The world of real estate investing is full of dream chasers. However, it’s not easy to start and scale your real estate portfolio. In today’s highly competitive market most people don’t have enough savings to buy positive cash flow properties. In this blog, I’ll be sharing a few tips on how to kickstart your investment journey and how to avoid the rut.
A vast majority of real estate investors get into real estate investing for two key reasons – 1. Cash Flow 2. Capital Gains
Real estate is an income-generating asset that can serve many however, to make profitable investments and reap the benefits in a consistent and long-term manner, you must learn to be a patient, diligent, and market-savvy investor. Let’s take a look at what it will take to succeed in this game and stay ahead of the competition at all times.
1. Determine your objectives
Identifying your objectives is the first step in real estate investing. Don’t go into it without knowing what you’re doing. The objectives of an investor should define what they want to get out of their investments and how soon.
Most real estate agents are blinded by the potential of quick close often ignoring the potential of helping their clients reach their maximum potential. Sometimes, it involves looking beyond the weeds to see the big picture and helping clients get to their goals in the most efficient manner possible. You can determine your objectives in 3 distinct areas
- Wealth Creation
- Lifestyle Creation
- Relationships
There will always be tough decisions on your plate, but the good news is that it is possible to move from the simply thinking about an ideal situation to living the life of your dreams. A great strategy is to keep it simple by starting small while keeping a close eye on expenses.
2. Get a mentor
Stepping into real estate investment can be overwhelming, especially if you lack hands-on experience, but it’s not difficult if you have a step by step system in place. The best way to learn is through a mentor who have been there before. We suggest speaking with an experienced real estate investor to gain knowledge more about the ins and outs of real estate investing. At Expert Investor Academy, we have made it our mission to empower investors with our proven process to build and grow their real estate portfolio. We are proud of hundreds of investors who have leveraged our insights and are successfully generating positive cash flow and phenomenal returns.
We all know that there is no shortage of real estate agents in Canada, but the key to success is partnering with someone who specializes in real estate investment. It a whole different ball game and without key industry insights you could end up losing serious money and time.
Get help from a mentor who has been there, done that. An expert in real estate investing is likely to be well-versed in the nuances and can show you opportunities or minefields which a regular real estate agent could easily miss.
3. Choose the right property
The definition of “right” would be different for each investor. For a newbie investor, this can be a challenging task, but it doesn’t have to be. The first and most significant characteristic to look for in a property is its possibility for appreciation. While it is a given that most property appreciates; the rate of appreciation does play a key role in how soon you can get to your dreams and goals.
Small renovations or cosmetic changes to a property can significantly increase its value. For example, a finished basement or upgraded bathrooms/kitchens may cost a bit but the returns can be significantly higher. Don’t let the cost of renovation deter you from investing in a piece of property that has strong upside.
There are many opportunities that come up every day in the world of real estate investing from single family residences as rental properties to foreclosure auctions, to probates to short sales. The ability to pick the right property, at the right time, at the right price sets you up for long term success.
The journey to a successful real estate portfolio may seem to be long, challenging, and tumultuous, but the end product – will be worth it. Real estate investing may be more accessible than you think and the sky is the limit when it comes to ideas and strategies to win this game of real life monopoly.
There are always a lot of headlines in the news that seem to get us all worked up. For example, real estate is a bubble and prices are going to crash, or mortgage rates are going to rise fast. But it’s important for an investor to let the hard facts do the talking – or in other words, let the numbers show how your investments can perform.
If you are interested in taking the next step toward establishing a real estate portfolio, we want to help by connecting you with experts and mentors. Let’s go over your situation, short and long-term goals so that we can take the time to make sure you find the perfect investing opportunities to take your portfolio to the next level.
