Real-Estate Investment may sound like a fancy sophisticated financial term for the wealthy smart geeks. You can even think to become a real estate investor. You should be a shark and big short as Donald Trump. A very wealthy dude or female with a lot of capital on hand to operate your business.
If you thought like that in the past is time for your shift your paradigm. Open your horizon toward a Real-Estate Investment career. Because this article will provide some key information to leverage money and build capital like a real estate investor.
Before everything let me share with you some important facts about the Real-Estate Investment field. “The real estate industry is a big business generating billions of dollars in revenue every year. Real-Estate Investment offers ample opportunities for entrepreneurs to start a business from scratch.
Last year 210,000 companies operating in the residential generated $200 billion in revenue; 35,000 companies operating commercial Real-Estate Investment $35 billion in revenue.”
What is the margin for business for real estate investor beginners in this arena? “28.1 Million Real Estate Investors operating now on the Market. According to a survey, they only doing deals on only 39 percent housing market. Those Real Estate Investors only spend $9.2 Billion a Year. To doing business such buy repair, and flipping housing in the bad neighborhood doing stabilization program”.
The breakthrough for you. Let me inform you in this country today $ 200 billion revenue generated per year by real estate. The housing market is one more time booming with endless opportunities. In which real estate investors are only leveraging $9.2 billion annual revenue.
Just do the math $ 190.8 billions marge of revenue every available for a new hustler. Those who want to step-up new Real-Estate Investment business venture to jump into the market, succeed and become rich.
When he or she is considering an active investor. This individual may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. Nevertheless, a passive investor can do the same thing with an active one. The difference he or she might hire a real estate team to find and manage an investment property for them.
Regardless if it’s passive or an active investor. The person who chooses Real-Estate Investment as a business model. Certainly choose it for some several reasons such as cash flow, capital appreciation, depreciation, tax benefits, and leverage.
Understand the different category of Real-Estate Investment deals?
The key element to know when deciding to start a Real-Estate Investment career. Is what kind of investor you want to be? Real estate investing is also diversified that there are many options you can pick. There is a different type of Real-Estate Investment business venture, every single come with its pros and cons. It is important for you to understand what you want. In order to determine which one fits with your investment and financial goals. Let’s see together how they look one by one:
Rental Properties Investor:
This is the classic and the most common field real estate investor beginner and novice in the game. A rental property investor is a process as an entrepreneur. You simply buy a house and rent it out to generate cash flow. Keep in mind there are various option to make money with rental properties. Whether you keep it for long-term rentals which are the classic landlord-tenant option. The other one is a short-term rental such as timeshare rental or guest house type Airbnb rental.
House Flipper Real Estate Investor:
To become a houses flipper investor. You will invest your money in buying houses. You can fix them if you want to. A and put back in the market for sale to make a profit on it. This level of real estate investment is not easy because you have to find deals. Then after financing them, hiring contractors to do the rehab, and managing the expenses. It’s recommended that you start this level after a few wholesale deals.
Wholesaler Real Estate Investor:
A wholesaler investor job is to find a real estate motivated seller, gets the house under contract, and assigns the contract to an end-buyer. As the middle guy, you don’t need to spend a lot of money to get those deals done. This strategy also comes with challenges you should pay a close attention to what you are doing.
Commercial Real Estate Investor:
A commercial real estate investor is investing money in leasing investment properties for businesses. The kind of commercial real estate spot for business purpose, shopping centers, office buildings, retail shops, multi-family apartment building, warehouses, storage building facilities.
Real Estate Investment Trusts:
These are companies that pool money from investors to buy and manage large investment properties like hospitals and skyscrapers. The investors, in turn, receive a passive income in the form of dividends and they have minimal responsibilities.
Should I Be a Full-Time or Part-Time Real Estate Investor?
When you’re considering a career in real estate investing, you should also consider how much time you have to devote to your business. Obviously, the more time you can devote to your real estate investing business, the better your results. If you have a 9-5 job, this leaves you with a few hours a week for managing your investment, which will ultimately affect which investment strategy is the best for you.
For example, you might be interested in buying rental properties to generate passive income. However, this type of real estate investing requires you to put a ton of time and energy for marketing, managing, finding tenants, collecting monthly rent, etc. So, if you’re thinking of a career as a full-time real estate investor, this should be a good strategy to start a real estate investing business.
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On the other hand, if you don’t have the time, it’s best to choose a different investment strategy and become a part-time real estate investor. For instance, part-time property investors have better chances of generating passive income from REITs because these don’t require them to worry about managing the investment, handling repairs, or attending to tenants.
How Much Money Do I Need to Invest in Real Estate?
Financing investment properties is a major concern for beginner property investors. When deciding if real estate investing is the right career path for you, another thing to consider is how much money you need to start. While there is no universal amount, it can take a lot of cash to buy investment properties and flip houses. So, ask yourself “how much can I afford to invest?”
Nonetheless, property investors have a number of options to start real estate investing with less money down by taking a loan. Conventional mortgage loans are the most common in the real estate investing business for beginner property investors. Other financing methods are hard money loans, private money loans, and owner financing. Work on understanding what is required of you to obtain these loans and how much you need to borrow.