While cryptocurrencies, NFTs, Play-to-Earn business models, and many other trending digital assets have become the hot topic of investing and securing financial freedom, nothing beats the reliability and long-term appreciation provided by real estate investing. Plus, even if you’re more of a stocks guy that prefers analyzing share price and forecasts, there’s no denying that property management is the most accessible and safest way to diversify your portfolio.
However, even with more entrepreneurs and forward-thinking individuals setting their eyes on the lucrative real estate market, we’d like to warn all aspiring investors out there that money isn’t the only thing you’ll need to get your foot in the door. And, unlike other modern investment vehicles and instruments that can be viewed and learned from the comfort of a computer screen, expect the real estate property investment sectors to take a lot more than just reading the bottom line.
#1 A Few Videos Won’t Turn You Into A Tycoon
Firstly, we understand the influence and encouragement many young entrepreneurs and aspiring individuals receive from seeing the real estate portfolios shared online and the cash flows of successful investors managing upwards of a hundred properties and tenants. But, regardless of the number of hours you put into watching all these how-to videos and working through their spreadsheets, all this digital input won’t turn you into a tycoon anytime soon.
- Seek A Mentorship Program: Many investors abide by the principle of learning from your mistakes, but when it comes to real estate investing, you can’t really afford to constantly make mistakes when fixing up a duplex can easily sink a few thousand dollars. So, if you’re serious about learning the skills to make it in the market, we recommend seeking a mentorship program to learn the ropes of your preferred investment strategy. Plus, with home prices forecasted to drop by late 2022, it doesn’t hurt to get the perspective of more experienced investors in volatile market seasons.
- Build Essential Competencies: In addition to mentorship programs, you’ll also need the essential competencies to property management, effective house hunting, and communicating with your potential tenants and buyers. So, besides learning from seasoned veterans, we recommend getting your real estate agent license ASAP and furthering your knowledge with accredited workshops. Also, you’ll want to brush up on your negotiation and persuasion skills, so it’s a good idea to pick up a book or two as well.
#2 Concentrating On The People Aspect Too
Secondly, once you’ve got the bases covered in terms of general knowledge and understanding behind real estate investing and property management, you’ll want to shift your focus onto the people aspect of the market. You see, unlike other investment instruments that you can do well flying solo and dollar-cost averaging your gains and losses, connections play a huge role in becoming successful as a real estate investor. And once you factor in the costs of home services and generating leads, a robust network will play itself tenfold.
- Starting A Real Estate Network: We understand that not many people handle themselves well in social functions and professional activities, and considering that the market situation isn’t doing anyone favors, making a business network in today’s climate is non-negotiable. However, success as a real estate investor demands determination, so you’ll need to suck up those excuses and make a strong impression whenever possible.
- Finding People For Your Team: Apart from a network of people you can tap and contact for ventures and clients, you must also focus on building your core team of professionals. Remember, you can’t expect to become multi-faceted in every professional skill like finances and legal services, so take the time to connect with a professional accountant for your money matters and a legal team to handle transfers and process services.
#3 Understand The Market Before Diving Headfirst
Last but not least, after you’ve built a network and a reliable team to count on for other core functions in property management and real estate investing, your final goal before making that first purchase is understanding the current market and overall investing sentiment. The fundamentals driving home prices, shortages, and inflation rates can drastically disrupt how properties will fair in the future, and that goes double once you consider the specificity of your locale.
- Research On Fees And Investment Flow: If there’s one thing we can learn from over the past year now, it’s the sheer magnitude of change volatility can introduce to a market. And because we can’t quantify and account for how these changes will shape the future, it is in our best interests to research the things we can control and retain a good understanding of. For example, a good place to start would be taking note of the fees and taxes unique to your state and the flow of city development.
You Can’t Build A Real Estate Career Without The Tools!
Times are changing, and with weak jobs gains contrasted with a low unemployment rate report, there’s no telling what the future will hold for economic recovery and rebound. So, if you’re planning to test the waters and become a real estate investor as 2022 rolls around, don’t forget to prepare accordingly to increase your chances of success.