Real estate remains one of the most popular investment options for a wide variety of investors. Whether you’re interested in something optimized for cash flow or long-term appreciation, for short-term profitability or long-term stability, the real estate market has something for you. Besides, your mentor could be an investment app. For beginners, the standard mobile app has excellent ease-of-use. Advanced mentors can find mobile apps with a professional-style experience. You will understand how to invest now in the best way.
The trouble is, to achieve the greatest possible success as a real estate investor, you need to have experience. The more years you spend buying, selling, and managing properties, the more knowledge and experience you’re going to acquire, allowing you to make better choices in the future.
So how can you get started in real estate investing with no experience?
You have several options.
Option 1: Hire a Property Management Company
First, consider hiring a property management company. Property management companies exist to make it easier for people to manage rental property. Once you have a rental property in your portfolio, you can hire a property manager to handle all the day-to-day responsibilities associated with that property.
For example, they’ll typically take care of things like marketing the property, screening tenants, collecting rent, following up on late payments, issuing repairs, conducting maintenance, and even overseeing evictions (if necessary). Accordingly, you won’t need any experience as a landlord, since you won’t be directly handling most of the responsibilities.
Even better, many property management companies take an active role in helping their clients. If you’re new to the world of real estate investing, you can often connect with a buying agent within the company who can help you find the right investment property for your initial purchase.
Throughout your tenure as a real estate investor, you can rely on your property management company to be a helpful advisor. And if you ever decide to branch out and invest or manage property on your own, you can.
Option 2: Get a Mentor
If you’re interested in learning more directly, consider finding a mentor in the real estate world. Your mentor will serve as a teacher and as a guide as you learn more about real estate investing – and they’ll also provide you with support along the way. Finding a mentor can be tough, but if you regularly attend real estate investing networking meetups and engage with the community, eventually you’ll find a viable candidate.
Shadow your mentor as they search for properties to invest in and/or manage their current assets. Take notes and ask lots of questions. When you’re ready, you can look for a property of your own to invest in and ask your mentor what they think of it. It’s like having a direct line to someone with more knowledge and experience.
Option 3: Work With a Partner
Your next option is to work with a partner in the real estate world. Together, you and your partner will review potential purchases, pool your money, take out a loan together, and actively manage the property together.
This is a beneficial option for several reasons. For starters, you won’t be the sole decision maker; you can rely on someone else’s experience and knowledge to direct you. You also won’t face as much financial risk, since you’ll only be responsible for half the money (depending on the arrangement). The only caveat is that you have to choose the right partner; if your partner is as clueless as you are, or unwilling to work, this option can easily backfire.
Option 4: Invest in REITs
If you love the idea of investing in real estate, but hate the idea of owning a physical property of your own, consider investing in real estate investment trusts (REITs). These financial creations are essentially companies that invest in and operate income-producing real estate. You can buy and sell shares of ownership in a REIT the same way you might buy or sell shares of stock or exchange traded funds (ETFs).
There are a lot of advantages to investing in REITs. You’ll get direct exposure to the growth of the real estate market. You won’t have to put much of your own money in (if you don’t want). You’ll automatically tap into a diversified portfolio (in most cases). And you won’t have to worry about liquidity since you can sell at any time.
Of course, if you invest in REITs, you won’t be able to get much experience with direct real estate investing. You might also see a lower rate of return than if you bought, fixed up, and rented out an income-producing property of your own.
Most of these options aren’t just an opportunity to invest in real estate with no experience. They’re also an opportunity to gain that experience, in one form or another. Review your real estate decisions and investments carefully; learn from your mistakes and double down on your successful strategies. The more you’re willing to learn from your time as an investor, the better your results will be in the future.