Top Seven Real Estate Wealth Strategies

Real estate is a great way to build wealth and create profitable investments. Both new and seasoned real estate investors know the importance of learning and growing their skills to be successful. There is no one right way to invest in real estate, and you can try a variety of strategies to determine what works best for you. Keep reading for the top seven real estate wealth strategies.

 

1. Evaluate before you invest.

It can be tempting to jump into a real estate investment, especially if the price is low. Whether you are investing in real estate properties to rent or flip, there are key pieces of financial information you must know. Properly calculating your costs can help evaluate your property’s potential income.

 

Utilize tools like profit calculators to ensure that you account for all costs and fees involved in a property. Have a solid grasp of mortgage payments, down payment requirements, rental income needed to cover your costs, cash flow and other relevant metrics.

 

2. Don’t just rely on the sales agent’s pitch.

During the pitch, the sales agent is obviously trying to sell you on a property and investment. While it is easy to be drawn in by the agent’s energy and enthusiasm, it is important to do your own homework. Investing in a property creates a partnership with you and the sales agent for some time, and you have to be ready to commit to the property and agent.

 

Ask questions throughout the pitch and after, following a prewritten checklist of important questions and concerns. Analyze comps to learn the truth about the area and type of property you are interested in. It may sound negative, but you should try to poke holes in the sales agent’s pitch to learn the truth about the property.

 

3. If it is too good to be true, it probably is.

A rock bottom sales price could be due to a shifting market, but it could also be a sign of underlying issues. Before you jump into a property head-first, take a realistic look at the big picture. Have an open mind, so you can catch potential red flags before being swept away by a deal that is too good to be true.

 

If an agent seems shady or you have a knee-jerk reaction to off-putting actions, it is usually best to trust your gut. A property that is priced extremely high or extremely low compared to comps can indicate problems. If the history of the property is unclear, important information may not be readily available. Keep all of these red flags in mind when analyzing the potential of a property.

 

4. Earn, grow, and protect your money.

Protecting your investment requires careful planning. You should plan out your business, and hire professionals if you do not feel confident to handle everything yourself. Before you start executing on any area of your business, create a clear strategy.

 

Having a well-documented plan can help you attract investors and gain trust. It can also provide a blueprint for your investment. As issues or potential costs arise throughout the project, you can return to your plan and modify as needed.

 

5. Make your money work for you.

Relying on one strategy is the equivalent of putting all your eggs in one basket. If the strategy falls through, you are left facing a big loss. If you want to make your money work for you, incorporate multiple real estate strategies in your business. There are countless options available, including rental properties, house flipping, and more. While you can certainly focus on the area that you excel in, it is wise to have additional strategies in the work for backup.

 

6. It’s not just about how much you make.

Smart real estate investors focus on much more than the selling price or income of a property. It is best to pay attention to how much money you can actually keep, instead of just how much you make. This process includes tax strategies, like how much you will be required to pay in property tax, income tax, etc. Research your local tax laws and consider hiring a tax professional to learn about all of your options and properly account for your take-home profit when all is said and done.

 

7. Do not go at it alone.

Whether you are a first-time real estate investor or a seasoned pro, have a team. You should surround yourself with those that you want to be like, relying on mentors for advice, support, and encouragement along the way. Join real estate clubs, local REIs, and other organizations to grow your network. Through these connections, you can learn valuable information about your local market, connect with trusted contractors, and reach potential investors and buyers.

 

Join the Keystone Funding Network

The Keystone Funding Network, offered by Wealth 212, connects real estate investors with a team to support them. With expert staff, including legal, accounting, realtors, flippers, and coaches, you can grow your network and receive guidance for your next project. The Keystone Funding Network provides everything you need for successful real estate investment.

 

Learn more about the Keystone Funding Network today.