Over the past decades, real-estate investing has become one of the most popular ways for Americans to passively or actively grow their level of wealth. With the stock market consistently improving over the last few months and the housing market staying consistent, new investors keep entering the real-estate field hoping that they can make their share of money before the opportunity falls away. The real-estate market continues to grow, especially as it is seen by investors as a less speculative fashion of investing than the stock market. According to the online statistics portal Statista, the projected total sales of home improvement retailers will be $409.2 billion in the U.S. in 2019, showing the boom of real-estate investment and the flipping market.
Of course, there are massive risks involved with real-estate investment, but as in any other investment market, investors can at least partially shield themselves from such risk by taking steps to make sure they make informed and intelligent investments.
Education should be the focus of all new real-estate investors. Learn as much as you possibly can from research before your first project because not everything will go according to plan during your first investment project. Learning the key terms and familiarizing yourself with the steps to take out the right loans will pay dividends in the long run when trying to finalize your project. The more prepared investor will generally be more successful than the unprepared investor.
Think through every decision. This piece of advice may seem incredibly obvious; however, it is highly significant because real-estate investments are major purchases, so you want to make sure scenarios are right for you before dumping huge amounts of money into them. Make sure that each property you’re considering fit within your investment strategy and budget, so you get the most out of every opportunity with which you decide to move forward. Additionally, look into the houses, too. It’s not all about the numbers; if the property is tough to work with, it should go without saying that you should leave that opportunity on the table.
Networking with other investors and lenders is an important part of the process to continue learning about investing. You can learn a new side of the business such as refinancing houses or working with rental properties from people who have actually done that to figure out what works best for you. Real-estate conferences and conventions happen all over, so there a good chance that one is coming up close by you.
Figuring out the strategy that works for you is one of the later parts of the process but still important. Do you want to fix-and-flip quickly or buy and watch the value of your house increase with time? Determining the investment strategy that works with your interest, budget and the amount of time you’re willing to put into your investment are all key factors and becoming a successful investor.
Always continue to learn because becoming a better investor means being willing to take in new information at every turn. Doing your due diligence and asking a lot of questions will lead to real-estate investing success.
At Sunset Equity, our team delivers the industry’s best in private lending products and programs aimed to serve our clients. We lend nationwide in 47 states and make it our consistent goal to provide the best in private financing in the real-estate industry. To learn more about Sunset Equity’s lending programs, please call 1-833-SUNSET-1, email [email protected], or click here.