While other industries struggled during the pandemic, housing markets stayed strong. Things like the shift to work-from-home, low interest rates, and a supply-constrained market all contributed to the solid performance of real estate.
Perhaps you've looked into real estate investing but don't know where to start. Buying a house, whether for residing in it or investing, marks a significant financial step. It's not a step you want to take blind.
If you're a beginner and want to know how to get started, read this quick guide for investing for beginners.
1. Decide What You Want
Diving into real estate investment is exciting. Property investing, like any investing, comes with risks. Take time before you start to make a plan.
Assess the level of risk you are comfortable with. If your risk comfort-level is low, consider real estate investment trusts. These trusts allow you to invest in companies that work in real estate and produce revenue from them.
How long of an investment window do you have? If you're looking for short-term investment, then a flip house may be right for you. If you want to play the long game, you may rent for a while before selling
Another thing to consider is the time commitment that comes with running a rental property. Do you have the time to find tenants, address maintenance concerns, and more? If not, a property management group can run the operation for you.
2. Patience Is A Virtue
Real estate moves quickly these days. You may be tempted to throw money at any potential project as a way to get your foot in the door. However, real estate is a huge investment.
Similar to the above advice, most real estate investing tips start with making a plan. Make a list of criteria a house must meet (neighborhood, budget, renovations, etc.) and stick with that list. Only jump at a house that meets all of your criteria.
3. Find A Savvy Realtor
If you're choosing to work with a realtor, find the best before you start. Some realtors have experience working with investors and some don't. Knowing their client is looking for real estate investment, a savvy realtor can help analyze the property for potential risks and rewards.
4. DIY If Possible
Can you paint walls? Can you tidy up the landscaping? If you can follow an online video tutorial, you can save yourself some money and learn new skills!
Doing here-and-there projects in bathrooms, kitchens, and bedrooms can boost the value of your property without having to pay for a contractor.
Start Your Real Estate Investing Journey
There's a place in real estate investing for beginners. As you read up on real estate investing tips like these, you'll find the confidence to dive in and reap the rewards.
If you live in the San Francisco Bay area, check out Kenny Realty. We're professional, family-run business that provides free consultations to talk about your investing goals. We'll help you make a plan to reach your real estate investing dreams.
Contact us today start your real estate investing journey!
Evan has been in the real estate and property management field for 6+ years. He is experienced in working with first time home buyers, is an Accredited Buyer’s Representative (ABR®), Seller Representative Specialist® (SRS) and Seniors Real Estate Specialist®(SRES®). He also works closely with Kenny Realty owners, getting their rental properties rented as quickly as possible. Evan is responsible for monitoring rental market conditions and advising our owners on market rates. He has outstanding communication with all clients he works with, keeping everyone in the loop at all times. He is the third generation of the Kenny family to practice property management on the peninsula.