually, which can prevent long-term growth. You also don’t have a tangible asset and cannot control any part of the decisions made related to your investment.
Tax Liens
Another passive real estate option is investing in tax liens. According to the National Tax Lien Association, $14 billion in property taxes go unpaid each year. When a homeowner falls behind on their property taxes, the county or municipality where the property is located will issue a tax lien against the property, which the tax assessor’s office usually issues.
These tax liens can be auctioned off to investors. If you win a tax lien auction, you will earn interest until the homeowner pays off the outstanding taxes. You receive your share and accrued interest when the homeowner sends the county a tax payment.
Interest rates on a tax lien can be as high as 12%, which would give you a very nice return on investment. In very rare cases, you may even be able to foreclose on and acquire the property for an incredibly low price.
Tax lien investing can be confusing and maybe more work than a passive real estate investor is willing to commit to. Depending on the state you purchase the tax lien from, you may be required to notify the homeowner frequently in an attempt to collect the debt. This is certainly not for everyone.
Crowdfunding
Another type of passive real estate investing is crowdfunding. With real estate crowdfunding, groups of investors combine their money to purchase commercial properties, apartment complexes, and single-family home portfolios. These are mostly managed and executed through online platforms where investors are able to view progress and send payments.
Crowdfunding is very popular because it is so easy and does not require a large investment. Neighborhood Ventures is a Phoenix-based real estate crowdfunding company. Their projects are usually funded in a matter of days. They buy old apartment buildings, renovate them and then rent them to tenants. They take on projects in their own neighborhoods in an attempt to keep their investment dollars local and improve the communities where they live and work. Investors can very easily and quickly create an online account, upload their funds – as little as $1,000, choose a project, and watch their money grow.
Crowdfunding is another very hands-off investment. Since there are so many crowdfunding companies that are very transparent in the properties they will be purchasing, you do have the ability to choose a project in a real estate market with the potential for large returns. With a company like Neighborhood Ventures, you would be investing in the Phoenix Metro area which is one of the hottest real estate markets in the country, seeing double digit returns each year.
Many real estate crowd funders do require holding your money for a specified period of time. This ties up your money and makes it difficult or impossible to cash out at a moment’s notice in the case of an emergency.
Passive Real Estate Investment or Stocks? Which is the Better Investment?
Deciding between real estate or stock investments is a personal choice that depends on your financial situation, risk tolerance, and goals. You can make money two ways with stocks: value appreciation as the company’s stock increases and dividends. Your returns are based on stock market activity as well as the company’s earning.
Real estate has proven to bring in higher returns in a shorter period of time in most major real estate markets. According to the S&P 500 Index, the average return on investment in the US real estate market is 10.6%. Comparatively, the average annual return for the S&P Index over the past 20 years is only 8.6%. Real estate also tends to be less volatile than the stock market. REITs and crowdfunding reduce the risk further since you are able to enter into the investment for little money out of pocket.
Overall, real estate and stocks both present risks and rewards. There is no right way to invest and people have seen both huge returns as well as huge losses by investing with each.
Risks in Passive Real Estate Investing
Every investment comes with a series of risks, and passive real estate investing is no different; you carry the ongoing threat of losing your principal. First, if you are hoping to make a lot of money through passive real estate investing, you may be disappointed. Something else to be aware of is that there are a lot of passive real estate investment opportunities out there, and they are not all created the same. Always do your due diligence before investing, as no investment can guarantee you either a return or even protection of all your principal. Performing your own due diligence can help you find safer and possibly more profitable investments for your capital.
Here are some things to look out for when considering investing:
What is the company’s track record? You could take a look to see their past projects and how much money they made. If the company is consistently failing to complete projects or are not generating the returns they advertise, you may want to pass.
How much debt is the company in, and what are the details? Look to see if their debt is due to mismanagement. If so, this is another red flag, and you should probably pass.
What do other investors say about the company? You should be able to find online reviews about them.
Do they communicate with their investors? It is usually not a good sign if you invest money and then have no idea what the project’s progress is.
The Bottom Line
Many investors have made a lot of money through passive real estate investing. If you find the right REIT or crowdfunding or other passive real estate investment company to invest in, you can make money while you sleep. So, if you are looking for an easy, low-cost investment, passive real estate investment may be your best bet.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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It’s no surprise to hear that investing in real estate is one of the best ways to build wealth and gain financial freedom. So many successful people have figured out how to make millions in real estate. When you work hard, constantly aim to learn and grow, and network efficiently, you can also make millions in real estate. Unfortunately, many people go into real estate expecting to make a ton of money without putting in the work. If you do not go about it correctly, you can lose money in real estate instead of gaining it.
