1. Don’t Start Big
There’s no need to start out by buying a 50-apartment complex or expanded real estate investment. Your best bet is to start small. Get yourself a single condo or house, which allows you to get your feet wet and explore what it’s like to be a landlord. You may find that you love it, and end up making more real estate purchases over the years. On the other hand, if you decide it’s not for you, it’s much better to find out after a single, small investment.
2. Keep Your Emotions in Check
Investing in real estate can be an emotional thing. In many cases, you either love a property or you don’t, but from an objective standpoint, you should review it for its resale potential. It doesn’t matter if you love the floor plan or amenities, it all depends upon how much you can get for the property when the time comes to sell.
3. Investigate Banks, Realtors, and Mortgage Brokers
Since you’re more than likely financing some of your own investments, start investigating banks. Although you should definitely look to your current institution, you may find better rates with the competition.
4. Have an Exit Strategy
As with any other investment, the real estate market can go south virtually anytime. Even though things seem strong at the moment, we could face a downturn similar to what took place in 2008 and 2009. Acknowledge that the time may come when you need to cut your losses, and be ready to make a sale whenever the need arises.
5. Reach Out to Investors in Your Area
As a beginner, you should research online whenever possible and also reach out to local real estate investors who can give you more personalized advice and tips. One of the best ways is to use a website like Meetup, which often lists local gatherings of real estate investors. Pick their brains for any questions you might have, along with other pointers they can provide.