If you’re new to real estate investing, or simply exploring the possibility of becoming an investor, there are certain steps you can take to give yourself the best chance to succeed. If you’re a seasoned investor with years of experience under your belt, then you’re probably already doing most, if not all, of these things. If not, then consider starting now if you want to take your game to a whole new level. Every successful business needs a solid strategy in place to stick around in a competitive market, and real estate investing is no different.
6 Steps To Success as a Real Estate Investor
- Make Yourself Known - To get the best deals, you have to be proactive. Make sure sellers know your name and that you’re interested in buying properties. Join local real estate groups, subscribe to a multiple listing service (MLS), attend networking events, work your social media accounts, and do whatever else you can think of to make connections!
- Know How to Find The Best Deals - In addition to searching for properties on an MLS, you can also find potential properties on other real estate listing websites, on Craig’s List, or even by driving through your target neighborhoods and seeking out ‘For Sale’ signs. Working with a mentor and/or wholesalers is another great way to learn about properties coming onto the market.
- Take Advantage of Hard Money Loans - Choosing a hard money loan for your investment properties, rather than more conventional real estate loans, you are almost always able to keep more cash in your pocket. Plus, hard money lenders are often investors themselves, giving them the expertise to help you every step of the way!
- Establish a List of Buyers - Having a list of potential buyers for your rehabbed property can make for a quicker sale when you’re ready to move the deal forward. Not having any contacts established will make turning the property that much more difficult and can delay your ability to sell.
- Know How to Negotiate - Not only do you want to have a list of potential buyers built up in advance, you’ll also want to organize your list by those that you know and trust. Negotiating the deal and making it fair for both parties will be much easier if you already have an existing relationship with your buyer. Referrals are also a great way to establish a list of those you can trust.
- Do Your Due Diligence - If a deal looks too good to be true, it probably is. You can learn a lot about what types of deals to look for by having a good mentor you can confide in. For instance, higher dollar deals aren’t always the best option as they may take longer to close, rehab and ultimately sell.
Bonus Tip: Choosing the right lender can make a world of difference too! Catalyst Funding is a Houston, Texas area hard money lender you can trust. We maintain relationships with leading investors, contractors and real estate associations in order to give our customers a leg up in their real estate investment businesses.