If you’re looking to level up your real estate investing career, it helps to know how the pros do it. Investing in real estate has ballooned into a $163.7 billion industry in the US alone, as more and more people attempt to chase opportunities within America’s robust housing market.
This means that real estate investment is now a crowded field, where only the best can succeed. Rather than going over the same old real estate investing tips that you have probably heard a million times before, we thought we would share with you the insider tips on the best real estate investments you could make.
If you’re wondering how to get started in commercial real estate investing the right way, read on to find out.
1. Encourage Referrals
If you’re wondering how to invest in real estate like a pro, referrals are something you should become intimately familiar with. Many of the most successful realtors make a large portion of their income via referrals, either from past buyers and renters or through colleagues and acquaintances.
Referrals are a cornerstone of rental property marketing. This means you should manage your reputation carefully and always encourage people to refer their friends to you. It also means listening closely to any concerns or criticisms about your work.
2. Keep Compliant
You don’t need to read the latest real estate investment books to know that legal compliance is key. Keeping up to date on the latest real estate regulations and taxation policies that affect you are essential. Not only will doing so keep you out of legal trouble, which could cripple your business, but it could also help fuel long-term growth.
There are likely to be regulations and incentives in your area that you could take advantage of to access easy credit, purchase cheaper properties, or reduce your tax burdens. Keep compliant and keep yourself updated.
3. Opt for Single-Family Homes
One little-known fact is that single-family rentals are often the best real estate investments out there. Over the past century, single-family homes in the US have nearly always appreciated in value.
What’s more, focusing on single-family homes will help you attract the right kinds of tenants. You will be more likely to attract affluent tenants that want the comforts of a home and are willing to pay a premium for it.
4. Never Over-Leverage
It might be tempting in a world of cheap credit to over-leverage yourself and invest as heavily as possible. However, this is a rookie mistake that could lead to some serious headaches further down the line.
If all of your properties are mortgaged to the hilt, all it takes is one bad month for you to become bankrupt. Keep a healthy nest egg of savings and capital for when times are leaner.
5. Don’t Overdo the Rehab
Finally, it’s worth noting that every property you acquire does not need to look like a glossy magazine spread before you start renting it out. It is rarely necessary to furnish a property with Carerra marble and parquet floors before it is ready to rent.
If you are not in the ultra-premium real estate market, cost-effective and middle-of-the-road renovations will be sufficient. Strive for quality, but don’t take it too far.
More Real Estate Investing Tips for You
If these real estate investing tips have helped you, then it’s time to learn more. If you want to be the best investor or landlord that you could be, we’ve got you covered. Make sure to check out our rental marketing tips to find out exactly how you can get the tenants you want and the rental income that you need.