Despite the challenges, real estate keeps itself as one of the most profitable industries. Property never depreciates in value, and there are a lot of agents gaining profits from buying and selling homes and commercial units. According to Luis Enrique Coll, a real estate expert, here are some real estate investment statistics:
- Residential real estate investing is in a boom because of the home flipping business
- Foreclosures can be brought in public markets, which make it accessible for others finding a home
- Some real estate agents who own properties for rental proved to be a billion dollar business
Given the benefits of real estate investment, many people are not sure about the basic principles in becoming an agent. In this post, we will be looking into Luis Enrique Coll and his guide for the basic principles you need to understand before getting into the real estate business.
Luis Enrique Coll’s Guide to Real Estate
1. Get educated, then get started
Real estate is a complex business, but it is highly profitable at any point in time. The best part about real estate investment is that they give such a high return for a short period of time. Unlike other business models that only give your trickles of profits, real estate can give you returns in bulk.
Consequently, these high returns means that you would also need a larger pocket of money to invest in. There is also a bigger risk when it comes to this type of industry. This is why you need to get educated about the type of real estate niche you choose, then get started right away. There is no wrong time to start in real estate.
2. Establish a good line of credit
If you are planning in becoming an agent or an investor, it is very important to have a good line of credit. There is just an element of trust that comes along an investor with a good credit.
This also gives you the ability to purchase property, recommend property, and get loans which you may be needing to expand your business. Although not a firm requirement, it can help you gain a leverage compared to other investors who cannot scale their business because of poor credit score.
To improve your line of credit, make sure to pay your bills on time, pay your other property mortgage, and be able to record other alternate lines of credit to help you strengthen your score.
3. Start with residential real estate investments
If you are not sure about the real estate niche you will be picking, you might want to start on residential real estate. This niche has proved to be an easy entry point, and would yield quicker profits over time.
New families who are starting their lives together are looking for a home, additionally, people who are moving cross-state may also be looking for a place to stay, either for rental or purchase. People constantly look for this because having a home is a necessity. That being said, it will be easier to find a residential client than a client who is looking for a commercial unit.
As a real estate beginner, you can try getting into residential investments initially.
4. Start your team with trusted individuals
No real estate investor is an island. In fact, a lot of successful investors have networks where they are part of. Through these networks, they are able to find potential customers, and they can get referrals and pass on referrals when needed.
Additionally, your team can help you promote properties, add their knowledge, skills and expertise in help closing out sales for potential customers.
5. Invest in progressive locations
When it comes to real estate, some investors would attest to this quote: “Location, location, location.” This means that you need to invest in sites where people like to live in, where there are great opportunities to start a life, build a career, or be a part of a community.
Progressive locations are your best bet to be successful in real estate. Investing in properties where there is low population, poor opportunities, and other unlikely livable conditions may not be the best idea no matter how affordable you brought the property for.
By keeping mind these fundamental principles, any real estate investor will be able to succeed in the business. It takes moments of learning, steps of action, and continuous progression to earn the best profits when getting into real estate.