10 Pieces of Advice Everyone Needs to Know About Real Estate Investing
Real estate investing can be a complex market. There is so much to learn about this field, whether you are a seasoned vet or brand new to real estate investing. While most insight comes from experience, there are still an important pieces of advice that everyone should know about real estate investing, no matter where they are in their career. While we could literally list hundreds for you, here are 20 of our favorite suggestions about real estate investing.
- You need a team. Real estate investing is a team effort, you need other professionals on your side.
- Do your due diligence. The more information that you have, the better. The more information you can get and confirm about an investment, the better. This includes the history of the property, cost of utilities and potential for future income.
- Get your real estate license. Even if you have another realtor on your time, it is important to get your real estate license. It is a valuable asset and can only help you in this market.
- No one can fake it till they make it. This is not an industry for that. Don’t make an offer unless you can close on it. It will hurt your reputation.
- Put everything in writing. Absolutely everything you have from leases to notices need to be in writing and you need to have a copy of it.
- Master one investing strategy before moving on to the next. Do your best to stay focused. Master one strategy at a time instead of dabbling in several.
- Put emotions to the side. It can be easy to let emotions take hold when investing in real estate. Put them aside and look only at the facts. Emotions have no place in real estate investing.
- Pick someone else’s brain first. Take the time to sit down with someone else who invests in real estate to learn about their strategy and to pick their brain. Ask them as many questions as you can to get insight from someone who has done it before.
- Don’t cut corners with your repairs. You may be focused on pinching pennies and saving every dollar you can, but make sure that you don’t cut corners with your repairs or updates. Shortcuts are only going to end up costing you in the long run.
- Know the difference between passive and active income. If you have active income, it means you are working for your money. Passive income is about sitting back and letting your investment work for you. Know the difference, it will only help you as you create an investment strategy for your future.
Keep these facts in mind and remember that the more time you spend in the real estate market, the more you will end up learning about investing. In the meantime, keep these valuable pieces of advice in mind as you get started.