If you’re a beginner real estate investor, congratulations!
Getting started in this industry is a fantastic opportunity. There are so many different strategies to explore and avenues to take. It can be a little overwhelming at first, but there’s no need to worry — we’ve got your back.
In this blog post, we’ll discuss seven beginner-friendly tips and tricks that will help you get on track for success in the world of real estate investing.
1. Get To Know the Market
The first thing beginner investors need to do is figure out what their local real estate market demands. Beginner investors need to understand:
Which types of properties are selling
How long they’re staying on the market
How much other similar homes are going for in your area
The more you learn about your specific location, the better idea you’ll have as to where future opportunities will arise. This can be done by using online tools like Zillow or Rentometer, talking with friends who invest in real estate, or attending a meetup group.
There are also many ways beginner real estate investors can tap into information about the market. For example, by buying newsletters or real estate investing books.
Once you understand your local market trends and dynamics, it’s time to start looking for opportunities.
2. Find a Good Mentor
A mentor can be your best resource for learning how beginner real estate investors get started. A good mentor will not only help you figure out profitable strategies, but they’ll also make sure you don’t make any costly mistakes along the way.
To find a good mentor, try asking around for recommendations. Find out from people who invest in property or by checking online forums like BiggerPockets. You could also look into consulting with an established investor directly.
In this case, it’s important to do your research. Make sure you choose an expert who actually has experience and success in beginner real estate investing rather than someone who simply talks big or claims they can help everyone succeed.
You’ll also want to make sure the potential mentor will not charge exorbitant amounts of money for their knowledge. And this is especially true if you’re starting with limited funds.
Real mentors are willing to share what they know, so don’t be afraid to ask questions and get their input.
3. Create a Niche
When beginner real estate investors first get started, it’s easy to be tempted by every opportunity that comes their way. But this can backfire on newbies who aren’t careful about choosing which property investing strategies they pursue.
One of the biggest mistakes beginner real estate investors make is trying too many different things at once instead of focusing on one niche and building up from there.
It’s challenging for beginner investors to master several areas in such a short time frame — so why try? Instead, focus your attention solely on one or two niches until you’ve got them down pat before moving on to something else.
For example, suppose you’re interested in flipping properties but don’t know much about renovation work yet. In that case, it may be a good idea to first focus on finding and flipping distressed properties. Once you’ve mastered this niche, then that’s the time to move on to something else like rehabbing or wholesaling homes.
This beginner real estate investing tip might seem counterintuitive at first. However, it could be one of your best strategies for success because it gives beginner investors a clear path to follow.
4. Start with a Small Amount of Money
Another real estate investing mistake that beginner investors often make is thinking they need to start with an expensive real estate investment.
Beginner real-estate-investing tips suggest not going all-in from the beginning. It’s easy for real estate deals to go bad quickly, and you don’t want to be undercapitalized. Instead, try starting your portfolio out slowly by using only a small percentage of your available funds so you can see how things work before taking on more risk.
Once you have confidence in yourself as an investor, think about putting up larger amounts of money to build up your base faster. However, until then, stick with what works best for beginners: smaller real estate deals.
5. Leverage Social Media
Social media is a real estate investing tool that beginner real-estate-investing tips recommend you use to your advantage.
Many realtors and investors are now using social media platforms like Facebook, Twitter, Google+, and LinkedIn as marketing tools and for networking purposes. And real estate deals often come through word-of-mouth referrals via friends or family members on social networks.
For example, if you’re looking to buy real estate in a particular area, you can create your own “Buyers Wanted” post on Facebook and reach out to people who live near the desired location.
You’ll increase your chances of finding realtors or investors with properties for sale because they’re likely going to see your message.
Social media is an amazing real-estate investing tool that beginners overlook but should leverage instead of ignoring it altogether.
6. Keep Networking
Another real estate investing tip for beginners is networking with realtors and other real estate investors.
If you’re not already in contact with some realtor friends, it’s a good idea to start building up your entrepreneurial network as soon as possible. The more people you know, the better your chance of finding deals that don’t come through social media.
And while meeting new contacts at industry events and conferences can be beneficial for a beginner real estate investor, one way to maximize connections is by leveraging online tools such as LinkedIn. This tool allows users to find business connections via mutual groups they belong to or common interests they share.
7. Don’t Follow the Crowd
Last but not least, real estate investing tips for beginners recommend that you should never follow the crowd.
Many real estate investors get comfortable sticking to what they know and staying in their comfort zones — which often leads them to make costly mistakes.
You should always research and test real estate investing strategies to see what works best for you. Plus, real-estate-investing tips suggest that you keep an open mind because the real estate market is constantly changing too.
So don’t just copy successful people’s real estate investment practices without testing them out yourself first. You could end up wasting a lot of time and money on something that doesn’t work for you.
Become a Pro With These Beginner Real Estate Investment Tips
These real estate investing tips for beginners are beneficial to ensure you take the right first steps towards making real estate investment gains. Once you know real estate investing fundamentals, it’s important to take action and find real estate deals that will earn you profits.
But until then, stick with these beginner real estate investing tips. That way, you’ll get your feet wet without sacrificing too much of your capital in the process.
For beginner investors who want to learn how real estate investing works, check out our investment property deals on Memphis Investment Properties today.