Are you interested in becoming a real estate investor? Do you not know where to start in order to learn real estate investing on your own? This article might be a good place to start.
To learn real estate investing on your own, you should first know what are the most important aspects that you need to learn about as a beginner real estate investor.
The real estate industry is an ever-expanding one, which means that there are always new things to learn and new rules to follow.
However, if you’re trying to learn real estate investing on your own, you might find yourself lost due to the sheer amount of information that you will come across.
For this reason, I have compiled a list of the most important aspects to learn real estate investing on your own, as well as some of our articles about these topics which you can use to begin your learning journey and, eventually, become a professional-grade real estate investor.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
Learn Real Estate Investing: What Aspects to Learn?
When it comes to investing in real estate, there are too many things for one investor to learn on his/her own. For this reason, and as a beginner investor, you should focus your learning energies on the aspects that are most relevant to you.
This includes investment strategies that are viable for beginner investors, basic aspects such as the different types of properties, and the different rental strategies, as well as the more advanced aspects like calculating the return on investment and the different metrics to use.
So, here’s a list of the general aspects that you should focus on in order to learn real estate investing:
Learn: Investment Strategies
In real estate investing, there are several investment strategies that anyone can choose from.
However, some of these strategies might not be a wise choice for beginner real estate investors, as they require more info and insights about the different markets in order to pull them off.
If you’re a beginner real estate investor, then you should stick to beginner-level investment strategies. These include:
These strategies are usually the most commonly used by beginner investors, as they can be easier to execute and will typically have a lower level of risk than the other more advanced strategies.
Learn More: Top Six Real Estate Investment Strategies
Rental strategies, in particular, are a top choice for beginner investors as they are the easiest to manage, to plan, and to execute, while still generating a very good return on investment in the process.
There are two main rental strategies that are being used in today’s real estate investing market: long-term rentals (also known as traditional rentals) and short-term rentals (such as Airbnb or VRBO rentals).
Also Read: Long Term Rentals vs. Short Term Rentals for Beginner Real Estate Investors
Learn: Types of Properties
In addition to learning about the different investment strategies, beginner real estate investors should also learn about the different types of properties in the real estate industry.
Most investment strategies are usually used with certain types of properties that are most suitable for them.
However, some types of properties can be used for all sorts of investment strategies, so it’s important before you learn real estate investing that you learn about the different types of properties in order to know how you can use them for making money.
Also, there are two elements to be considered when talking about the types of properties in real estate. There are property classes and there are property types. These can include:
Property Classes
- Residential real estate
- Commercial real estate
- Industrial real estate
As a beginner investor, you should only be concerned about residential real estate.
Property Types
- Single-family homes
- Multi-family homes
- Condos / Coops
- Townhomes
- Vacation rentals
- Luxury homes
- Others…
As a beginner investor, you will want to stay away from both multi-family homes and luxury homes, as these can be much more expensive and require more advanced investment strategies in order to generate profits.
Learn: Real Estate Investment Analysis
When it comes to the success of your real estate investment, one of the most important aspects that you need to learn is how to do a real estate investment analysis.
A real estate investment analysis can tell you whether investing in a certain property or market is a good idea or not. This is a crucial step that all real estate investors must do in order to guarantee the success of their investment and to not risk losing their money.
There are two elements for a real estate investment analysis:
- Real estate market analysis
- Investment property analysis
Both of these elements include more advanced real estate aspects such as using rental comps or calculating the return on investment metrics.
Rental comps are a great way that any beginner investor should be able to learn, and they allow investors to compare a large number of rental properties to identify the ones that are most worth investing your money in.
The return on investment metrics that are most commonly used in real estate investing are the cap rate and the cash on cash return. Both of these metrics are simple enough for beginner real estate investors to use when planning for the financial future of their investment.
Of course, there are other methods for calculating the return on investment, but these two metrics (the cap rate and the cash on cash return) are the most common and efficient to use for investing in rental properties.
Related: Understanding Cap Rate vs. Cash on Cash Return
Learn: What Tools to Use?
If you want to learn real estate investing and apply it with ease, then Mashvisor is the tool for you.
Mashvisor is a real estate analytics platform that was designed for beginner real estate investors to help them find, analyze, and compare rental properties for sale quickly and with ease. This allows beginner real estate investors to quickly become professional-grade investors and generate high returns when investing in real estate.
Whether you’re looking for a source of knowledge, or for a tool to apply your knowledge, Mashvisor can streamline the entire process for you and provide you with easy-to-use and easy-to-understand tools that you can use while learning and apply on the spot.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Bottom Line
If you’re looking to learn real estate investing on your own, visit our blog section and enjoy reading the thousands of articles that we have. From beginner guides to more advanced and creative strategies, Mashvisor’s blog is becoming one of the most popular sources of info for beginner investors looking to learn real estate investing and find success in today’s real estate market.