What are the Basics of Real Estate Investing?

by Robin Tanner 01/26/2020

Image by 3D Animation Production Company from Pixabay

You may hear someone say that you should get into real estate, but truthfully, it isn’t for everyone. While real estate investing can be a lucrative opportunity, if you don’t know what you’re facing, things can quickly get out of hand.

Why Real Estate Investing?

Ultimately, the goal is to invest in something that will give you a return, or profit. In order to be successful, you must understand the logistics and the risk. It’s sort of like Monopoly – you buy properties, improve the land to collect rent, avoid bankruptcy and buy more properties. Just because the concept is simple doesn’t mean that’s how things will flow. The consequences of making bad decisions can be brutal, so being properly prepared is key.

Here are a few tips to get started:

  • Consider real estate investment trusts (REITs)
  • This helps get your feet wet without the physical property. Consider these like mutual funds, but they are companies that own commercial real estate. A common investment in retirement, these usually pay high dividends. If you’re new at this, it’s best sticking to publicly traded REITs, which you purchase through a brokerage firm.

  • Rental property
  • Consider buying properties and leasing them. You may also want to consider occupying your property and renting out rooms or units in a multi-unit building. By house hacking, you can purchase a property with up to four units and still qualify for a residential loan.

  • Online platform
  • An online real estate investing platform connects real estate developers to investors who want to finance projects through debt or equity. These usually have monthly or quarterly distributions, but you pay a fee and have a large amount of risk. You may also have to be an accredited investor, but there are alternatives, like RealtyMogul and Fundrise.

  • Flipping properties
  • You’ve heard and seen it on TV. Purchase a property that needs repairs, fix it up and resell it for a profit. Although HGTV and DIY Network may make it look easy, it’s a lot harder than it looks. You don’t know how much the repairs will be, and you’re initially on the hook for paying a mortgage. If you live in the home while fixing it up, that could save some money.

  • Renting rooms
  • Consider this the alternate version of Airbnb. You rent certain parts of your home (a room) and reap the benefits. This way, you don’t have to commit to someone long term and you can control how things work.

    It’s important to go into this with a clear head and complete understanding of your finances and the risk it may take. Having a conversation with a real estate broker and other professionals in the industry can help point you in the right direction. The location of your investments will also play a role in how much money you will have to spend. Take your time and find out everything you need to know to make an informed decision. Good luck!

    About the Author
    Author

    Robin Tanner

    Robin’s Mission Statement: I am here to help people realize their dreams!!

    Robin Tanner has lived in Benicia for over 30 years, and is very grateful to wake up every morning in this beautiful little town. She is your neighborhood consultant, not a salesperson. Because of this you will get all the latest information on schools, neighborhoods and about the town in general. She was a teacher in her past life, making her an expert educator. You can be sure she will help you make the best-educated decision possible when buying or selling your home.

    Her love of working with people and helping them find what they want and need, will make this a fun and exciting journey. She has a great team alongside her that can help with your FICO scores and loan approvals as well as helping cross any other bridge you may come to (Short Sales and Foreclosures). Her team helps everyone with all aspects of the buying and selling procedure, and will do what needs to get done to make this a positive experience.

    Robin believes that as part of her job she must continue to grow and learn. To achieve this goal, she is always taking classes to advance her knowledge of the Real Estate industry. You will be informed of all new information pertaining to any Real Estate.

    She lives passionately and adventurously and is so grateful for all the fantastic clients she has had over the years, many of whom have become great friends! When Robin isn’t working as your real estate consultant, she is enjoying the outdoors while boating, horseback riding or gardening.

    Areas served: Solano County & Contra Costa County

    Specialties: Residential Properties, Relocation, Luxury Market, Seniors Community,Ranch/Ranchettes, Land, Mobile Homes, Short Sales, Bank Owned, Industrial/Warehouses, Investment Properties, Residential Income

    Awards/Achievements:
    • Thomas R Stone Associate of the Year 2011
    • R.V. 'BUD' Stone Most Inspirational Agent 2012

    Education/Work Experience:
    • Real Estate Certification
    • Certificate for Early Childhood Education
    • Certificate for Medical Insurance
    • Pre-School & Elementary School teacher
    • Landscape Architecture

    Community Involvement:
    • Soccer coach
    • Little League coach
    • School Volunteer


    ROBIN TANNER
    Title: REALTOR® (707) 333-5604
    [email protected] English
    www.robintanner.com
    CalBRE #01509690