There a number of solid reasons why real estate business is so popular. Aside from the tempting statistics that shows that the majority of real estates consistently appreciates over time, real estate is a tangible form of investment. Being a real estate owners or a real estate agent is a pretty popular choice among those who are in the midst of switching careers because pretty much anyone can enter, without the bar of education or prior experiences. Real estate is also known to be a lower risk investment compared to other means of investing such as the stock market, as long as you have a comprehensive understanding of the business. So, what are the gist of things that you need to expect in diving into real estate?
Start small and Educate Yourself
Sure, you go into real estate expecting to make big, to do big. We can’t help but be attracted to big ideas; problem is, we don’t know how they’ve become big. Understanding the revolutionary process is difficult and most of what we can see is the result, not the process. We know once they’re already big. So start small, and grow. Rather than start big and collapse of burnout.
Starting small can mean many things according to each individual. For a lot of people, renting their own home is a good place to start. For others, it’s saving up just a bit more to pay in cash rather than relying on mortgage—identify what “starting small” is for you, then extract the first step. Go from there.
There are plenty of ways to educate yourself in real estate, and no two methods are the same. Do what you can continuously, consistently commit to. There is no point in learning if you just learn that one time and it doesn’t continue.
Many successful real estate people are those who already own a house—at least one that they live in—and they start from there. You can rent your house while you move into a new one. Another popular method for home owners is renting a part of their house while preserving one room for themselves. Whichever you chose, understand the pros and cons of each option, and identify which one is suitable for you. For example, even though renting parts of your room might be the option that saves you more money, if you’re not into the the idea of living with your tenants, you might want to take a step back and reconsider for a bit. You might change your mind, but remember the point in starting small is identifying where you’re comfortable and capable in starting.
When it comes to acquiring properties, paying in cash is definitely the preferable method for those who have it. It’s not necessary, but If you have the means, buy a house with cash rather than relying on a mortgage. The elimination of mortgage payment makes a huge difference, thus, easier in generating a positive cashflow.
Depending on the condition of the home when you buy it, you might want to make some repairs or even renovations. Make some connections and establish good relationships with people who can help you in these areas. Having reliable people who give the service you can trust takes off so much burden.
Join a Community.
Learn from the people who have been in the business for longer than you. Meet with newbies who might be facing the same struggle as you. Share what you’ve gained through the chunks of time you’ve spent in the real estate business. Network. Network, network, network. Then network some more. There’s no such a thing as too much networking. Joining a community is a part of educating yourself in real estate. Set aside a chunk of your time simply for meeting people, it’s an investment on its own. Don’t be afraid to be a student and (literally or figuratively) take notes.
The Best Way to Learn? Do It
Learning by doing has always been the most practical way—you don’t simply learn of secondhand information—you learn through the things you experience yourself. Real estate is no exception.