At least 30 billionaires in the United States made their money from real estate. Here are some tips to help you build an income from real estate.
Determine your goals
Are you investing in real estate as a way to supplement income, now or in retirement? Do you see your real estate income as a way to replace the traditional income source of full time employment? Will you want to be a hands on investor or a passive investor? Will there be partners involved in your investments or do you envision a solo investment strategy? Do you prefer to develop or purchase existing property, or are you open to both?
Do your homework
Take some classes, find reliable information from professional real estate groups or publications, or build a relationship with a successful real estate investor so you can learn as much as possible about the industry. Investigate trends in the market and the historical and projected performance of different types of real estate before you invest. The knowledge you gain from these resources will become the foundation for building your fortune.
Don’t be afraid to go against the grain
Highly profitable ventures are usually those nobody knows about yet – or opportunities you create yourself. Some of the most successful people in the business are those who think differently and are able to identify strategies, trends, and properties that are not yet widely recognized.
Have a plan
Are you looking for a project with a short turnaround or an investment that will yield the most profit? Do you want to rent or flip the property? Answer those types of questions and then put together a team of advisors and associates to help you find property that meets your demands.
You should also have an exit strategy in case your plan fails. If the market changes, you don’t want to be stuck with an unprofitable property.
Don’t use all your money in your first investment. Look at your initial investments as educational experiences when you learn to read contracts, develop relationships, and begin to understand the ins and outs of a good investment.
Contact the professionals at DRK to help you find the right property for your investment goals – our clients are our priority.