Image by mohamed Hassan from Pixabay
While , technically , anyone can become a real estate investor these days , what does it really take to become a real success and what are the steps to get there ?
Before you get started , there are a few things to keep in mind that will help you determine what kind of real estate you want to invest in . The first thing you need to figure out is what kind of real estate strategy you want to be a part of . Decide whether you want to be an active investor or a passive investor .
An active investor will typically involve themselves in fix and flip strategies , wholesaling properties to investors , finding and managing a rental property themselves , or working as a licenced real estate agent in their area in order to build commissions for other future investments . An active investor is likely working nonstop , on multiple projects at once , and is always in need of funding .
On the other hand , a passive investor can engage with real estate investing through buying shares of a property portfolio , partnering with other investors , or just generally investing in other real estate investments .
The choice between being an active or passive investor is really up to the individual and how much they want to be part of the daytoday operations and rewards of a property . Aside from some monetary constraints or a license to become a real estate agent , there are no barriers to entry to become a real estate investor as anyone can participate . They must first figure out what kind of investment strategy they wish to become a part of first .
Once you have committed to and figured out an investment strategy , you can then move on to learning up about the properties themselves . This next step will require a lot of research information as your end goal is to become a realistic competitive expert in the real estate market .
Some of the key subjects to know are
Image by mohamed Hassan from Pixabay
what kinds of properties are there and which ones to focus on , and what is the property ’ s situation in terms of structural support , renovation , location , community , real estate laws and taxes . It is important to note that many properties are very different from each other . For example , what might the investment differences be between a multifamily rental property in rural New York compared to urban New York ? Or how about a singlefamily property ? Or a commercial property ? Or the difference between the exact same property in the mountains compared to the beach ? The point is you must be able to distinguish between all the different categories of real estate on top of all the different legal , geographical , and cultural factors that may arise in order to become an adequate expert in your field .
To start off , you might want to focus your skills and knowledge on a particular specialized segment of real estate investment to give yourself a potentially unique advantage .
Overall , unlike many other career paths , earning a degree is not required to become a real estate investor ; but if you want to become successful at it , you will have to teach yourself and it will take a lot of time and patience .
33