skip to Main Content
realestates-tips

23 Smart Real Estate Investing Tips from Successful Investors

1. Find rental properties in emerging neighborhoods

“Rental properties represent a great way to get involved with real estate investments. Emerging neighborhoods offer growth potential and tax incentives for buyers.

2. Diversify your investments

“It’s commonly preached that the best real estate investment is the one in your backyard. While there is merit to understanding the area in which you’re investing, I believe that you’re truly limiting your profitability potential by only considering a small geographic area.

3. Don’t over-rehab

Some high-end houses have to have the nicest countertops and fixtures. Lower-end houses need to look nice and modern but don’t need the most expensive everything. It’s OK to budget. It’s OK to go with the middle-of-the road fixtures.”

4. Don’t over-leverage yourself

“You can be very successful for a long time and still go broke if every rental is mortgages to the hilt. If you keep some of your rentals free and clear and some of them financed then you’ll have a good mix of safety and still stretching your resources.

5. Look into single-family rentals

“Single family homes are your safest bet for attracting the correct tenant. Everyone would love to live in a house. Some people just cannot afford to, or do not want to own. The single family home historically has over the last hundred plus years always appreciated.

6. Do your homework before listening to paid advisors

“In many cases, your trusted and paid advisors (broker, wealth manager, tax accountant, etc.) may suggest you avoid real estate in your portfolio altogether. They generally give the same tired reasons that it’s ‘illiquid’ or ‘too management-intensive.’

7. Nip maintenance issues in the bud before they get bigger

“One thing that’s helped me quite a bit is writing a bi-annual walkthrough into the lease agreements. This is mainly to ask the renter if there’s anything they’re noticing that needs to get fixed.

8. Join a local networking group

“There are literally thousands of REI (real estate investing) groups all across the country. Join one or two. Participate in a few. Find the ones that have the people and topics that you are interested in. 

9. Leverage the experts

“Investing in real estate has a lot of moving pieces. When you’re first starting off it is critical that you leverage experts in each area of the project to ensure success and minimize mistakes.

10. Get to know your market

“When investing in real estate, it is important to learn about and become an expert in your selected market. Being well informed on the current trends, including any decreases or increases in the average rent, income, interest rates, and even unemployment/crime rates will allow you to recognize the current market status and plan for the future.

Back To Top