Tips for How to Make Millions in Real Estate Investing
Focus on One Method at a Time
There are so many different methods to make millions in real estate investing. But you can’t do it if you are spread too thin. You have to master one thing and get good at it if you want to make money doing it. It’s also important to focus on one method so you can fully understand your goals. If you have multiple methods happening simultaneously, your goals could start to get a little murky.
Not to mention, trying to do everything at once can lead to costly mistakes. You simply won’t have the time, energy, or knowledge to follow through on every avenue.
Many people who are just starting off in real estate investing choose to do either real estate wholesaling or invest in rental properties. Real estate wholesaling is great for beginners because it requires very little to no capital to get started. It can be a little tricky at first getting the connections for your first sale, but it’s an excellent way to get your feet wet with little risk on your end. Investing in rental properties is another great investment when starting off because it’s generally pretty simple and, if done correctly, will result in a steady flow of cash each month. That cash can be reinvested into more real estate investments. As you continue to profit and buy more properties, your portfolio will grow, and you will be that much closing to being able to make millions in real estate.
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Establish Your Goals
Once you have narrowed down the method of real estate investing you want to focus on, you must establish your goals. Consider questions like: What are your short-term goals? What are your long-term goals? What types of properties do you want to invest in? Without goals, you will never make it to becoming a millionaire through real estate. When you know what you want out of your investments and your career, you can begin to make smart business choices that align with your goals. You will have an easier time choosing the investments that help you achieve success. You’ll also have an easier time deciding what types of properties you want to invest in, how you plan to finance them, and how to manage them properly.
Break Down Your Goals Into Steps
Of course, it’s essential to think big when setting your personal and professional goals. You also need to be realistic on what you can accomplish based on your experience, capital, and time. You cannot make millions in real estate overnight. It will take a lot of time and hard work, and you need to be realistic about that with yourself. Now that you’ve established your short-term goal start there. Break that goal down into smaller steps until you reach something actionable that you can do today to get started. Consider how long each step will take until you fully complete your short-term goal. As you complete this step, you may realize that you need to go back and set a new goal. That is absolutely fine and a significant first step toward success. As you begin to work through these steps, you may find that you need to edit or change some.
Don’t Invest All of Your Money on Day One
It can be exciting to get started in real estate investment. However, you should not put all of your money into your very first investment. You are at your least experienced that you will ever be, and you’ll likely make a few mistakes. These mistakes will help you grow as an investor and eventually make millions in real estate, but not if you put all of your money into them right away. The best thing you can do for yourself is to start small and make less expensive investments like single-family homes to start. Once you gain more knowledge, experience, and connections, you can begin to make larger investments.
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Constantly Educate Yourself
The biggest thing you can do for yourself when learning how to make millions in real estate investing is to educate yourself. Learn as much as you can from every experience and every connection you make. Ask lots of questions to others in the field. Consider getting a mentor who aligns with your goals to help you quickly learn how to become as successful as they are. Read books and articles, watch videos, and listen to podcasts. Constantly learning about everything new in real estate will quickly put you ahead of your competition and have you making millions years before anyone else.
Take Action
Education is nothing without action. You can spend years learning everything from every book and article and person you talk to, but it means nothing if you don’t put it into practice. Getting started will be scary, but you’ll never know if you can succeed unless you try. All of the knowledge you gained will help you get started. From there, you’ll gain invaluable experience that will teach you more than any book ever could.
Start an Emergency Fund
Ideally, you will reach a point in your career where you can trust all of your income streams to support you. When you are just starting, you don’t have that type of protection. Try to save at least six months’ worth of expenses in a savings account if anything happens, and you no longer have your income. You never know when something might happen. You may have to make extensive repairs on a property that cost a lot of money. Sometimes your properties may sit vacant and have no income. In situations like these, it’s crucial to be covered financially.
Utilize Mortgage Loans
Many people assume that you need to have a lot of money to get started investing in real estate. You don’t have to be rich to make millions in real estate; you just have to be smart. While there certainly are very wealthy people who do very well in real estate, it isn’t a necessity when you are just getting started.
Many people utilize mortgage loans when buying their first income property. How this works if you take out a loan to pay for a property. When you get tenants, they will pay you enough to cover the loan payments while still making a profit entirely. Utilizing loans allows you to buy a larger property and make more money. Once you start profiting off of that property, you can continue investing in others.
