Investing in real estate is unlike other standard assets and can be difficult to break into as there is no obvious starting point. Unlike stocks and bonds, real estate investing has no specific protocol that investors can use as a guideline. Just because investing in real estate is unchartered territory for you doesn’t mean that you should abandon ship. All you need is some guidance and you will be on your way to financial freedom. Yet even some of the best real estate podcasts available aren’t upfront about divulging everything they know. Here are four secrets to success that even the best real estate podcasts won’t tell you.
4 Secrets Even the Best Real Estate Podcasts Won’t Tell You
1. Crisis Is an Opportunity
The United States is a complex and diverse country, and this applies to the economy, too. It is no secret that a significant portion of the population does not have any savings (the crisis), presenting real estate investors with a great deal of opportunity to step in and serve the population.
Since buying a home requires a significant down payment, which a part of the American population can not afford right now, a good chunk of people will not become homeowners soon but will still need housing. From a real estate investment perspective, the rental market and the opportunities within will be lucrative for investors.
2. Choose a Market Close to Major Cities
The best real estate podcasts always advise the same thing: invest in major metropolitan areas. While there are lots of good investment properties in big cities, you are missing out on opportunities if you ignore suburbia. Investing in suburban properties can be lucrative if you find a location that has a good economy with job opportunities, temperate weather, cultural offerings, and is less expensive than other nearby cities.
Finding long-term tenants will be a breeze, although you may have a smaller prospective tenant pool to choose from at first. When exploring suburban investment areas, avoid the trap of falling in love with your native geographical area. Remember, this is a real estate investment, not a place where you will live. Evaluating investment properties with your head, not your heart, will pay off in the long-run.
3. Find a Professional Investment Counselor
In the same vein as the previous secret, choose a professional investment counselor that is also not partial to any specific region or asset. When searching for a real estate investment advisor (REIA), only invest with professionals willing to stay with you for the long-haul. Look for investors willing to buy where they think you should buy. When a professional investment counselor puts their money where their mouth is, they get paid for producing results; not just dispensing advice.
4. Always Invest Directly
The best real estate podcasts never grow tired of encouraging potential investors to go through intermediaries, likely because they are being paid by the said intermediary. However, when you go through a third-party, you give up a significant amount of control over your investment and leave your financial future in the hands of an entity that is not required to act in your best interest.
Bypassing the brokers, fund managers, and corporations and investing directly will ensure you maintain control over all aspects of the strategy. Whether your goals are to retire early, cut the strings from your corporate 9-5 job, or build a full-time career, always invest with your goals in mind and abide by your risk tolerance and investing style.