Real estate is a great way to invest in your future. But it can be tricky to get started if you don’t have a lot of money in the bank.
1. Build an Emergency Fund
One of the first things you’ll want to do if you want to invest in real estate is start building up your emergency fund. This will help you cover unexpected expenses like roof leaks or appliance repairs. It will also give you a cushion in case you lose your job or have a major medical bill that comes out of nowhere.
2. Find a Mentor
Another way to get into real estate is to find an experienced agent who can be your mentor. They can teach you the ins and outs of this business and give you advice on how to grow your career.
3. Select a Brokerage
When you choose to work as a real estate agent, it’s important to pick a brokerage that aligns with your goals and values. This means choosing a brokerage with good company culture, a commission structure you can afford and opportunities for mentorships.
4. Promote Yourself Online
Real estate agents need a strong online presence in order to attract new clients and gain referrals. This includes a website and a social media presence. It’s also a good idea to join a real estate agent network and create a real estate blog, so you can share your expertise with other agents in your area.
5. Take Advantage of Tax Breaks
There are plenty of ways to save on taxes when you invest in real estate, from using a 1031 exchange to investing in real estate trusts (REITs). You can also reduce your tax liability by donating or selling real estate that doesn’t fit your current financial needs.
6. Use an Investment Platform
There are several platforms that offer real estate investments, and they can make it easier to get into the market without a large sum of money. These companies vet investments and make sure they’re worth your time and effort. They can even handle the paperwork for you if you’re a novice.
7. Wholesaling and Fix & Flipping
A popular method of investing in real estate is wholesaling, which involves finding property that’s under contract and selling it to a buyer that’s looking to fix it up. These types of properties can be a great way to get started with real estate and earn a profit quickly.
8. Become a Rental Property Owner
If you’re interested in getting into real estate investing, but don’t have enough cash to purchase a piece of real estate, try buying a rental property instead. These properties can be a good way to start, because they don’t require as much down payment as a traditional property would.
9. Buy Land
You can also buy land to develop and sell, as long as it meets local zoning requirements. It’s an especially good option if you’re looking for commercial space or a home base for your own business.