Use Data to Your Advantage
If you understand how to pull and read data and analytics, you have a greater chance of making millions in real estate. Understanding how to track and read numbers is essential for your success. When looking at potential properties, you should pull reports from different investment software and take the time to analyze how profitable those properties could potentially be. Once you get started, being able to analyze the reports from your real estate accounting software will help you make better decisions and understand your profits.
Utilize Appreciation for Profit
While not as guaranteed as profit from tenants, investors can make a lot of money by investing in properties that they predict will appreciate. When a neighborhood is up and coming, and you buy a property for a reasonably low value, rent from your tenants will be low for a few years. Once the neighborhood has become more in-demand and popular, you can start raising the rent. Because property values are high in the area, you won’t detract potential tenants by raising your rent. Plus, if you decide to sell the property, you’ll make a nice profit.
If it’s not an up-and-coming area, there are still things you can do to increase the value of your property and charge more in rent. Making small cosmetic changes and improvements with your profits can result in you making more money.
Build Your Real Estate Team
If you are looking to make millions in real estate, you cannot do it alone. You have to prioritize teamwork and trust in others to help you succeed. There are many different aspects of real estate that plenty of people specialize in. As a beginner in real estate investing, it’s even more critical that you find a real estate team you can trust. These people can help you avoid costly mistakes and succeed in real estate.
The following are some of the most important people that you will want on your real estate team:
Accountant
Accountability Partner or Group
Administrative Assistant
Attorney
Bookkeeper
Cleaning Company
Electrician
General Contractor
Handyman
Hard Money Lender
Inspector
Insurance Agent
Leasing Agent
Marketing Coordinator
Mentor
Pest Control Company
Private Money Lender or Equity Partner
Property Manager
Title Company
While you certainly won’t need every single one of the people on this list right away, you should start making connections now for the day that you will need them. Not every person you add to your team needs to be a permanent member. As you learn and grow, many of these people will change, but it’s essential to have them to start.
Summary
Making money through real estate investing is not an easy thing to do. If you take the time to learn as much as you can, set realistic goals, specialize in a specific method, and utilize your connections, you can make millions in real estate. To fully unlock your potential, check out our site and learn how to gain financial freedom through real estate investments.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/04/real-estate-money.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-04-08 01:56:262024-04-08 01:56:28HOW TO MAKE MILLIONS IN REAL ESTATE
Investing in apartments is one of the easiest and best ways to make money as a real estate investor. Apartments will always be in demand, especially as younger demographics continue to wait until later in life to buy homes. Aside from the regular maintenance, renting apartments for profit is a generally hands-off process, making it great for beginners just getting into real estate investing. In this article, we will share how you can buy an apartment to rent out for profit.
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Why You Should Buy an Apartment as an Investment
Before explaining how you can buy an apartment as a real estate investment, it’s important to address why you want to. When done correctly and knowledgeably, apartments can be a very profitable real estate investment strategy. With apartment investing, you have a guaranteed amount of money that you know will come in every single month. Many other real estate investing strategies do not have this reliable income stream. Apartments are also generally easy to maintain. As long as you are not investing in a large complex – which is not recommended for beginners – you will not need to rely on paying any management companies. Since demand is high for apartments, they are seen as low-risk investments, which is perfect for any beginner. It will be very easy for you to keep vacancy low and profit quickly.
How to Buy an Apartment for Real Estate Investing
There are many steps to buying an apartment for real estate investing. You will have to pick where it will be, find a good fit, conduct an analysis, look into options for financing, get it appraised, and then get tenants to start making an income from it. Below are the steps broken down into specifics to help you get started in apartment real estate investing.
Decide on a Location
The first step of buying an apartment is to decide where you will buy. There are important factors to consider: median home value, median age, unemployment rate, population growth, median salary, and job growth. All of these factors give you a little more insight into the area and the direction in which it is going. Areas with high job growth and low unemployment rates mean there are plenty of jobs. This, in turn, will lead to population growth and will result in more demand for apartments and eventually allow you to charge higher rates. Choose somewhere that is growing but not outright unaffordable for buying your first property.
Find Apartments for Sale
Once you have decided on a location, it is time to start looking for apartments for sale. At this point, you need to start considering what you are looking for in an apartment building. Consider things like the number of units, whether or not you will need to renovate, and home value. An apartment building may be a perfect fit with unit types, but it may not be the best option for your first investment property if it is pricey and will require work.
Perform a Property Analysis
Once you have narrowed down your search and found a few properties that you think could be a good fit, it’s time to perform a property analysis to understand further which property is the best option. Use the investment property calculator to get an idea of each property’s cap rate, positive cash flow, and cash on cash return. These numbers will let you know the property is a good investment or not.
