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How to Start and Keep Investing in Real Estate

Working With Real Estate Investors? Here's Why They Make Great ...

 

Anyone can get into real estate investing, despite the economic situation, and despite where you're starting. People will always need a place to stay, so real estate is a pretty reliable investment. It's much easier to find success in this field if you have money, or know where to get it, but once you have some capital or credit, it's go time!

Start small...

The first thing you need to know is that it doesn't take millions to get started, although it does seem much more appealing. Start small by investing in a duplex or a single-family rental. If you have sufficient cash to go for bigger properties, experts even still recommend keeping your eggs in a few different baskets. You don't want to spread too thin, but one big property left vacant can bleed you dry, where 10 smaller properties can support each other as some are vacant and others are rented. As a starting point, we'd suggest single-family homes because they require the smallest investments and can provide some of the most significant returns.

Reinvest...

Once cash is coming in, stack it and multiply. The key is to reinvest what you earn, so you can play with bigger numbers, and reap bigger profits. You might want to start considering multi-families, which help keep your investment in the green. The other units should cover most, if not all, sunk costs of a vacant unit waiting for it's next tenant.

This is a numbers game, and you want to play with bigger numbers. Imagine you make $1000/m per property. You could spend that $1000 every month, or wait a year and get another property. Then you're making $2000/m. Half a year later, you'll have three properties making you $3000 a month. Three months later, you'll have four properties making you $4000 a month. You get the idea: save and reinvest. If you're all in, not even skimming 10% for clothes or steak dinners, you can make significant progress in good time. 

Keep growing your empire... 

Real estate investors usually start by doing everything themselves. This saves a lot of money on management and maintenance costs. Once your ROI allows for outsourcing these care-taking tasks, you can better utilize your time, however you define that. Maybe that's family day trips, maybe you want to start a new business, or move to the Himalayas to master the art of bending your element. Whatever floats your boat.

It's important to have an overarching understanding of what you're doing in real estate investing. The necessities like knowing the laws, understanding how to manage properties, and mastering your financial literacy, are key. It's also vital to know what you're doing in respect to yourself and your goals. Better yet, "why" you're doing. 

It is also helpful to create a strong network with real estate agents and lenders since their lives revolve around these fields. They might have invaluable insights, or you might find the opportunity to make each other money in the future. Our Realtors at Castles Unlimited are the experts in their areas, and we have agents for every niche imaginable. We're happy to work with new and veteran investors alike in securing their next investment property, or planning for their future investments, so remember to always...

Contact us at Castles Unlimited with all of your real estate needs!

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