How to Become a Real Estate Investor
A recent study on investment statistics highlighted that approximately 19.9 million rental properties exist in the U.S.
Everybody needs a place to live, which is what encourages people to invest in real estate, it is viewed as a safer investment than stocks, and with a seemingly everflowing demand, it is an excellent investment.
There are many factors that contribute to each decision an investor makes. Let’s discuss some of them and other significant factors you must consider when understanding how to become a real estate investor.
What is a Real Estate Investor?
Before understanding the importance of this profession and the benefits that come with it, the first thing you need to understand is what a real estate investor is.
Simply speaking, any person who invests some capital into a property is known as a real estate investor. However, there is a little more to that.
The primary responsibility of a successful real estate investor is to manipulate the valuation of the properties they have invested in, to their advantage and collect rent from their tenants as well as increasing their equity in the property.
A real estate investor does not necessarily have to be associated with an established real estate association to be considered an investor. There are people who work in this profession alone, and there are investors who have partners as well.
3 Easy Ways How to Become a Real Estate Investor
When starting out as a real estate investor, there are many possible routes you may take. However, they all have varying difficulties.
There are paths to becoming a real estate investor, which are relatively simple, and in order to take that path, there are several strategies that you must keep in mind to ensure the best start to your real estate investing career.
Get a Real Estate Investing Mentor
There are many aspects of the real estate market which require experience and skill rather than theoretical knowledge.
And who better to learn the inner workings of real estate from than real estate veterans who are active across a broad spectrum of real estate and can offer you the inside scoop on many of the properties listed in the market.
These real estate mentors are experienced advisors who act as trainers due to the impressive amount of experience they have under their belt.
These mentors can provide you with the proper guidance you need when handling many aspects of real estate investing, such as handling negotiations and navigating through a number of different situations faced in the field.
One noteworthy benefit to having a real estate mentor is that not only will they provide you with inside information, but they will also help you with networking, and introducing you to valuable contacts in the business.
Here at BPM REIA, we offer a wide range of coaching and mentoring courses to help build you into the best RE investor you can be. We believe so strongly in our students that we even front 100% of the cost for our student's deals.
This helps them get on their feet and get practical knowledge through the investing process that can be almost impossible to obtain in any other way. In our coaching program, we go through everything you need to know. Such as how to run a real estate business, build your portfolio, minimize risks, raise money, and anything else you can think of to shape you into the investor you want to become.
Get Into Wholesaling
Another way to get into real estate investing is to get in wholesaling. Before diving into the world of wholesaling, let us understand what this actually means.
Wholesaling is a widely known practice in the world of real estate, and it allows potential investors to earn a large amount of commission without the need for any license or risk of financial loss.
This is just the tip of the iceberg, as there are many other benefits which are associated with wholesale as well.
When dealing with wholesaling, and if done right, the sky is the limit when it comes to commissions and profits. A notable factor when wholesaling is that it is dependent on your persuasion ability, and the more investors who agree to your price, the higher your profit will be.
This is just one type of real estate investing, it helps you understand real estate markets and learn about risks, but it comes with short-term profits unlike traditional real estate investing. Here is a short guide on how to get into wholesale real estate.
- Research your local market
- Make a buyer’s list from the information you have gathered
- Secure a stable source of finance.
- Begin searching for potential properties for wholesaling
- Determine whether to sell the contract or work towards a double closing.
Become a Real Estate Agent
When understanding how to become a real estate agent, there are a number of different theoretical factors you must keep into account.
However, this is one of the very few industries which require hands-on experience in order to become proficient.
No matter how much research you do, it will not amount to anything if you do not step into the field and get hands-on experience for yourself.
The best real estate investors in the market, are the ones who stepped into the field, and learned by experience.
Becoming an agent first helps you realize that in this occupation failure is a norm, and it is okay to fail. It will help you overcome problems and better assist you in understanding how you can learn from them to avoid mistakes in the future and become a better investor.
Is Real Estate Investing Worth it?
This is one industry that does not have any long-term disadvantages and is relatively unaffected by the recession as well, making it a very lucrative opportunity to earn money and gain a foothold in the housing market.
Additionally, there are many other advantages associated with real estate investment, which include a steady cash flow, long-term financial security, and the capability to have a passive income stream in the future.
However, the entire process may become too complex, and it might overwhelm you at some point. Not to worry, as you are not alone.
There are many other people who either wish to get into real estate investing but are too intimidated by it, or investors who are facing a wall and think they can improve.
We have a group of mentors to help you learn all about real estate investing and lead you in becoming a successful investor. We will help you become a master negotiator and offer you private mentoring to make real estate investment simple so you too can achieve financial freedom.