Are you interested in becoming a real estate investor? If so, you have a number of interesting options in front of you. For example, you can commit for the long haul - and buy properties and wait for the value to increase - or you can become a landlord, and buy and rent today. You also have another option: The home flip. This choice is a quick way to turn a profit, since you'll be picking up a house for cheap, fixing it up and selling it. However, it is also the riskiest strategy.
No matter your choice, you'll have to make sure that you are ready for life as a real estate investor. The best in this business have a few traits that make them so successful, and you should be careful to balance the hazards of the industry with its positives. That way, you can ensure you are making a profit.
In order to get started as an investor, here are a few creative tips that you may want to know:
Think outside the box
The best real estate investors have ways to withstand the housing market's ups and downs and make money no matter what. To do that yourself, you may have to get creative. In an article for The Bigger Pockets Blog, Michael Blank wrote that visualization can be the trick you need to do just that.
For example, visualization will help you believe you can be successful, and it will allow you to overcome mental hurdles and grow as a professional. His first tip is to create a dream board - this is a type of art project where you gather images of everything you want to see in your investment career. That could be houses for sale, locations, even colors and design elements you want to use during a remodel. This will help you stay positive and motivated.
In addition, Blank recommended that you set a few realistic goals. You can write down that you'll buy your first home to flip in six months, or that you'll have tenants for your building before the end of the year, for example. Get it in writing and read your list on a regular basis.
Your success as an investor is also tied to your knowledge of the housing market. With CRS Data, it is now easy for you to access mortgage records, warranty deeds and much more, right online. Walkthrough our CRS Data Real Estate Suite to learn more.
Determine your risk and reward
Not every investment strategy is right for you. To decide which is which, it can help to balance the risk versus the reward.
According to Kiplinger, home flipping is a high-risk venture. While you can make a lot of money going this route, there is a chance you could end up losing out. To prevent that from happening, find homes in up-and-coming neighborhoods or ones that need repairs. On the other hand, being a landlord is lower risk. Once you have one home, you can use your equity to pick up more properties and keep that income rolling in.