Real estate investors should always refine their craft by educating themselves on the ins and outs of their business, while becoming aware of the opportunities and challenges ahead. The majority of new investors are either overwhelmed, misinformed, or overconfident. The trick to being successful at real estate investing is doing your homework and learning all that you can about the market from reliable sources. Ironically, knowing too much in the beginning stages of trying to get into multifamily investments can lead to analysis paralysis.
Buckingham Investments recommends to begin with a step-by-step plan from one of our experienced real estate investment agents. Building a plan would allow you to learn in stages while still moving forward. Our plan is designed to help you focus on the essentials, saving a lot of time or possibly frustration and avoiding becoming overwhelmed. There can be a steep learning curve as you begin. But the payoffs are potentially quite lucrative, and if becoming a real estate tycoon is on your bucket list, you have to start somewhere! Buckingham Investments is here to assist you in your endeavors by framing your mindset around money and wealth and how both are created through multifamily investing.
Pros of owning rental property:
- Building equity in a long-term asset that can gain value over time
- Generating reliable cash flow since your tenants will usually pay monthly
- Having the flexibility to sell or use the property for something else if you decide
The five main styles of real estate investing include:
- Sole proprietorship – you own the property alone
- Partnership – you own the property with others
- Syndication – Your money goes into a pool with other investors to purchase a building/property. Likely a passive investor, i.e. you are not making decisions, typically for accredited investors.
- REITs (Real Estate Investment Trust) – this is like a stock or an ETF which owns multiple properties and sells shares that investors can buy.
- Crowdfunding – You invest in an online platform which is like a syndication.
Learn what to look for when investing in a city, state and individual rental property. When choosing a market that appears to have potential there are many different market factors and data points that it can feel overwhelming to sort through every single line item but when investing in a new market typically looking for the following four characteristics will give you a good indication of how the market is performing:
- Population growth
- Job growth
- Wage/salary growth
- Employment Diversity
If you have any questions about investing, would like to invest or have a question about your investments, please Contact US. Once you understand the principles of investing, you can apply that knowledge to bigger and more expensive deals. Buckingham Investments has so many resources available to help educate you, don’t feel like you’re on this journey alone. We offer a more personalized experience and opportunities to dive deeper into the world of real estate investing.