Shopping the Right Property
To get started in the industry, you’re probably going to want to start small with something cheaper. If you are looking to get a smaller or cheaper property or even a more expensive property, the first thing you need to do is have the right shopping strategy. Decide early on if you would rather do house flipping, commercial, or residential. The process and method for each of these are slightly different. You might be tempted to go the house flipping route since it’s been trending as of late. For example, Real Estate Elevated explains, “in the last few decades, flipping houses has become a popular way to earn money, both as supplemental income, and as a primary occupation.” However, that doesn’t mean that there aren’t other options out there. Getting training and apprenticing at a local real estate office can be a wonderful opportunity to get your foot in the door of the industry. You could also contact commercial investors and real estate experts and see if they will allow you to shadow them for a couple hours up to a couple days. This is great because it allows you to be more than just what it says on your resume or on your legal record. You are able to connect with people in the industry as a person, and be treated as such. This will also allow you to find areas that are under market value, so you can know the best locations to invest in.
Liability
There are a lot of contracts and legal issues associated with buying real estate. Which might cause you to start stressing, but that doesn’t have to be the case. Doing your research and knowing what problems usually come up is a great way to avoid early mistakes. All of that being said, the last thing you want is to have a legal battle on your hands. Argo Group cautions to make sure you consult the right attorneys and have protections in place, so you aren't putting your future at risk in any way with your real estate empire. Hiring an experienced attorney can also save you a lot of headache in the future as your business expands and things begin to get more complicated.
Marketing
No real estate mission is complete without the proper marketing. Once you have found the property you want, you need to keep up with marketing tactics. Leverage social media to get eyeballs on the property so you can flip it or rent it out. According to AdWeek, “69% of real estate professionals use Facebook because it works.” Even having the right kind of imagery helps in making the property seem more valuable so you can get better loans from the bank.
Residential vs. Commercial
There is the age-old debate of residential vs. commercial. This is key because you need to know if you want to sell to businesses or consumers. Look at your past experience and sales record and make the choice that aligns with your personality. Commercial real estate can be more high pressure, but higher reward sector. Residential, on the other hand, is a little more stable and consistent. No matter what choice you make, you need a specific timeline in mind. You don't want to spend years flipping a house if you only have one buyer. On the other hand, a business property could take longer but make more money in one lump sum, or make more money over time. However, as explained by SmartAsset, “a steady cash flow doesn’t come without a price, however. Managing a commercial property investment typically isn’t a one-person show. You’ll likely need to hire a professional property manager to find and vet tenants, coordinate the signing of lease agreements and oversee matters on a day-to-day basis.” Real estate can be one of the more difficult industries to get into. It can be a bit more accepting of those who have a criminal record, which is why it may be a good option for those who are in that or similar situations. If you feel like you’d do well in the field and you have the right mindset and tools when you start, you can increase your chances of success. Protect yourself, maximize your profits, and be smart about your options with the tips above. Then, you can relax as your passive income begins to mount up. Here are a couple more articles about jobs, and work that might help you out in your journey:
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