Look Into Financing Options
Now that you have a better understanding of the costs of the apartments you are looking at and the return you expect to get, it’s time to look into your financing options. Most real estate investors do not have the capital on their first deal to buy it outright. Using financing will allow you to buy the property and use the income to pay it off quickly. You can either choose to finance through a traditional mortgage, a home equity loan, or private financing. Most beginners prefer to do a traditional mortgage for their first property, but you must do your research and find the financing option that works best for you. If you already have a home, you may be better off with the home equity loan.
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Get the Apartment Inspected and Appraised
Once you decide on the apartment you feel is the best investment, you need to have it professionally inspected and appraised. The inspection is essential to ensure you are not buying a property with any damage you were not aware of. Structural damage especially could be very costly. Your mortgage provider will require an appraisal to ensure the purchase price is similar to the appraised value.
Renting the Apartment
Once you have purchased the apartment, it’s time to rent it out and make some income. For the best results, you will want to invest in making any necessary home improvements and ensuring the apartments have a modern look with updated appliances and amenities. Make sure to screen all potential renters to lessen your chances of dealing with eviction or undesirable tenants. Hire an attorney when you first start off to deal with all of the legal aspects of renting out an apartment.
Summary
Learning how to buy an apartment is essential to a successful real estate investment strategy. It’s an excellent way for beginners to start making a reliable income from their investment properties. Apartments are generally very little work once they are purchased and are an easy way to make passive income.
For more tips on real estate investing, make sure to check out the rest of our articles.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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Are you looking into how to buy a mobile home for real estate investing? First, you need to understand whether or not buying a mobile home will be a worthwhile investment. If you follow the proper steps for mobile home investing, it can certainly be a profitable business venture. Before getting into the steps you need to take to have a profitable mobile home real estate company, let’s first look at the pros and cons of investing in these types of properties.
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Pros of Investing in Mobile Homes
Mobile homes are advantageous because
they are cheaper than investing in other types of real estate. Because
they are mass-produced and not built one-by-one like homes, they cost
much less than traditional houses.
Because they are less expensive, you
may be able to invest more money in making them a little more modern.
You can add things like granite counter, hardwood floors, and updated
appliances with the money you save from buying mobile homes. This
increases the value and helps get them rented or sold faster.
As house prices rise across the
country, more and more people are looking for affordable options. As a
mobile home real estate investor, this puts you in a uniquely profitable
situation. Mobile homes are beginning to be seen as a viable option to
replace a more expensive traditional house. Even better, mobile home
tenants tend to rent for more extended periods of time than those in
apartments or traditional homes. This helps you avoid lost rent between
tenants.
Cons of Investing in Mobile Homes
Unfortunately, many people view
mobile homes in a negative light. They do not see them as respectable
options for homes. This view is slowly changing, but it is something to
keep in mind. You simply won’t have the same demand for mobile homes as
you would a traditional property.
Mobile homes can quickly become
costly if you invest in the wrong property. Some mobile homes may
require you to buy the land you want to keep it on. This is something
you need to keep in mind when determining your expenses and return on
investment. You should also note that, unlike houses, mobile homes
depreciate in value relatively quickly. This is great if you want to buy
an old mobile home and fit it up, but not great for resale value if you
ever want to get rid of the property.
Finally, you may run into trouble
trying to finance your mobile home. Traditional lenders often won’t fund
you the way they would if you were buying a traditional house. If the
mobile home you are buying does not already come with land, it’s likely
you will not receive financing. This is something you need to consider
before jumping into buying a mobile home.
Now that we’ve got the benefits and
drawbacks out of the way, we can look at improvements you can make to
mobile homes. These will help raise property value and allow you to
charge more for the mobile home. This can help you develop a good
revenue stream and allow you to grow your real estate investment
portfolio.
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Improvements to Increase the Value of Your Mobile Home
Attic
The attic of a mobile home is
probably the most overlooked area, but it has some great potential. Even
if you don’t have the room to build a full-sized building on top of
your home, you can easily create a multi-level living area by installing adequate insulation
on the interior walls. One way to boost your home’s value is to build
an attic loft and add an elevator or stairway connecting it to the
ground floor.
Conversion
A second option for upgrading your
home is to convert it to a larger house. In this scenario, you would
tear out the interior walls and put in new ones. The following are some
other types of conversions that can be beneficial: A sunroom (to create
more living space), an addition on the side (to add more bedrooms), a
deck area (to create outdoor living space), and a basement expansion (so
you have a place to keep all of your possessions that aren’t stored in
the attic).
