“Success usually comes to those who are too busy to be looking for it” – Henry David Thoreau
As is the case with the many investment fields, the real estate world will give you success if you give it hard work and dedication. As a matter of fact, you don’t need a fancy college degree or to take real estate classes to excel in it. What you need is hard work, constant self-improvement, and a whole lot of dedication to the craft! Donald Bren, Ted Lerner, and Barbara Corcoran. The names of real estate investing giants that every financial climber should know. What can these expert real estate investors give you? Well, my friend, it’s real estate investment advice.
Yes, good things do come to those who wait, but not for those who wait too long! If you’re interested in becoming a real estate investor, you must begin investing and you must begin investing now!
Here, we’ve gathered a list of the best advice given by real estate tycoons to be at your doorstep. All you must do is absorb these pieces of real estate investment advice and implement them within your business regimen. At the same time, try to bring your own twist to it by adding more of a competitive advantage to your business operations.
What real estate investment advice do expert investors always give?
Yes, you need to know how to make money in real estate and only go for income generating assets, but what else? Here’s a list of the best real estate investment advice we could gather:
Real estate investment advice #1
“Eliminate existing debt” – Keven O’Leary
This one makes perfect sense. You can’t start your real estate investing career by adding more debt to previous debts. What most successful real estate investors have done and still do, is eliminate existing debt. In return, you will end up improving your credit history and even lower your future mortgage rates.
Let’s assume you wish to buy a rental property. You will most likely, in one way or another, resort to a method of financing, and the most common one of all is mortgaging. When it comes to taking a mortgage, any lender will look at your credit history and base the decision on what you’ve done with your credit in the past. They will evaluate whether the credit risk is high or low and accordingly, accept or decline your mortgage application. Additionally, by having a high credit score, the lender will offer you competitive interest rates.
Related: Is It Ok to Be in Debt While Investing in Real Estate?
Real estate investment advice #2
“Spend time at a potential investment property before deciding to buy it” – Barbara Corcoran
As a real estate investor, you’re bound to make bad investment decisions every once in a while. However, Barbara Corcoran has found a bullet-proof method to ensure she’s making the right real estate investment. What she does is visit the location of the potential property at two different hours. The first one being in the morning before the residents leave for work, then between 9 pm – 1 am. Accordingly, she became capable of finding out what really goes on in that said building or neighborhood when residents are home from work. Last but not least, Barbara always advises young investors to do their due diligence and give it time. She’s constantly looking for the next best thing and not afraid to go for it when she does.
Real estate investment advice #3
“Your first deal will be the hardest, don’t quit” – L.D Stauffer
L.D Stauffer was not born rich. He found out that the path for him was investing in real estate. That being said, he stresses on the importance of your first deal in the real estate investment world. One can compare it to your first day at a new job or even the first day of school. The harder you try and the more mistakes you make with buying an investment property for the first time, the more you will learn. As a matter of fact, the first property purchase is what teaches you how things go in the real estate business in general and specifically in the US real estate market. Most importantly, he focuses on making decisions rationally and trusting the numbers in making investment decisions, not emotions.
Related: Are You Ready for Buying Your First Investment Property?
Real estate investment advice #4
“Get off the debt merry-go-round” – Ethan Roberts
Ethan Roberts wasn’t born rich either; he made himself when he started investing in real estate. Another successful real estate investor warning of the dangers of debt! He considers debt to be a never-ending cycle, which is true! One day you’ll charge a bill to a credit card, the next day you’ll fill gas with it. It literally doesn’t end. What most investors do is use cash as you’re more likely to spend less if you deal with cash transactions. If you wish to know how to start a real estate business, your first step is ending any standing debts or liabilities you have. Most importantly, you must stop adding more liabilities and start spending money when you have it, not before you do.
Real estate investment advice #5
“Don’t wait to buy real estate, buy real estate and wait” – Will Rogers
While this is an old quote, it’s a timeless one as well! Real estate investors have learned to utilize the buy-and-hold investment strategy. It offers many perks and you’re basically making money in your sleep. For any homebuyer or real estate investor, make sure to run the numbers and conduct a proper investment property analysis to ensure you’re getting your money’s worth out of a property. Go into the details of it all. Most importantly, using an investment property calculator helps you know the figures to assess and decide what’s best for you. Check out Mashvisor’s investment property calculator by clicking here.
Related: Buy and Hold Real Estate Is the Ultimate Investment Strategy: Here’s Why.
Always look for advice from people who’ve been there and done that! They’ve been through it, made the mistakes, and recovered from their costly ones as well. Therefore, trust your gut, follow the best real estate investment advice, and start real estate investing. The investments of today are the rewards of tomorrow!