5 Tips For Turning Real Estate Investing Into A Real Fortune

When you think about long-term investment, real estate is an option that naturally comes to mind. However, real estate investment is usually quite a tough task and requires a lot of time, effort, and money to become lucrative. There might be several courses, coaches, and even software out there that claim to help out in this particular investment aspect but they rarely follow through. 

Then again, you’ve also seen several real estate investors make a neat income of seven figures by selling or renting out properties and homes. Wondering what their secret might be? According to the experts and experienced folks, it’s just a matter of sorting out some details. The rest will probably become manageable with time and practice. 

So, what can a regular investor do to be successful at real estate investment? Whether you have used mobile homes for sale or some stellar properties to rent out, here are some tips for making a fortune out of that real estate: 

1. Start with What You Have

You might be under the impression that real estate requires a huge amount of money right at the start. While it’s true that you need money to make money, it’s still possible to be a real estate investor in a small way. In fact, many people manage to have their own business or a successful career along with real estate investment. 

As long as your career or business is creating a positive cash flow, you can diversify part of it into real estate investment. However, if you’re just starting out in the real estate game, the best option is to start in a small or modest range. There’s no need to use up all of your money right away. The first deal is rarely the best one, so give yourself some space and time to learn the ropes first. 

In any aspect of life, but especially real estate, it’s a good idea to know how to read contracts. Make sure there’s no fine print that can fool you, and don’t put your signature on anything without reading it at least twice.

The next step is to start networking. With time and expense, you’ll be able to have lawyers, realtors, and other specialists in your network. You’d have to develop a good eye for spotting decent specialists, but that will only come with experience. 

It’s easily possible to learn the tricks and nuances of the market even when you start small in real estate. Cheap properties such as single-family units and multi units are one example. Another opinion is to get a property that you can renovate and flip for a profit. Some commercial properties might also be within a reasonable range. With these choices, you’ll be able to get some experience, hopefully some profit, and be able to limit your mistakes as much as possible. 

2. Don’t Be Afraid to Aim Big

Just because you’re starting out small, it doesn’t mean that you can’t end up making it big. The deal that you make in real estate is what really matters, so that’s what you have to chase. Your budget might go up and down according to several factors. But take heart and soldier on. 

For instance, aim to have around 16 units at least. If you stick with just a few units for the long run, you’re only going to get a couple of thousand per month at the most. At the same time, you’d have to sink several thousand dollars into the properties to make them capable of renting out to begin with. 

With 16 units or more, an investor or owner can hire a manager. When you have a manager or a property management team, you’d have more time for attending to the property properly. Alternatively, you can also start devoting your energy to other projects or to a full-time career/business. 

Of course, you may not have the cash to buy 16 units right away. If possible, start saving money towards this goal. You can also use other investors’ money by getting a partnership together. At the end of the day, however, learning to sell is necessary.

3. Get Disciplined and Stay Patient

If you’re a regular person without a massive amount of wealth, make real estate work by deciding on the strategy that’s best for you. When you’re a wealth builder, patience is key. Real estate can be an amazing way to get rich, but it will take some time and effort. 

For instance, flipping houses means that you need to buy a certain property within your range first. Then comes the task of renovating it properly. After that, you have to find a buyer who appreciates the changes and can buy the property from you. 

You’d also have to be patient and disciplined while learning the trade. There are several videos online that can help you get started in real estate, both commercial and residential. This way, you can pick up on the jargon and get variable tips from successful investors. 

At the end of the day, if you have a nice cash flow going on, don’t sell just yet. Real estate can give you some great tax benefits, which you can even realize for several years. Depreciation, tax-free liquidity, and other factors will work in your favor here. Once there’s a recurring income and you have the ability to manage it, you’re on your way to financial freedom for life. 

The BRRRR method is also worth remembering when you invest in real estate. BRRRR stands for buy, rehab, rent, refinance, and repeat. Buying might constitute something as inexpensive as a property with a $10,000 down payment. After you have ownership, invest a bit in rehabilitating the property, and then, have it assessed again. When you’ve made the property worth more, you can refinance according to your plans. This might involve renting or selling, but the money will then go into another better property. You’d be able to build up equity over time. 

4. Know the Basics and Consult a Mentor

Keep in mind that if a deal looks too good to be true, it probably is. You might be tempted to join a crowdfunding site or buy a property with both the management and tenant already there. These options, along with publicly traded investment funds, are usually the ones with the least returns. If you want to get the most profitable deals around, you’d have to find or create them yourself. 

When the economy is strong, there’s high consumer confidence as well. With this atmosphere, retail buyers will be more likely to make a purchase. This might create a bidding war, thus increasing the prices of investment like a flipped home. 

What you need to do is get to the deals before your competition does. For passive income with tax advantages, for example, it might be best to get the high returns of services like Airbnb or other short-term rental options. 

On the other hand, real estate can give you a pitfall when you least expect it. Online videos and courses can only teach you so much. This is where a mentor comes in; seek out someone with experience in real estate. If they’re willing to guide you and share their expertise, you’re in luck. 

5. Learn As Much As Possible Before Moving On

There’s no need to start throwing money away just yet. As we mentioned before, it’s fine to start small. This also means that you shouldn't be spending a lot of seminars, workshops, etc. Take this time to educate yourself; there’s plenty of information out there. A mentor is also a good place to start, but they shouldn’t be taking your money in exchange for guidance. 

Holding assets will help to build up your wealth in real estate. It might be better to hold on to what you have rather than flipping it right away. At the end of the day, people need a place to live. Plus, the older generations are now looking for relatively smaller housing, preferably close to the city. There’s a lot of potentials there, especially since the suburbs are increasingly more expensive and difficult for low to middle-income families now.

Educating yourself also means taking action on a regular basis. Get in touch with builders and contractors, pay visits to open houses, and attend meetups. When you’re ready, start looking around for the best possible deal (which will probably be hidden at first). 

The Takeaway

The tips above might not be able to guarantee your fortune in real estate but they will hopefully get you on the right path. It’s all too easy to get tempted by shiny deals and even scams. So, any guidance will help before you start earning more in the real estate industry. Like any other investment, starting as soon as possible is the best way to go. 

If you’ve made the decision to go into real estate investment, don’t put it off for too long. Take a strategic approach for the long run and don’t hesitate to move aggressively if things seem to be in your favor. Get comfortable with leverage, look around for credible business partners, but keep deploying that capital until you make your fortune!