15 Smart Skills for Real Estate Investing
Business

15 Smart Skills for Real Estate Investing

Disclaimer: Please note the links in this post are affiliate links. This means if you click on the link and purchase the item, we may receive a small affiliate commission at no extra cost to you. This also helps us create more useful blog content for you – thank you for your support! All opinions remain our own.

15 Smart Skills for Real Estate Investing

15 Smarts Skills for Real Estate Investing

Too many people have made the mistake of thinking they lack the funds to successfully invest in real estate. Fortunately for you, you have discovered this article.  You are about to learn some of the secrets that have helped others become rich.  Take the time to read this article so that you can become a success too.  It takes information, dedication, discipline, attitude and, of course hard work.  This is why we created this list of 15 Smart skills for Real Estate Investing.

Ask the Experts

Speak with a real estate expert to help you with your plan and see whether or not there are gaps in your plan and long-term strategy.  This will help you to get a good idea of where you stand and what you need to do to accomplish your goals.  They may tear the plan apart and give you an alternative course instead.

When you are investing in real estate, make sure not to get emotionally attached to the properties.  Take it from my experience flipping houses, you are strictly trying to turn the property for the most profit possible; try to put all your efforts into the renovation of the home that you purchase and maximizing value in the future.  This will help you to generate your greatest amount of profit.

Online Sources

One way to build your real estate investment buyers list is with online ads.  For example, you could use:

  • Social media.
  • Online Classified sites. 
  • CraigsList.
  • Local newspaper 

You can use local ads to draw attention to the properties you have on offer.  Be sure to retain contact information for every person who shows interest so you will have a well-rounded contact list as you accrue new properties.   The potential client list is an important part of your sales strategy.  This client list can also become a source for potential sellers.

Bargain Hunter

Search the market for foreclosures, as these can gross you the most income during your investing.  These properties will be listed below the market value of the home, as you can get some great deals to turn a profit with.  There will be a bidding war, but if you win you could be sitting on a gold mine.  Check this great article for more tips on buying foreclosures: https://www.thebalance.com/what-is-a-foreclosure-1798185

When investing in real estate you should always remember the cost of expenses, such as property inspections and repairs, when projecting your profits.  When planning on putting up the property for sale, you’re thinking about any repairs before this happens.  If you plan to rent it out, set aside a maintenance budget, as well.  Set aside some money for the renovations that you will have to make.

Banking and Funding

Make sure that you have all of your finances in order so that you can jump on opportunities where time is crucial.  You could lose out on the deal of lifetime if you wait until you find a property and THEN try to get loans and financing in order.  Having the ability to act quickly often is the difference between a deal of a lifetime and an opportunity lost.

Personal Development

Be open to making sacrifices. A lot of time goes into real estate investments.  Because of this, you may have to let go of some of your hobbies that eat up your spare time, and you should be willing to do this if you want to succeed.  When you achieve what you desire, you can go back to these activities.

Stick with the same type of real estate if you are just starting out as an investor.  While certain properties and prices may look good, you will be more successful if you develop expertise in one sector first.  Become familiar with regulations, renovation prices, what lenders are looking for and other relevant details and build your investment skills from there.   This is just one of the 15 Smart Skills for Real Estate Investing.

Books

You want to be educated concerning real estate investments before you begin.  This is something you must do because there are a lot of tips about business that are out there.  Buy educational DVDs, check out books from the library, and learn everything you can so you are in a great place before you begin.

Don’t jump into real estate investment without the knowledge and attitude required to follow through.  Get to know others who are in the business and learn from their experience.  Join real estate clubs.  Read books and visit websites that offer tips and information on real estate investing.  Don’t invest until you really know what you are doing.

Learn as much as you can before making your first investment.  There are a ton of books available on real estate investing.  Plus, there are many online (and offline) communities out there where real estate investors share their best practices.  The more you learn, the better chance that you won’t make any critical errors.

If you’ve lost money on an investment, take the time afterwards to understand why it happened.  Look at your books and see where you went over-budget.  Think about the things that you could have done differently to keep the numbers in check.  Since big money is involved here, you need to learn as much as you can from your own mistakes.

Websites

Go online and look for investment resources from reputable investment firms.  Their websites usually have helpful information about basic investment strategies.  This can help you start thinking about what is right for you.  When you get information from established institutions, you can feel more assured that their advice is reliable.  Have you thought of joining a real estate investment club?  Here is a great place to get started. https://www.revnyou.com/real-estate-investing-clubs/

Buying the Home

Buying a home or other piece of real estate will be one of the most significant decisions of your life, so it’s vital that you go into this process with a solid understanding of what is involved.  This part of our article will lay out the basics and give you good advice on how to proceed. 

To invest in real estate one must avoid potential costly upgrades, pay attention to the heating or plumbing when visiting a house.  Look at the ceilings and floors to detect any leaks.  Ask the owners to turn the heat on so you can see if the furnace functions well.  If anything looks old, prepare yourself for replacing it.  Ask who built the house and then do some research if there were lawsuits or consumer complaints.

When you buy a home with the intent of making repairs or doing a major renovation, always overestimate the cost of the repairs. This ensures that you will budget enough money for the true cost, as well as leave you with an allowance should something go wrong during the repairs.

