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4 Top Surprising Tips for Beginner Real Estate Investors to Build Wealth
Real estate investing is a trending topic as the market continues to increase in value. There are many new real estate investors joining the trend. While many sites will tell you the same basics to investing, I’ve compiled a hot list of some surprising tips for beginner real estate investors, or for those just wanting to up their game.
So, let’s jump in with some hidden gems in the real estate game.
Tips for Beginner Real Estate Investors
Tap into Word-of-Mouth Markets
Successful real estate investors often find a path into obscure corners of the market– both in customers and suppliers. The housing market has multiple hidden sectors that can help you buy your properties at a significant discount.
One area to watch is rumors of motivated and/or distressed sellers. For example, someone may need to sell their aging mother’s home quickly. Or a family going through a divorce that needs to split the assets ASAP. These homes are much more likely to be in good condition than a foreclosure, and you might be able to negotiate a deal before the home even lists.
Get the Best ROI, Not the Best Property
Real estate investing is a business, meaning focusing on a specific niche will likely get you consistent results the fastest. This is one of the biggest tips for beginners. So don’t get caught up in buying the best property possible. Instead, focus on getting the best property for your target demographic and neighborhood.
For example, if you are focusing on building up rental properties for singles in the city, you should keep your focus on smaller units even if you come across a great single family home. Then, you can keep yourself from over investing in properties outside your marketing efforts or property management system.
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Avoid a DIY Mindset
DIY home flipping shows on HGTV have attracted many– but it’s a risky route. New real estate investors should avoid a DIY mindset for a long-term view of predictable income from real estate investing. Plan to outsource maintenance, keep renovations small, and even hire out property management as soon as you can.
As a real estate investor, your time should be used to focus on keeping properties functional, rentable, and income-generating. Spending time doing the maintenance is not as useful as spending time looking for other properties to invest in. Keep a balance for both.
Develop Multiple Exit Strategies
The current hot market may lure some to believe they can simply sell low-performing rental properties. However, this may not always be the case. Regardless, there may come a time where you want to unload a less profitable property, or maybe want to change strategy. You may want to liquidate some of them, to have the funds to invest in a larger project.
There is a long list of scenarios where you’d need a quick sell or exit; a traditional listing may not cut it. Therefore, even in the hottest market, a savvy real estate investor will always keep multiple doors open to drop undesirable investment properties.
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As a first-generation Mexican immigrant, I know the Latinx community’s unique financial challenges. As an undocumented immigrant at eight years old, I’ve since gained citizenship, served in the US Navy, and built a real estate portfolio earning over $50,000 a year in passive income.
If you want to take advantage of the US economy and build generational wealth para la familia, then follow me, Violeta Sandoval, at MoneyChisme!
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