There can be a lot of ways to make money with real estate investing, but if your ultimate goal is to build long-term wealth and cash flow to retire, then it’s very important to slowly build a portfolio of cash flowing income properties. It may seem difficult to build a portfolio at first, however with a little discipline, it can be done!
Start Off Small – Remember you can't do this overnight. This is a long-term plan that will take time to build. With that being said, you should start off on a small scale and work your way up to bigger properties. Possibly start with a single rental, condo or single family home. Then, once you have a handle on it, you could work your way up to a duplex or triplex. The most important thing to accomplish will be proving to yourself and the bank that you can maintain a profitable portfolio.
Look for Deals – Most good real estate investors make their money upfront in transactions. You make the most money when you find a great deal. You can't overpay for a property so you can get into the market! If you do, it will be difficult to get your money back from the investment. The best way to build a portfolio with limited cash or income will be finding the deal. You’re not looking for the rehabbed, ready-to-move-in investment properties. Ideally, you are looking for the properties that need minor rehab.
Start Early – You don’t have to wait until a certain age to get started. There is nothing that says you should not invest in real estate. The earlier you can get started, the better off you will be in the long term. If you are not sure whether the time is right for you, contact a loan office to get started on what it will take on your end to begin the process.
Leverage – Most real estate investors leverage their money to buy real estate. You may have to start out using banks and private lenders to help fund your portfolio. The more properties you can buy, the more potential profit you stand to make. It is highly recommended to maintain your savings for emergency maintenance and vacancies. All properties will require maintenance from plumbing work to paint and are a requirement of being a landlord.
As I have said before, please call a local REALTOR for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It's best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.