Despite the looming pandemic, there were 6.5 million homes sold in 2020 in the United States. That number may topple 7.1 by the close of this year.
If you’re looking to step into a new career, start investing in real estate. It’s a growing business platform that has no intentions of slowing down anytime soon.
Selling real estate allows you to become your own boss. Real estate agents are independent contractors. That independence allows them to set their own work schedules and marketing hours.
Real estate agents are also in control of their own business growth. That means you get to decide the size of your client base.
Are you interested? Before you jump right in and start investing in real estate, there are a few things you need to know and do. Here are the basics of buying and selling real estate.
Before You Start Investing in Real Estate, Decide if You Have What It Takes
Real estate income provides a steady flow of cash, but you have to become someone’s landlord to get it. That part of the job isn’t as pretty as the green coming in.
As a landlord, you’re in charge of maintenance, repairs, and collecting rent. Landlords also own the task of finding reliable, responsible tenants. You could hire a property manager, but paying one full-time cuts into your real estate income.
Before you dive right in, take a property management course. These courses teach you the basics, like how to use a toolbox to perform basic home repairs.
Do You Have Enough to Get Started?
Getting started in real estate does require some cash flow, but not millions. You don’t need a large amount of money to launch a real estate career.
In fact, some people get hard money bridge loans to jump-start their real estate businesses.
The greatest concern is making sure you don’t carry a lot of debt. Debt siphons away money you need to keep on hand for marketing and property maintenance.
Pay off or pay down large debts like student loans, car loans, medical bills. Most importantly, maintain 20% of your income in a savings account at all times. Doing so allows you to have cash on hand to purchase other properties or sell properties you no longer want.
Option to Buy or Finance?
Depending on your investment goals, you have to decide if it’s good for you to buy or finance. Buying relieves you of mortgage debt and puts you in a position to generate immediate cash flow.
If don’t have hundreds of thousands sitting in an account, financing is a viable option. You’ll need to sit down with an account to crunch numbers to find out how to get a good return on your investment.
Buy an Investment Property
If you want to start investing in real estate, now is the time. Real estate investing helps you achieve your dream of becoming your own boss.
Are you interested in other ways of earning income on the side? Take a look at our business guide for unique ways on how to start your own business.