Continue reading the rest of the 15 Smart Skills for Real Estate Investing.

Agents

When buying a home make sure to find a realtor that specializes in working with flipping houses or renting the home.  Avoid real estate agents that are in fact the seller’s agent and are trying to sell the home for the current owner.  Often in this case, the Agent’s primary goal is to help the seller.  Find someone who will focus on helping you and you’ll get a better selection of homes to start looking at and in the end, better negotiations on your behalf.

Location Research

When looking to purchase your next home, check out a few Open Houses.  Open Houses can provide you with a great opportunity to see what is available in a neighborhood, view different floor plans, meet real estate agents, and get decorating or upgrading ideas.  Open House listings are readily available in the local Sunday paper.

If you are considering the purchase of a house, check the neighborhood out through the online sex offender registry to ensure there are none located nearby.  Although sex offender registries are available to the public, real estate agents are under no obligation to disclose information to potential buyers about registered sex offenders in the neighborhood.  It is important that you take responsibility for your own research.

Location

15 Smarts Skills for Real Estate Investing

Consider moving to a new location.  Parts of the country are more expensive to live than others.  If you live in a particularly costly location, consider moving to someplace that has a lower cost of living.  You will get more bang for your buck and be more financially secure in the future.

One of the biggest mistakes people make when they purchase a home is failing to do their homework on the surrounding neighborhood.  Research the school district, taxes, location of sex offenders, and crime rates. Gathering this information may be time-consuming, but it can help you to avoid nasty surprises.  You might also consider attending a community meeting, which can give you additional insight into local people, places, and issues.

When buying a new home, consider Feng Shui principles for tips to ensure happiness in your new abode.  There are many houses to choose from in this down market and you can take advantage of this.  Avoid a house facing north, as this location receives the least sun and therefore the least energy.  A house facing south gets the most sun and therefore it attracts lots of energy.

Renting the Property

When purchasing a house that you intend to rent out, be sure to consider the safety of the home.  While safety is important in your personal dwelling, you are unlikely to sue yourself in the event of an accident.  Especially if you are renting to an older adult, be careful of pitfalls such as shallow staircases, driveways or sidewalks prone to icing, and other potential dangers.

Get an Inspection

Insure that your prospective property is in livable condition.  There are many hidden dangers that can be present in homes that have not been maintained properly.  Make sure that the inspection of the property is by a trained professional that will look for these potential problems.  If possible, walk through with the inspector and learn anything you can about what to look for in the future.

Commissions

Don’t be caught off guard by hidden fees.  Ask your Realtor upfront for an estimate of what the closing costs will be.  Items like commissions, attorney fees and homeowner association fees should be disclosed upfront.  Review the settlement and all the terms before you are ready to close.

Smarts Skills for Real Estate Investing

Financing

If you are looking to buy a home, and your main source of income is from commissions earned, avoid changing employers before you buy the home.  In the eyes of the mortgage lender, a change in your employer in a commission-based job creates uncertainty about your future earning potential.  That is because you have no track record at your new employer and your earnings are not guaranteed.  This can adversely affect your qualifications for a loan.

If you’re an experienced investor, consider “for sale by owner” properties.  For sale by owner properties often present an excellent investment opportunity for investors who are familiar with the purchase process, and who would prefer to save on agent commissions.  There are many different ways to structure a FSBO deal; it’s a matter of finding the one that works best for you.

Making Money

Have realistic expectations.  If you are new to real estate investing, you need to be very realistic about your earning expectations.  For example, it is unlikely that a profit over and above the mortgage and tax payments will remain in the owner’s pocket for very long. Instead, the property will require maintenance and repairs.  Therefore, do not expect to start making money overnight with a rental property.  With a property that the owner intends to flip, the profit will be realized as soon as the property sells.

You don’t have to let the idea of becoming a property owner intimidate you.  While the process may seem opaque and confusing at first, some basic education can clear up much of your confusion.  By applying the ideas you’ve learned in this article, buying real estate can be a painless and rewarding process.

And the Wrap Up

It does not require a great deal of money to begin investing in several types of ventures.  The tips and tricks you just read were designed to help the average person learn more about investing.  Bookmark this page and refer back to it whenever you need to for financial success.  Always keep up with the new trends and techniques in investing.  You can’t afford to get left behind.  Read newspaper articles, investment websites, and magazines if you want to stay current on information.  Staying on top of the investment world is the best way to make wise choices with your money.  Thank you for joining us for these 15 Smart Skills for Real Estate Investing.  Please recommend this article to others you know who are thinking about investing in real estate.

 

At 5AM Podcast we are here to give you the best information we have on personal and business growth.  Please make sure to share this post to help us grow 5AM Podcast.

 

Thank you for visiting 5AM Podcast today.  If you liked this article, please subscribe to 5am Podcast for news and updates on the right side bar.  Or if you’d like to contribute to our buy me a coffee fund which helps us produce content the link is below.  We truly appreciate your support.

 

https://www.buymeacoffee.com/5ampodcast

 

You can also find us on InstagramTwitterFacebook for our latest posts.