Investing in real estate is a great way to reach you’re your financial goals. It can be a relatively complicated investment sector, though, as there are many options and potential pitfalls, expert Corey Shader says.
It’s vital to know what you’re doing before you jump into the fray, though, as it can be easy to make the wrong choices if you’re not prepared. Below are three tips you should follow if you want to find your way to success in real estate investing.
1. Find a Niche
One of the great parts about real estate is there are so many different ways in which you can invest. At the same time, this is also one of the downfalls of real estate investing, as it can be easy to lose focus.
While all real estate is connected in some way, the various sectors can be quite different from each other. For instance, commercial real estate is a much different market than residential real estate.
A good place to start real estate investing is to find a niche for yourself. Ask yourself what you’re good at and what you’re passionate about, and then focus in on that.
If you’re handy and are passionate about improving communities, then you might decide to flip houses, for instance. If you’re looking for more passive income on a consistent basis, you might consider the rental market.
2. Start Small
Real estate investing is trial by fire. You learn a lot simply by trying something, and then refining your process as you understand what mistakes you made the first time around.
To this point, it’s important to understand that you may not succeed right out of the gate. You may need to experience a failure or two before you can refine your investment strategy to be successful.
As such, it’s very important that you start out small. Don’t put all of your eggs in one basket at the beginning. Only take a small percentage of the total money you have set aside for real estate and invest it in your first project.
This way, if that first project fails, you aren’t completely out of money. If this happens, you can consider that lost money tuition toward the school of real estate investing.
3. Have Sufficient Funds
Speaking of money, Corey Shader says it’s important to understand that real estate investing can be expensive. If you’re going to be buying and flipping properties, for example, you’ll be outlaying funds not just to purchase a property but to pay for renovations.
Most homeowners know that unforeseen costs arise all the time during home renovation projects. This fact can become amplified when you are investing in real estate rather than just purchasing a property to live in.
A good rule of thumb is to have at least 30% to 50% more than you think you need for a project. So, if the estimates for the work needed to flip a property come back at $20,000, for example, make sure that you have at least $26,000 to $30,000 on hand, just in case any unexpected projects pop up.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.
