17 Things to Considerif you want to get started in Real Estate Investing

Investing in Real Estate has long been a lucrative and appealing option for many investors.

As investment trends come and go, real estate remains strong because people will always need somewhere to live. There are certainly some inherent risks involved with real estate investing, especially because market fluctuations can be unpredictable. However, with some knowledge and forethought, there’s no reason you shouldn’t enter the real estate investing arena.

Consider these 17 tips about investing in real estate to help you decide if you’re ready to take the plunge...

Brought to you by Durise.com

#1Motivation & Hustle

An important part of the real estate investing game. If you’ve got both in spades, you’re already halfway there to lucrative investing!

#2Learn the Lingo

There’s a whole different language associated with real estate and investing - from “leasehold interest” to REITs to public equity. Learning the terms is critical.

#3Don’t Expect to Get

Rich Quick

Real estate investing requires hard work. You have to be smart, you have to be willing to work, and you have to understand your risk tolerance.¹

#4Decide on Your

Investment Type Early

There are many different avenues you can select when investing in real estate - flipping, renting, crowdfunding, REITs, etc. Choose your path and then go from there.

#5Shift Your Thinking

Many people view real estate as a transaction. In order to be a successful real estate investor, you need to shift from a transaction-based viewpoint and instead embrace real estate as an investment strategy.

#6Assess Your Cash Flow

Honestly assess your current cash flow, and also do some honest forecasting for the next few years, to make sure that your financial situation can support real estate investing. This is especially important if it takes a few years for you to start seeing returns.

#7Consider Your Credit Rating

As anyone who’s ever purchased, or tried to purchase, a home knows, a good credit score is crucial to your purchasing power. The same is true for real estate investing.

#8Have a Plan

Make sure you enter into any investment opportunity with a clear plan. Buying into an investment just because it’s a good deal could spell disaster if you’re not sure how you’re going to work that investment once the deal is done.

#9Build a Team

It’s best to not go into a real estate investing opportunity with a lone ranger mentality, especially if your investment is going to require outside help. Some team members to consider include: real estate agents, professional contractors, and financial advisors.

#10Perform Due

Diligence

Never fall into the trap of purchasing based on recommendation without first doing your own research. The worst way to start your real estate investing career is paying to much for a property.

#11Learn the Landscape

This is especially true if you are investing in properties overseas or across the country. Research the local markets, pay attention to areas of decline and up-and-coming hot spots, and pay attention to the income levels or the area.

#12Adopt a Business

Mindset

If you’re just investing in one property at a time and working from transaction to transaction, you are not building a true real estate investment portfolio. You need a steady pipeline of prospective deals; sufficient volume will weed out the marginal deals and let the good ones rise to the top.

#13Be Prepared for

Multiple Exit Strategies

You should never enter into an investment transaction without having at least a general idea of multiple opportunities for turning a profit. You’ll just paint yourself into a corner with that mindset.

#14Consider Adding an

REIT to Your Investment Portfolio

“Adding a REIT to your portfolio can complement stock and bond funds...but you must be sure you understand how the real estate fund is designed and how its managers will likely extract value from the holdings. You can buy shares of REITs and real estate-based funds, but the performance of the funds is based on both cash flow and gains from occasionally selling properties – a very different scenario from the typical performance drivers of stock and bond funds.”²

#15Understand the

Difference between Debt and Equity

Investing

Then decide which path is right for you. When you invest in debt, you are lending funds to an owner or purchaser of real estate. You receive periodic interest payments from the owner and a security charge against the property in the form of a mortgage. An equity investment, on the other hand, represents a residual interest in the property. When you are an equity investor, you are essentially the owner of the property. You stand to gain a lot when the property value increases or if you are able to get more rent for your building.³

#16Work Your Contacts

& Build Your Relationships

Network, network, network! The more relationships you have, the more opportunities you have to leverage those contacts.

#17Embrace New Technologies

...especially online real estate crowdfunding platforms. New tech has given rise to new forms of real estate investing opportunities, namely real estate crowdfunding. This venue enables investors of all ages, risk profiles and wealth levels to acquire real estate.

Check out our Dubai-based Real Estate Crowdfunding company, Durise, to see how you can start building your global real estate empire from anywhere in the world.

Durise enables investors of all ages, risk profiles and wealth levels to acquire real estate.

With as little as $1,000 down, investors across the world can buy a stake in a single-family home, or with a larger

investment, they can opt to purchase shares of a 300,000-square foot office tower, for example.

SOURCES(1) http://www.bankrate.com/finance/money-guides/10-lethal-mistakes-for-real-estate-investors-1.aspx#ixzz46ldyjZ00 (2) http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/03/05/how-to-begin-investing-in-real-estate (3) http://www.investopedia.com/university/real_estate/real_estate1.asp

http://durise.com