The average person doesn’t know how to get started investing in real estate, and therefore, gets their cash flow from a nine to five job. That scenario is the exact opposite of being financially free, because cash flow doesn’t come from depending on a job you have to go to everyday in order to get paid. Financial freedom happens through investing in things that make money for you.
Now, real estate investing may look like risky business to some, and that’s true, because it definitely can be. But just about anyone who works smart enough, and hard enough, can use real estate investing as a way to increase their wealth. Many people ask why they should invest their money in real estate. I say because future retirement based on cash flow from a rental property isn’t a dream, it’s a real-life possibility.
So here are a few of the keys, from a much larger list, to investing in real estate:
- Pick Moderately Priced Properties. Keep in mind that expensive homes in sought after areas like the oceanfront usually have low cash flow returns. You’d be better off investing in a more moderately priced property with a higher cash return.
- Know the Neighborhood. Don’t buy a property in an area you’re not familiar with. Know the history of the neighborhood, and do your research. Find out how the schools rank, what the crime statistics are, and if there is any noise or air pollution that could affect your ability to rent out the property.
- Choose One Investing Strategy, and Master It. Some people get caught up and lose focus, and in their defense, it’s easy to get distracted. But if you want to be a successful real estate investor, don’t give in to the temptation of dabbling in a bunch of a different strategies when you’re just getting started. Focus on one investing strategy, master it, and then you can try out something new.
- Learn from the Experts If you’re looking at getting started with real estate investing, reach out to the experts in your community. Join a real estate investing club and reach out to experts online. Invite a local broker to lunch and pick their brain for ideas on your tab. If you want to be successful with real estate investing, surround yourself with successful real estate investors. Also, constantly read new real estate books, blogs, and eBooks about smart real estate investing strategies.