Real estate investing can be your best way to build passive income, or reach your financial freedom, many have built wealth with real estate while it is a great way for some people to make extra income every month. Knowing how to start investing in real estate for beginners will help you to create wealth .
There are several ways to make passive income and real estate investing is one of them, it can be done either full time or part-time, all you want is to earn, it may be your primary source of making money or make it be the secondary source of your income.
If you want to know how to start investing in real estate in Nigeria, I will journey with you, so that you don’t walk alone. Almost all rental properties in Nigeria are owned by individual real estate investors and that may be the reason why you need to have yours too.
Wait, real estate isn’t for everyone, why do you want to venture into it, should you get into real estate investing? These and many more questions you need to ask yourself before your final decision to invest.
If you want to know how sweet real estate is, ask investors who are enjoying the pay, I must tell you real estate is a good investment worth trying, I am not doing anything to lure you but every advocate of real estate said it is one of the best ways to make money with a high return on investment.
If you love learning, hunting deals, analyzing properties, and working with a team of people, real estate might be good for you, it is a better and good strategy for building wealth.
If I have the chance to learn how to start investing in real estate every day I will keep doing it without looking back.
- 1 How to start investing in Real Estate for Beginners
- 22.214.171.124 Step 1: Start learning and never stop
- 126.96.36.199 Step 2: Set goals
- 188.8.131.52 Step 3: Choose a real estate investing method
- 184.108.40.206 Step 4: Decide your start-up capital and start saving
- 220.127.116.11 Step 5: Make a plan
- 18.104.22.168 6: Build a team
- 22.214.171.124 Step 7: Analyze Deals and Buy Your First Property
- 126.96.36.199 Step 8: Manage Your Property
- 188.8.131.52 Step 9: Promote your Real Estate Brand
How to start investing in Real Estate for Beginners
The fact remains, if you jump into real estate without prior knowledge, you may jump out, to make it short, planning and studying go a long way to make you successful in real estate investing, if you want to learn fast here are some quick steps to follow, it will help you build your real estate portfolio fast.
Step 1: Start learning and never stop
If you don’t want to bite your tongue over the decision you made, you need to learn to avert mistakes that may cost you money. It is good to learn from experienced investors.
Read books on real estate investing, listen to podcasts, there are other several channels to learn, start networking with other investors to tap from their well of knowledge because they have gone before you in the business, it will help you a lot.
Step 2: Set goals
I think to my own best of knowledge when you don’t have a goal for your real estate investment you are wasting your precious time. Knowing your goal will help you with what you want and focus on It.
Your go may include starting a real estate business full time or part-time, likewise, you may decide to have a team or not. It gives you a clear vision of your business.
Write down your long-term and short-term goals for your real estate investing business.
Step 3: Choose a real estate investing method
Decide on the strategy you think is going to suit your needs, as an individual investor, you have several strategies to jump-start into real estate investing.
Some to consider are highlighted below, choose what goes in line with your goals and work along with it.
Single-Family and Multi-Family: Buy & hold
Vacation Rentals: Buy & hold
Step 4: Decide your start-up capital and start saving
Your approach to real estate investing determines the money you will need at the starting point if you want to go with crowdfunding or Wholesaling you may not need any upfront capital while if you choose to start with house flipping you may need 100% upfront.
The type of investment you want to venture into in the real estate space, determine the money you need to save for your real estate investing business, Once you know the total sum of the money you are going to need, you may want to start saving money to kick start your journey.
Saving for your first rental property could make you more Frugal as you need to cut expenses and keep saving more towards your real estate investing business.
You can get a new side hustle, raise funds from friends and family or sell your old stuff to get money for the real estate business.
To speedily up your journey you can partner with other investors, it helps you reduce the start-up cost.
Step 5: Make a plan
All the aforementioned stages need to be executed here, without you making a plan your strategy and saving goals could be a waste of time and resources.
creating a business plan is what you need to make a plan and it is necessary before you think of buying your first property, this will equip you with the right mindset and set you up for success.
Some of the things you should consider in your business plan should include but not be limited to your:
Draft and let it be comprehensive enough to include everything you need to make your real estate investing a success
6: Build a team
Succeeding in real estate investing requires you to build a team, many new investors when starting up like to do it all alone but according to experienced investors views, it works magically when you build a team with the right set of professionals.
Those who are to be in your team should include the following:
Real estate agent
Step 7: Analyze Deals and Buy Your First Property
We know you have taken your time to know about the trade, you have set goals and have your business plan written with every step detailing how you want to achieve every aspect of your real estate investing business, well done, you have done well but it is not over yet, you need to learn how to analyze deals and buy your first property.
You need to know how to negotiate with sellers, do a home inspection, appraisal and choose your financing option.
Step 8: Manage Your Property
Here is where the real work begins and the learning process continues, the books you read, the podcasts listening to, the lengthy conversation you had with mentors are needed to help you increase your profit.
To manager your property, you can self-manage or get a property manager and scale up your business.
Step 9: Promote your Real Estate Brand
Market your business through traditional and online marketing medium, create marketing strategies to sell and acquire more deals and keep repeating the process to expand your business.
Real estate investing is simple to learn but to be successful at it, you must not rule out any of the steps we discussed in this article and note that Networking is among the powerful tools you need to explore if you want to be profitable in the real estate investing business.