Posted over 3 years ago

Building a real estate business for beginners

8 steps of getting into the real estate business:

1. Learn all about real estate investing. You can spend time and money on official real estate courses or just pick up the information through blog posts, podcasts, webinars, etc. You can also attend real estate conferences that take place year round to learn and network. As a beginner in real estate, it’s crucial for you to learn as much as you can and the key is constantly learning.

2. Build a network of real estate professionals. It is about who you know! It can be said that know people might even be a game changer to your real estate business. Try to meet and greet and keep in contact with different people in the business, other young investors, home builders, agents, lenders, etc. Become a member of a real estate associate is another way to keep yourself in the known as well as putting yourself out there. Another aspect of network is establishing a mentorship for yourself. That one-on-one guidance is extra important when starting out with the business.

3. Search and select the best investment methods. There are many options to choose from: buy, renovate and sell, rent out or temporary Airbnb service, or crowdfunding. The objective is to find the best investing strategy that is convenience to generate a good and consistent revenue for the investor.

4. Learn and select the best financing option. Aside from bank loans, also consider funding from savings, friends and relatives. The initial costs to start a real estate business include down payment (usually 20%), home inspection, closing fees, fixes and repairs, property taxes and home insurance. It is also wise to have back-up amounts to offset unforeseen circumstances such as fixtures and disaster.

5. Choose the best neighborhood for the value of the property. The property’s location comes with opportunities and advantages. Renters prefer being close to shopping, schools, convenient stores, etc. while those who are investing are interested in affordability, great return on investment, and high rental occupancy.

6. Search for properties. Constantly on the lookout for properties as there would be great deals from time to time. Search on Zillow and Redfin as well as MLS, foreclosures, short sales, bank-owned and for sale by owner. For sale by owner has its advantage in that you can talk face-to-face and open yourself up with what you want. This interaction would at times land you the best deal and sometime bonus.

7. Always perform rental analysis on the property. Always run a check on the numbers to see how much you would get monthly from rent as well as how much you would have to spend for overheads. These numbers are always good to know for your decision making.

Topics: real estate, investment, rentals