Real Estate Investing for Beginners: Become a Real Estate Investor in Just 8 Steps

have you ever thought about becoming a real estate investor do you want to make money either actively or passively by investing in real estate properties then you've come to the right place real estate investing offers many advantages compared to other investments and one of the best things about it is that there are so many strategies to choose from you can flip homes wholesale properties buy and hold or invest in rental properties but something that many struggle with that prevents them from reaping the benefits of investing in real estate is that they don't know where to start so the big question is how do you become a real estate investor hey my name is greg and i'm here today to walk you through the eight steps you need to take to become a real estate investor that's right all it takes is eight easy steps to become one of the millions of americans making money from real estate as long as you have the right dedication and the right mindset for success quick fact here did you know that there are over 20 million rental properties in the u.s and about 15 million of them are owned by individual investors many of these investors own multiple properties because the rental income from one property helps them buy a second a third and so on so if these millions of people were able to become successful real estate investors and grow their portfolio in no time so are you all you need is to get started so let's take a look at the eight steps you need to take to become a real estate investor step number one learn the basics of real estate investing to become a competent real estate investor you need to learn the basics of the industry and what are the basics knowing the terminology the strategies the difference between cap rate and cash on cash return and how real estate works in general you also need to know the risks involved in buying an income property the legal aspects of being a landlord and many more being a real estate investor you need to understand the trends that will benefit you before everyone else does whenever a profitable real estate investment opportunity shows up you should know how to be the first one to find out about it the good news is that there are plenty of readily available and easily accessible education materials many of which come free of charge you can start learning about real estate investing by reading real estate blogs listening to investment podcasts and watching videos right here on youtube step number two network with others in the industry becoming a real estate investor and being successful at it requires a lot of networking with the individuals you need to do business with it will help you tremendously if you have excellent working relationships with local realtors contractors lenders attorneys appraisers and property managers in your selected markets building a solid real estate network will help with gaining access to the best deals on the market negotiating preferential terms closing quickly maintaining your properties in a good shape and managing your rentals efficiently so start building your network before buying your first investment property step number three perform financial analysis and refine your investment plan to become a determined real estate investor you have to decide what exactly you want to achieve with your investment properties do you want to earn extra income while still working a regular job do you want to change your career and invest full-time or do you want to retire early and travel the world you have to analyze your finances and your strategy to make sure that they align with your personal and business goals and objectives don't be alarmed if all this sounds overwhelming making a plan and sticking to it will guide you on how to get started and keep growing in your real estate investment career step number four choose the right location for investing once you have a plan on how to become a real estate investor the next step is to look for the best market for your short-term and long-term investment goals every experienced investor will tell you that location is crucial in real estate the location of your rental property will impact its value demand from renters rental income long-term appreciation and eventually return on investment location refers both to the city and the neighborhood keep in mind that traditional renters and short-term rental guests prefer properties with convenient access to transportation schools and hospitals as well as supermarkets eateries dry cleaners and entertainment options step number five figure out a strategy that works for you an important step in the process of becoming a real estate investor is finding a strategy that works for you in line with your finances and your goals and aspirations there is no one fit all model when it comes to getting started in real estate investing each investor has to find the strategy that best fits his or her personality and plan nevertheless many investors figure out that rental properties offer an easy entry into real estate investing they don't require excessive initial capital they are intuitive they are always in demand they bring cash flow in the short term and profit in the long run so if you're just getting started this is a strategy that you should definitely consider step number six find the perfect investment property the property you invest in should depend on your investing strategy and financial situation you can search for properties for sale in a variety of ways both online and offline however remember that not every property you come across will be a good investment you must conduct an investment property analysis in order to make the best decision and purchase the perfect property to be a successful real estate investor you should know what rental income occupancy rental expenses cash flow cap rate and cash on cash return you should expect from a property before deciding whether or not to buy it good real estate investment decisions are those based on solid data and analysis and not on guesswork if you need some extra help in this step check out mashfizer our artificial intelligence machine learning algorithms allow you to analyze the investment potential of any residential property in the u.s market based on the performance of comparable rentals in the area step number seven conduct a rental market analysis before acquiring an investment property you must determine whether or not the neighborhood is suitable for your strategy now it's time to get into a more detailed analysis that goes beyond the neighborhood features and amenities you must find out the average rent in the market and compare it to the property costs your rental property must provide positive cash flow right away in order to cover your monthly expenses step number eight manage your rental property many first-time real estate investors figure out that managing a rental property is harder than expected and that they need some help there's nothing wrong with being a diy landlord and there's nothing wrong with hiring a professional property manager as long as you have factored the cost of the latter in your investment property analysis if you decide that you don't have the capacity to manage your property resort to your network to find the best property manager in the area so this is how to become a real estate investor in just eight steps do you have any tips that you want to share with beginner investors please do so in the comments section below thanks for watching today's video if you enjoyed it please remember to give it a big thumbs up and don't forget to subscribe to our channel we'll see you next time

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