How to Get Started in Real Estate Investing (6 Actionable Steps)

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SOURCE: Bigger Pockets

Many people dream of investing in real estate, but most never take the first step. If you want to get started in real estate investing, there are six actionable steps you can take today.

Step 1: Define Your Goals

No two real estate investors have the same goals. While one investor has an interest in flipping homes, another wants to invest heavily in rental properties. 

Define your goals based on your financial situation, risk tolerance, and long-term investment strategy.

Step 2: Educate Yourself on Real Estate Investing

There’s no such thing as having too much knowledge of real estate investing. The more you learn, the more confidence you’ll have in getting started. 

As you educate yourself, pay extra attention to market trends, successful investment strategies employed by experienced investors, and how to best use your knowledge and money to your advantage.

Step 3: Network With Experienced Real Estate Investors

You can read as much as you want about real estate investing, but there’s no replacement for networking with experienced real estate investors.  There are many benefits of doing so, including but not limited to:

  • Gain practical insights: Learn from the real-life experiences and challenges faced by seasoned investors.

  • Expand your professional network: Build connections that can lead to partnerships, mentorship, and investment opportunities.

  • Stay updated on market trends: Keep abreast of the latest market developments and investment strategies.

  • Access to resources and opportunities: Discover new resources, tools, and potential investment deals through your network.

  • Receive support and advice: Benefit from the guidance and advice of experienced investors.

Step 4: Choose a Specific Real Estate Investing Strategy

It’s one thing to say that you want to invest in real estate. It’s another thing entirely to do so with a purpose. Your success is based largely on your ability to choose the right investing strategy.

Some of the most commonly used real estate investing strategies include:

  • House hacking

  • The BRRRR strategy

  • The PRR strategy

  • House flipping

  • Live and flip

  • Real estate wholesaling

Learn as much as you can about each specific strategy to determine which one is best for you as a beginner. 

Step 5: Market Research

There’s no replacement for in-depth market research. It’s a risk to invest before you know the ins and outs of your market. At a minimum, your research should include the following:

  • Local economic trends: Understanding the economic health and growth prospects of the area.

  • Property values and trends: Tracking the changes in property values over time.

  • Rental market dynamics: Assessing the demand for rentals, average rents, and occupancy rates.

  • Local laws and regulations: Being aware of zoning laws, rental regulations, and tax implications.

  • Neighborhood characteristics: Evaluating factors like safety, amenities, schools, and future development plans.

Step 6: Assemble Your Team

You’re only as good as the team you build around you. Here are the types of professionals you need on your side:

  • Real estate agents: They provide valuable market insights and help in finding the best investment properties.

  • Lenders: Crucial for securing financing options tailored to your investment strategy and financial situation.

  • Tax and financial service professionals: Offer guidance on tax implications and financial planning to maximize your investment’s profitability.

  • Property managers: Essential for managing the day-to-day operations of rental properties, ensuring tenant satisfaction and property maintenance.

  • Contractors: Their expertise is vital for property renovations and repairs, impacting the value and appeal of your investments.

  • Professional services: Includes experts like appraisers and surveyors, who provide information for informed investment decisions.

  • Legal team: Important for navigating real estate laws, contracts, and legal disputes, thus protecting your investments legally.

  • Wholesalers: Provide access to off-market deals and potential investment opportunities at lower prices.

  • Insurance: Protects your investment properties against risks and unforeseen events, which secures your financial interests.

Your Journey Begins

Now that you know the basics of how to get started in real estate investing, you’re no longer lost and looking for answers. When you’re ready, take the first step on your journey—you won’t regret it!

SOURCE: Bigger Pockets

December 20, 2023 Weekly Market Watch with Chris Doucet

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December 13, 2023 Weekly Market Watch with Chris Doucet

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December 13, 2023 Weekly Market Watch with Chris Doucet marketingcenter--

The Perfect Home Could Be the One You Perfect After Buying

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There’s no denying mortgage rates and home prices are higher now than they were last year and that’s impacting what you can afford. At the same time, there are still fewer homes available for sale than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of homeownership a reality.

As you set out to make a purchase this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending your budget or limiting your pool of options too much because you’re searching for that perfect home.

Danielle Hale, Chief Economist at Realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”

To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:

  • Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).

  • Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).

  • Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).

If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.

While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.

Sometimes the perfect home is the one you perfect after buying it.

Once you’ve categorized your list in a way that works for you, discuss your top priorities with your real estate agent. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.

Bottom Line

With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget.

November 30, 2023 Weekly Market Watch with Chris Doucet

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