You do not have to have a six figure salary to start investing in real estate. On the contrary, it is possible to get your start investing in NJ real estate
with very little start-up money. Even college students are taking an interest in owning properties. Real estate investment has the potential for higher returns than other investments with an average annual return rate of 11.42% compared to 10.31% with the S&P500. With real estate investments, you have control over your assets: your knowledge and hard work directly affects the value of your assets. Real estate investment is a great way to grow your assets no matter where you are starting from.
While you don’t have to be well-off to get your start in real estate investing, you do have to have a well thought-out and realistic financial plan—and stick to it! Part of this plan means understanding the commitment you are making. Real estate investment is not a “get rich quick” scheme. This is a business investment and it will take time, money, energy, and a lot of work to see a return on your investment. Create a business plan before you start. The plan should include how many properties you wish to buy, the time frame for these investments, and the cost of these investments.
In order to make a sound business plan for your real estate investments, you will need to educate yourself. Before you spend time and money on an expensive class, do some research online. There are a plethora of free online guides, podcasts, blogs, and articles designed to provide essential information to those breaking into the world of real estate investment.
Another way to educate yourself is to talk to those in the know. Make connections with the people that are already successfully doing what you want to do. You can find these people locally or online through different real estate forums. These experts can give you invaluable first-hand knowledge
of the industry and help you make other connections with vendors, contractors, and other businesses in your area. All of this knowledge will help you find your niche in the market.
The two biggest things you need to know are types of property and location of property. You also have to know how much of a financial investment will be required, as well as the time investment that different types of properties will require. Additionally, the ability to evaluate a locality or neighborhood and make an informed assessment of its potential value is an invaluable skill in this arena. An important thing to remember when making these assessments is to buy where the numbers work out—which means understanding your financial limits and sticking to your business plan.
It is imperative to remember that, like with any business, there are risks. Expect challenges and set-backs because every property comes with its own set of problems. Real estate investment is a business of constant learning and adapting to new and ever-changing variables, which is what makes it such an exciting investment.
The most important
thing you can do is get started! Even the most well laid plans will go nowhere if you never act
. Do the research, make your plan, and take the first step towards building your financial future