GETTING STARTED WITH REAL ESTATE INVESTING: STEPS FOR BEGINNERS
Everybody knows the basics of investing, right? Buy low, sell high? The concept may be a simple one: real estate often appreciates over time, giving opportunity for profit. Still, it may be easier said than done to newcomers. Up-and-coming investors looking to turn real estate investing into a dependable source of income need to seek know-how—and most importantly, access. Let’s look at some of the active and passive ways investing can work and see just how important access can be for a new investor.
Investment Opportunities In Real Estate
#1 Getting Started
One place where knowledge meets practice is Auction.com. Learning what opportunities exist in the areas you are interested in can be one of the best ways to get started. First, search for properties and conduct due diligence to see what you need to do to take the next step. You’ll see properties that can generate income passively like rental income or become more active investment strategies like flipping.
#2 Types of Active Real Estate Investing
Flipping (Real Estate Trading)
“Fix-and-Flip” is a term used to describe how properties are bought — sometimes in “fixer-upper” condition — rehabbed, and then sold for marginal gross profit on a short timeline. Also termed ‘flipping’ or real estate trading, this strategy is effective because it requires the investment of time and effort, which opens the potential for larger profit margins.
Rental Properties
Building a rental property portfolio is a great way to earn dependable income. Also termed “buy-and-hold,” which is when individuals purchase and rehab a property as needed and then “hold it” and rent it out. As the owner, monthly rent payments can add up quickly. A lot of real estate investors choose to build rental portfolios in addition to investing in other facets of the real estate industry. It goes without saying that the upside can be substantial—and liquid; the downside, in short, is being on the hook for property maintenance, as well as any risk associated with managing tenants.
Homeownership
The process of owning a home can be rewarding and lucrative. It offers the owner the chance to benefit from the property’s growing equity and available tax incentives. Buying a second home or a vacation home takes the benefits to the next level. With properties often appreciating over time, buying a second home could be considered a relatively low-risk investment, and a way to grow capital outside of the stock market.
#3 Find Exclusive Access
It all comes down to finding your next investment opportunity. Platforms like Auction.com that focus on the buying and selling of Foreclosure and Bank-Owned properties fall into this category. At Auction.com, investors gain access to exclusive property deals that may not be listed on the MLS. Our properties are often discounted from market retail, which only helps boost investors’ profit margins.
Real Estate Investment Online Platforms
Platforms like Auction.com that focus on the buying and selling of foreclosure and bank-owned properties fall into this category. Platforms like ours give investors access to exclusive property deals that are not listed on the MLS. Our properties are often discounted from market retail, which makes them great investment opportunities for real estate investors.
#4 Know Your Market To Make Money
As we already mentioned, it all comes down to cashing in on property value appreciation. However, as you’ve learned above there are many other ways to profit from real estate, such as fixing and flipping or owning rental properties. Getting informed about the unique dynamics in your market is key, and Auction.com helps investors start off on the right foot so they can make calculated investment decisions.
#5 Key Takeaways
It doesn’t matter which investment goals you hold. Whether you are a buy-and-hold investor, fix-and-flip, or other, profit is the ultimate goal.
If you’re still uncertain about where to begin, start by visiting Auction.com and browse our selection of Foreclosure and Bank-Owned property investment opportunities in your market. Then create a free account, download the Auction.com app, and start saving, tracking, and buying your ideal properties at auction.
