Investors
Up to 90 percent of all millionaires reach their status by owning real estate. In fact, more money has been accrued from the real estate industry than in all other types of investments combined.
Below you will find some solid advice on how to begin building your real estate portfolio:
1. Begin Small
Real estate is not a game that you can win overnight. You are going to have to be in this for the long haul. Therefore, you should most likely start out on a small scale and work your way up to bigger things. You could start out with a single rental for example. Then, once things are under control, work your way up to a duplex or triplex.
From there, you can work your way up to apartments or a commercial project. The idea is to prove to yourself and the bank that you can maintain a profitable portfolio.
2. Search for Deals
You make money when you find a great deal on a piece of property. Do not go in and overpay for a particular piece of property just so you can get into the market. If you do so, it will be very difficult to ever get your money back out of the investment. Make sure that you are going to make money on the front end.
3. Start Early
Real estate is not something that you need to wait until you get to a certain age to try. As long as you are an adult, there is nothing that says you should not invest in real estate. The earlier that you can afford to get started, the better off you will be in the long-term. If you are unsure of whether you could make it work financially, it is a good idea to visit with a real estate loan officer. They will most likely be coming up with the bulk of the money for the purchase of the property and they can give you an idea of whether or not you could get the money. Take stock of what you have to lose, usually, you will find it’s a risk worth taking.
4. Leverage
Real estate investors make good money and leverage their money to buy property. Use banks and private lenders to help fund your purchases. The more properties you can buy, the more potential there is for profit on your part. It’s best to keep your savings for repairs, emergency upgrades, and vacancies.