How To Invest In Real Estate (Successfully)!

Getting into real estate investing is an excellent way to build long-term wealth, but it’s not something to jump into lightly! Whether you’re a first-time investor or you’re ready to grow a bigger real estate portfolio, understanding best practices and expert strategies can get you where you want to be with fewer mistakes and losses along the way! 

We’ve put together some of our best insights to help new and seasoned investors get started the right way and build long-term success through real estate investments. Keep reading for insights into how to get into real estate investing and where to find the best properties in the ideal markets!

Why Choose Real Estate?

real estate investment concept on the gearwheels

Maybe you never thought of yourself as a landlord. Still, there are plenty of ways to benefit from owning real estate investments—and you probably already know plenty of people who generate passive income from these types of investments! 

From monthly rental property income to tax deductions or profits from flipping houses, owning property as an investment is one of the most stable ways to add income on top of your full-time job or if you’re considering leaving your career behind to become a full-time real estate investor!

How To Get Started On Your Real Estate Investing Career

Lawyer or businessman in office

If you’re looking for one of the best guides to getting a handle on property investment basics, you’ve come to the right place! One of the first things to consider when thinking about real estate is the type of investments you want to pursue. 

There are a variety of ways to build a successful portfolio, and it’s important to target the types of properties or strategies that make the most sense for your lifestyle and goals. Popular ways to capitalize on properties include:

  • Fix-and-flip investments

  • Rental Properties

  • Real estate wholesaling

Getting your hands on “real” properties is a great way to build wealth! However, investors need a strategy to get started buying properties, flipping and reselling after renovations, or finding good tenants to create consistent rental income.

Consider the Financial Benefits

Privy is a good way to start

To set the right approach for success, a real estate investor must consider the financial benefits and target the strategies to meet the benefits they prefer. For example, if you prefer long-term income on a consistent basis, rental properties could be the ideal option for you through buy-and-hold properties. However, if you enjoy the idea of buying homes, renovating properties, then reselling them to create more cash flow, a fix-and-flip strategy could be ideal for your goals and wealth-building strategy. 

Buying and selling properties is one way to go, but if managing real assets, dealing with tenants, or coming up with the capital to budget for renovations during fix-and-flip projects is more than you want to take on, there are other ways to invest in real estate! Many property investors choose less hands-on methods of getting into this industry, including real estate stocks or REITs (real estate investment trusts). These forms of investing allow you to buy shares of properties managed by other entities and then benefit from dividends—without managing properties on your own!

Gather the Information You Need for Success

Looking at Privy

Before jumping into your first property purchase or REIT investment, make sure you have the information and resources you need for success! Successful property investors must research what it takes to buy properties, maintain ongoing expenses, find properties in their target markets (and make sound investment decisions), or find renters and manage rental properties to generate income and avoid legal issues. 

Take time to map out a few considerations, including:

  • Your goals

  • Market conditions

  • Property conditions (for buy-and-hold or fix-and-flip investments)

  • Your budget to get started

  • The potential return on investment

It’s easy to get excited about the income possibilities when learning how to start real estate investing, but you’ll benefit more from tackling some research and making a plan before jumping in headfirst. New investors with a solid plan can target the best properties in the best markets, make good deals, and have the funding they need to invest long-term. In some cases, getting creative can help you find the financing you need or think outside the box to put together the right mix of properties, strategies, and success!

Build Your Knowledge With Books and Courses

So, where can new (or experienced) real estate investors find good information to research and build a plan for success? You won’t have to look hard to find good real estate investing courses or the best books on real estate investing! 

Choose Reputable Online Courses

Sometimes the best advice comes from tried and true publications and online courses that are easily accessible, no matter where you fall in your real estate investing journey. New investors can benefit from reputable books to learn about the industry and find out about some of the strategies and property options mentioned above. 

However, when looking for an online or interactive course, it’s critical to do your due diligence. While there are plenty of well-respected courses led by industry experts, there are also many courses that can leave you without the knowledge you need (or worse), information that can lead you down the wrong path. 

To benefit from an excellent online course, there’s no need to overspend on a high-priced option that doesn’t deliver what you need or leaves you with actionable takeaways. One of the many benefits of learning real estate investing strategies online is that you can take a class at your own pace and benefit from leaders in the industry from your home! In addition to online courses, many experienced investors also recommend on-site learning opportunities like conferences that make sense for your budget and goals. 

Check Out Plenty of Books, Too!

Even if you’re not a big reader, reading a few good books about successful real estate investing strategies can support a lengthy career as an investor! Much like choosing online courses, do plenty of research when choosing books to build your knowledge base. Look for resources from respected industry leaders who have proven success in the areas you want to focus your real estate investment strategies. 

Consider reaching out to other investors to get insights into good books and courses to add to your library. If you’re developing a relationship with a mentor, they probably have some good ideas about where to find the best training and information as you launch your property investing career.

Find Your Market (and Have Fun)!

With a good plan and an introduction to solid strategies and information, you’re ready to start investing! However, before buying your first property, make sure you evaluate potential markets and make smart property purchasing decisions with each new property added to your portfolio. 

It’s easier to start and continue a successful real estate investment career when making good deals on income-producing properties! On the other hand, trying to make a sinking ship work out to meet your financial expectations (even if you paid a low price for a property) can often leave you without the returns you need and a frustrating project along the way. 

Investing in real estate should be fun (while you make money)! However, property investors must avoid the temptation to buy “too” low or without the right insights into a market—just for the sake of getting started with a first property purchase. 

Don’t let your careful research and time spent reading and learning about how to succeed as a residential real estate investor go to waste! With a resource like Privy, investors have insights into market data from across the country to make smart buying decisions to start and build real estate portfolios. In many cases, choosing a long-distance market outside of your hometown can have the most significant impact on your success!

While geography can be a challenge, choosing good properties is critical to meeting long-term goals! As you build a portfolio in markets outside of your hometown or without easy access to keep an eye on your properties, build a support team in those markets to manage rental properties, oversee fix-and-flip renovations, and represent your interests as an investor. 

Success as a real estate investor requires the right combination of knowledge, strategy, patience, resources, and excellent investment properties. However, you don’t have to put all of that together on your own!


Ready to Invest like a Pro?

Get started today with an industry-leading software tool that will change how you invest.
Privy simplifies the process. It is the only real estate investment software that uses “Investing Data Education” from live market events, investor activity, and strategies to prove the best areas to invest for every type of real estate investor.