5 Smart Tips for First-Time Real Estate Investors

  • The importance of learning from others
  • Finding a stellar real estate agent
  • Finding a local property management firm
  • Protecting yourself with the right business structure
  • Alternatives to direct ownership

The importance of learning from others

As with any type of investment, one of the best ways to avoid common pitfalls is to learn from the experience of others. Teaming up with a trusted mentor who is already a successful real estate investor or joining a mastermind group with veteran investors are perhaps the two best ways to learn the ropes and avoid common first-timer blunders when getting started investing in real estate.

Find a stellar real estate agent

We just discussed that having a team and finding that mentor that will help you elevate your real estate mindset and game. But when you first start out, you need to also be soaking up and learning as much as you can about your local real estate market, trends, etc.

  • Driving good and bad neighborhoods to get a feel for your investment personality and where you feel comfortable investing.
  • Attending neighborhood home owner association meetings.
  • Connecting with builders and contractors to identify where the current flurry of activity is and where it’s going next.
  • Speaking with city officials to determine where the city or county plans to expand next.

Research Local Property Management Firms

If you’re like me and you have no interest in spending your weekends patching up damaged decks or your nights unclogging stopped-up toilets, you will absolutely, 100% want to find a quality property management firm.

Protect yourself with the right business structure

While some investors choose to hold rental real estate in their own names, establishing a separate legal entity for those holdings is typically the best alternative. The right business structure allows real estate investors to minimize their taxes, reduce their liability, and maximize the return on their investment.

Consider alternatives to direct ownership

If you are interested in real estate as an investment, buying an apartment building or rental home is not your only option.

Wrapping it up

As you can see, there is a lot to consider when diving into your first deal. From finding the right to mentor to doing your own research it can seem overwhelming. However, if you continue taking the right steps, like reading awesome articles like these, you will have the ropes down in no time. At the end of the day though if you do your research and decide being a landlord is not for you don’t forget there’s always alternatives to direct ownership.

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