How to Become a Solopreneur in Real Estate Investing
It may seem as though the only way to break into real estate is to start off with millions of dollars, but this is far from the truth. It’s very possible to get into real estate investing with comparably little money. Of course, you will need to start off with a reasonable amount of capital, but it doesn’t have to be an overwhelming amount.
With the right focus and a bit of luck, there’s tons of money to be made in real estate.
Where Do I Start?
You start small, and you start with research. It’s a good idea to do research on what neighborhoods in your area (or wherever your target is) are a bit run-down but look to be up-and-coming. If you can find such a neighborhood, drum up a few thousand dollars and then see about getting an FHA loan. (Keep in mind that with an FHA loan, you only need to put 3.5% down on the initial purchase.)
If you’re trying to keep it as economical as possible, it’s a good idea to start by investing into a property that you yourself can live in at the same time. This doesn’t mean you need to buy an entire apartment complex: a duplex can work just as well. This will allow you to live very near rent-free, and if you live in the building you won’t need to hire a superintendent.
Once you get your first property, it’s important to keep focused and then keep reinvesting. While real estate investing can provide an often-astonishing amount of revenue, you want to ensure that your current property stays in top condition and also be looking around for the next property to buy. It’s a good idea to go a little bit larger if at all possible. So if your first purchase was a duplex, your next purchase may be a 10-unit building. Just keep on reinvesting.
What Skills Do I Need?
The most important skill is knowledge of the market and patience. Again, a lot of success has to do with owning the right building at the right time. Doing research on those up-and-coming neighborhoods can pay off big time.
Additionally, if you’re handy that doesn’t hurt, since the more you can do to maintain your own properties, the more frugally you can keep the operation. Of course, once you get to four or five properties you may need to delegate, but once you get to four or five properties you can afford a handyman.