While being a real estate investor is no easy task, the financial return can be great. The rewards also transfer over into the community by providing housing for renters, or flipping a house will improve (improves) the overall aesthetics of a neighborhood.
Selecting the investment property is the biggest piece of the puzzle (we will cover this more in depth a little later on). Most people look into the opportunity of real estate investing because they seek financial security through their investments, and ultimately search for financial freedom. While this is a fully obtainable goal, it does take hard work to achieve. The time you a lot for your real estate investing business is completely up to you, since you are the entrepreneur. But you need to realize that it does take time, some real estate investors work 40-hour per week jobs and do real estate investing in addition to a regular job, so that they have a steady (and reliable) source of income. While other real estate investors make a full time job of it, whether it be from the beginning of their career or after they have established a little bit of income to help support themselves and their business. One of the best ways to begin in the real estate investing business is to identify a cash flow positive property (this is determined by the rent less the expenses which equal a positive cash flow that you can put in the bank).
The great thing about being a real estate investor is that you have the unique ability to define your own success based upon how much effort, time and money you invest. Wealth through real estate can be accomplished through achieving your investment goals. While not all real estate investments are created equal, it is important to complete your due diligence prior to making an offer and consequently a purchase. By implementing a successful real estate investment strategy you are purchasing a revenue-generating asset that has the potential for a high Return on Investment (ROI) when compared to other investment types available.
Before beginning on your real estate journey, ask yourself a couple of key questions…
1) Are you fully committed?
2) Do you have the financial capacity (or are you able to secure funding) to make real estate investing work?
3) Do you have the time it takes to invest in making the business a success?
4) Is your business plan and marketing strategy good enough?
5) Have you done your homework? Have you researched the real estate market, demographics, crime, property values and cost of improvements?
6) Do you have an entrance and exit plan in place for each property?
“Ninety percent of all millionaires become so through owning real estate.”