4 Real Estate Investment Tips for Beginners

Investing in real estate can be a very stressful process for beginners, especially if you are trying to find the “perfect” investment property. In fact, the perfect property does not exist but there are some ways you can make the entire process easier and make yourself feel more confident with your purchase.  There are millions of real estate properties on the market. That being said, being conscious of the niche market which you are looking to invest in will help you find what works best for you and your potential clients.

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The real estate market is not as scary as it may seem, by educating yourself and making sure you analyze the market on a daily basis will allow you to be confident in your decision making while searching for deals. The more you get comfortable with the process and understanding the market, the better you will become!

1.    Identify your niche

Before jumping into any deal, make sure you identify your niche as this is what is going to set you apart from other investors. By choosing a specific niche, you will be able to become an expert in that specific area and you will be able to better understand that market and offer greater value to your clients. 

 In order to choose your niche, you must look into the local demographics trends and analyze your findings in order to better understand the opportunities presented to you. In addition, it is very important to find exactly what made you invest in real estate in the first place. What you are passionate about? What do you love about real estate? Turning this into your niche will make the entire process much easier and much more motivating. That being said, you have a better chance of finding great real estate investment opportunities and, in turn, increase the return on these investment properties. 

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2.    Analyze each property

As a new investor, there are a few things you should consider before buying your first investment property that you might not have thought about. Here are a few things to consider…

Neighborhood: This will determine the type of tenants you will attract. Some of the important things to take into account are the schools and amenities close-by, the average age of residents and crime rate , to name a few.

Property taxes: These need to be paid every year so don't forget about them!

Future developments: It's very important to consider what the city plans for future developments in that area as this could potentially increase the value of your property and indicate future demand for the property.

Average rental income: Evaluate the competitive markets that surrounds you and calculate the average rental income as well as the overall demand for the neighbourhood in question.

Head over to the about page for more things to consider...

3.    Finding deals on MLS 

 When looking for deals on the market, try being the first or the last. Let me explain a little more:

Being the first...

By being the first buyer, you will be able to lower and avoid competition, bidding wards and avoid uneducated competitors. To be the first, make sure you are pre-approved by the bank as this will make the buying process much quicker.  In addition, create automatic alerts so that you are always the first person to see new listings that fit your list of criteria's.

Being the last...

 If you’re being the last, you are looking for investment properties that are struggling to find the right buyer. The individuals selling these types of properties are often very stressed, just want to get rid of their home and might be willing to give it up more easily. In order to find these properties, look for re-listed houses, deals that fell through that are back on the market, expired listings, and the amount of days the property has been on the market.

4.    Network and create connections

 Networking, networking, networking… How many times have you been told how important this is in life? Let me tell you once again, building a network and creating connections is one of the most important things you can do in order to advance your business. This is extremely important for real estate investors as it will determine which deals you will be able to get, how much it will cost you and how quickly you will be able to get your hands on these properties. Get yourself involved in your community’s events, attend seminars and conferences and try to find networking events that will allow you to build those very important connections!

In short...

Starting as a real estate investor can be scary, however, by getting educated and finding tips and tricks will help you to find what works for you. These are just a few of many that will help you kick start your journey. So are you ready to start building your wealth and create passive income through real estate? Let's do it together! If you have any questions or want to chat, to not hesitate to contact me!