Upgrades
A third option is a simple upgrade of
the home’s interior. The first thing to do is keep the original ceiling
and replace it with a higher-quality material, such as wood. Some other
upgrades that can be made to the structure include vinyl and natural
flooring, new bathroom and kitchen fixtures, new doors, appliances, and
cabinets.
Landscaping
If you are looking to make your
mobile home more appealing, you should focus on the building’s exterior.
There are plenty of ways that you can upgrade your property to make it
more attractive. You can change out the landscaping, which will provide
an area of privacy and allow for greater land value. One way to make
landscaping more appealing is to add a deck or patio area to have a
designated area for outdoor living space.
Exterior lighting
Another significant exterior
improvement is the addition of outdoor lighting. Lighting can also boost
your home’s value because many buyers prefer homes with street lights,
walkways, and security lights. Your home’s lighting should be made up of
high-quality, energy-efficient HID bulbs to ensure that it is both safe
and functional.
Front Porch
The front porch is a large area that
can be made into a place to entertain or relax. Adding a new roofing
material to your home’s exterior above the porch can give it a facelift
while also bringing in some more value. There are many types of roofing
materials, but the most popular is asphalt shingle. Be sure to get a
warranty with the roofing installation, so if something goes wrong with
it, you can fix it.
Fencing
The final exterior upgrade is
fencing. Fences are a great way to increase the value of your home while
also giving it some privacy and protection. A fence can be made from
many materials, but most are either wood or vinyl.
These are just a few of the ways that
you can go about upgrading your mobile home and making it more
valuable. Just remember to keep the safety of your customers in mind.
Advantages of Mobile Home Investing
There are several advantages to
investing in a mobile home. As stated before, they are cheaper than
investing in another type of real estate. They are easy to find and can
be located in more appealing areas. They can be bought for less than
they cost new. If you don’t have the money to buy your home new, you can
get one that is pretty close to new for a lower price. In addition, you
can find mobile homes that are in great condition and ready for someone
else to move into. That is a rare opportunity to buy a piece of real
estate and have someone else pay you to live in it.
What Determines a Good Property Investment
There are many important factors to consider and evaluate when determining whether or not a home is a good investment:
The property must be located in a strong, healthy real estate market.
The property must offer the potential for both upside and downside growth with a low vacancy rate of tenants.
The property must be professionally managed to keep vacancy rates low and the property in good shape.
The property should be purchased below market value (what it would cost you to build, if ever).
The cash flow should exceed at least 5% per month, preferably more like 15% or 20% per month.
For most people, the ideal investment
would be a home that provides long-term value growth (appreciation) but
with modest increases in monthly income (cash flow).
Tips for Buying Used Mobile Homes
There are several tips that you can
follow if you want to be successful when it comes to buying used mobile
homes. First, make sure you take lots of pictures of the mobile home and
its surroundings so that you can genuinely get a good idea of what it
looks like. Additionally, don’t go into negotiations thinking that the
seller will give you a good deal. Instead, make an offer that you think
is fair, and you can live with. Lastly, remember to avoid being taken
advantage of by people trying to sell you used mobile homes for a lot
more than they are worth. When considering a price that seems fair, look
into recent sales on comparable mobile homes in the area. Take into
account what you plan to make through renting it or reselling it, and
make sure the return on investment is high enough.
Tips for Selling Used Mobile Homes
The following tips will help you
maximize the profit in your mobile home. First, make sure that there is
nothing that needs to be repaired before you sell it. Make any necessary
repairs or changes to ensure that it sells for a profitable and fair
price. Additionally, make sure that you clean out the mobile home of any
personal items. If it is presented as clean and not in need of any
repairs, it will be easy to get someone to pay you a fair price. Lastly,
be entirely transparent about the mobile home and anything they need to
know about it. Buyers who view you as untrustworthy will not want to
buy from you.
Process of Buying a Mobile Home
Conducting a simple investigation
online can help you learn how to buy a mobile home, which is relatively
easy. Once you find a mobile home, you can sign a contract immediately
to ensure that the mobile home doesn’t get sold to anyone else. Once
the contract is signed, the seller will need to provide information
about the property. This information includes details such as who owns
the property and if there are any liens against it. Once all of this
information has been collected, the title will be transferred, and the
buyer will have control over the mobile home.
Summary
When you are looking for a mobile
home, it can be a daunting task. However, if you remember to think about
your needs first and then look at the available mobile homes, it will
make the experience much more enjoyable. Additionally, remember not to
fall victim to scams while looking at mobile homes. Do your research to
find good areas to invest in mobile homes. Understand the best
investments that work with your capital and what you expect to make from
your investments.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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