Investing in Real Estate: Advice From Experts

March 18, 2018
Posted in Insights
March 18, 2018 DCT Capital Fund

The real estate market is constantly evolving, so how is anyone supposed to know how to begin investing in it?  The Forbes Real Estate Council recently shared their advice on the best ways new real estate investors can succeed, but we think these tips shouldn’t just be for newbies. In this constantly evolving business, it doesn’t matter how old you are, now and then you need a little help to stay on top. Here’s what experts in real estate recommend to those looking to invest in real estate.

1. “Buy your property to live in first, because financing is easier (less down payment and better interest rates), you need a home to live in, you get the best tax write-offs and then you can move up to a new home in a year or two.” – Jennifer Myers, Agent Grad School and Dwell Residential Brokerage

You don’t have to blow your savings on a new place, begin where you are. Buy a home that you can fix up while you live in it and in a few years turn it into an asset. You can also get some great tax benefits by owning the home you live in instead of renting.

2. “You can make more money with less risk by being patient and using your own cash.” – Engelo Rumora, List’n Sell Realty

Real estate investment is a long-term investment and may take a long time to pay off. Use your own capital if you want to steer clear of debt.

3. “Define narrowly your core and get amazing at it… Don’t try to do it all!” – Mark Bloom, NetWorth Realty

Trying to invest in all areas of real estate is going to make your investments suffer. Build your real estate education in one area and don’t divide your attention too much if you want to be successful.

4. “Do not invest with your emotions. Research all the costs of an investment… Be rational about your own risk tolerance and consider these costs as potential impacts on your cash flow.” – Chuck Hattemer, Onerent

While a certain amount of investing in real estate is gut-driven, you still need to think critically before investing.

5. “Only work with people you know and trust… be fully confident in the critical people you will rely.” – Garratt Hasenstab, The Mountain Life Companies™

If you don’t trust your team, then you will never be able to invest confidently.

6. “Consider investing in properties that you can profit from as rentals, rather than just a flip and sell.” – Sarnen Steinbarth, TurboTenant

You can often get more out of rentals now than in flip and sells. Renting a property is simply a longer-term investment than selling, but before deciding to lease remember that the owner, not the tenant is responsible for any repairs needed.

7. “All markets are cyclical… evaluate what the market is doing before buying anything. When your research tells you that you are buying low and the future market outlook is positive, buy.” – Mario Dattilo, Real Estate Acquisitions USA, Corp.

Market cycles are one of the best ways to know when to invest and if it will turn out positively for you.

For more tips and tricks check out the full article at Forbes.com.

 

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