Updated March 7, 2022
Are you looking to expand your real estate empire? While buying homes is the first step to building wealth through real estate, it’s nice to have some fun along the way. Here are some tips to help you develop your real estate strategies while having a great time doing so.
As an investor, opportunities to expand your portfolio should always be welcomed. One way to make this happen is to look at the real estate market as a viable option for long-term investments. Not only does this help in the long run through renting buy-and-hold properties (if that’s your investment preference), but it also gives you tax advantages. So by adding this diversification to your portfolio, you’re not only benefiting from adding a different element to your real estate investing strategy, but the financial benefit can be reasonably immediate.
When you start as an investor, three essential real estate investing strategies can lead to long-term success. These steps are: finding the deals, making money, and having fun. If you can succeed at executing on this, more real estate investment success will surely find you!
Find the Best Deals
Looking for deals can be difficult when you first start learning how to create wealth investing in real estate. A significant element of success in real estate is networking, so establishing that network can take a while.
One of the things investors can do to fast-track their networking is to go to investing clubs and networking events. At these types of venues, you’ll find like-minded people that are all looking for the same thing you are: an opportunity to make more money in real estate. These are the types of people who will be in your corner because they want you to have the same success as what they want. They’re also well-connected and can be valuable resources as you build your real estate portfolio.
Another easy way to start finding deals is to identify pre-foreclosure properties. According to Rocket Mortgage, a foreclosure occurs when a home is seized and put up for sale by the lender. When a property goes into foreclosure, it’s typically because the owner could not pay their mortgage. As a result, the bank repossesses the property and puts it into foreclosure. The benefit of being aware of these properties is that they are relatively cheap when the property’s condition is not as good as it once was. However, foreclosed properties often need significant work to sell as a fix-and-flip or use as a rental property. The work can range from changing a few light bulbs to installing all-new appliances and fixtures. Although this may dissuade you, the overall profit can be highly rewarding, especially if you use good connections gained through your networking groups!
You might still be asking: where are the properties that fit my goals? Finding the right foreclosures and other excellent deals is easier with Privy. Privy gives you access to real estate investing strategies, deals, and data that can help you improve your real estate investing with the best deals in multiple markets. Instead of struggling through the growing pains of making investing mistakes with bad properties, Privy can help point you in the right direction with deals that fit your specific criteria. Our algorithm provides investors with up-to-date statistics, along with finding similar properties to others in your portfolio. The Privy Advantage makes it simple for new or seasoned investors to turn success into a habit instead of a struggle.
So now that you’ve found good properties for your first (or next) investments, it’s crucial to understand how your rental properties or fix-and-flips will make you money. Having a general knowledge of real estate will help you succeed more quickly. For example, some houses are sold ready to move in but are typically at market price. The market price is estimated to be the true value of the home. However, buying properties at the market price may not generate the returns you hope to see. The real deals are properties below market price, then sold at higher prices, or rented at competitive rental rates.
Although you’ll be saving money on low-priced homes when rental property investing, property owners still need to know how to balance the investment against the cost of repair for optimal returns. When buying a house to sell again, this is commonly known as house flipping.
Flipping can bring in significant profits if you’re willing to put in the work and manage budgets closely. Although you may fumble early on, once you’ve worked on a couple of properties and built relationships with reliable contractors, you’ll have a better understanding of the properties to target and how much to put into renovations to hit the sale price points you need.
Once you flip the house you’ve bought, you could also rent it out to generate monthly income. When renting, it’s essential to have a process in place to find good tenants, set the right rental rate, and keep properties well-maintained. Many investors operate rental properties with the help of a property management company to handle these details and maximize returns.
As you decide how you want to invest in real estate and how you plan to make money, connect with professionals in the industry to help guide your success. Especially if you’re new when it comes to a real estate investment, veterans in the real estate business may have real estate investing strategies to help you avoid mistakes and fast-track success.
Now comes the exciting part of the job. Creative real estate investing should be fun! However, most real estate investors can tell you that without taking note of the best ways to have fun, the stress of building a successful portfolio can win out.
So, what’s fun about real estate investments? Investors can enjoy:
Solving problems for potential home buyers or renters
Experiencing something different and new every day, from showing a home to
finding your next deal waiting in your inbox|
Designing and renovating homes to meet changing trends
Meeting new people
Watching long-term income grow!
Making money should be fun! While many full-time jobs involve the same daily routines, real estate is fast-paced and exciting. While there is a risk, it’s something that an active real estate investor must learn how to balance. Once you do, real estate investing becomes a rewarding way to provide housing and create your own financial freedom or fund retirement.
Find Your Best Real Estate Investing Deals With the Privy Advantage!
Although first getting into real estate might be difficult, it’s worthwhile in the long run. Of course, growing pains are sure to be had, but if you keep an eye on your investments and apply the best real estate investing strategies, you’ll not only make money, you’ll also have fun doing it.
If you’re looking to get started in the real estate investing game, start well with Privy! With our software and algorithm, we make it easy to find excellent deals to build your portfolio, make money, and have fun along the way. Reach out soon to learn how the Privy Advantage can help!
Learn more expert insights about real estate investments! Download a free copy of “How to Invest In Real Estate: A Guide!”