Over the years, the real estate industry has gone from strength to strength. With this development, many individuals have tapped into the riches resident in this market and are now becoming millionaires.
That said, investing a great deal into proceedings inherent in this ever-growing market has its long-term financial advantages, including a positive stream of cash flow, an upsurge in property valuation, and leverage.
Consequently, with these extra benefits, most investors are towing the path of real estate to become wealthy and create that healthy “retirement fund” balance.
However, the process of creating an empire isn’t “easy peasy” all through as some investors are stuck on their first property acquisition.
You probably want to know how to build the real estate empire of your dream, right? If your answer is positive, you’re at the right place.
Although some stereotypes claiming that this meteoric rise is unattainable short-term, building a real estate empire doesn’t have to take a lifetime with the correct information.
Well, there’s more:
You don’t need to have a trust fund or a loan cut out for this purpose. With little to no capital, the possibility that you can build a real estate empire is high.
Are you looking to take your very first step into financial freedom? This article aims to give you some tips that can make your envisaged contour-filled journey a lot easier. It’s 2021! Let’s head right in without further ado.
Prerequisites to Building a Real Estate Empire
Well, you don’t just get out of bed one morning and decide it’s time to build a real estate empire, or do you? Just before you venture into this market, here are some things to know. They include:
- Do Research
Without this aspect, the other prerequisites are practically null and void. Before you make that first real estate purchase, make concerted efforts to increase your knowledge bank.
Many investors fail in their quest to set up a real estate empire because of a scarcity of information. To prevent this, take up whatever materials you can lay your hands on, including webinars, seminars, workshops, podcasts, and lots more.
Although you can’t know everything happening in this industry with a “Build a rental property PDF” or “Build a real estate book,” having a foundation on the basics is vital to avoid certain pitfalls that accompany real estate empire building.
That said, having someone who can show you the ropes (a mentor) when you have nagging questions is so important. These individuals who possess a vast “groundwork” experience in real estate can give you those live changing pointers you so badly need.
- Set Clear Goals
Before you set out on this journey, you must have a clear destination in sight. Asking yourself the question, “what do I intend to get from this investment,” is crucial in determining your next course of action, keep you on the right track, and closely monitor your growth.
The more specific your goals are, the more likely you are to attain them.
- Explore Your Financial Options
You’re never going to purchase a real estate property for free except, of course, a philanthropist is handing them out on a platter.
With the chances of this happening at an all-time low, exploring your financial option should never be a topic relegated to the “back burner.” Your financial opportunities to acquire a property could be through lenders, home equity loans, crowdfunding, and lots more.
While there are many options on show here, making the wrong pick can spell doom to your investment goals.
Since the “go-to” option amongst investors currently are home equity loans, let’s take a peek at some considerations you should seek out before drafting an application:
- Eligibility
- Loan type
- Terms binding to the loan
- Interest rates
- Loan amount
- Miscellaneous charges
However, if you’re looking for ways to save money for a down payment, embracing some frugal tips from ahappyhippymom.com is sure to work wonders.
- Acquire Your First Property
If you’re looking to build a real estate empire, you’ll have to start somewhere as the journey of a thousand miles begins with a step. After you’ve done careful planning concerning what financial option best suits your needs, it’s now time to buy your first property.
Nevertheless, most investors who are new to this market get scared because there are tales of other individuals getting stuck after their first property acquisition.
To nullify this scary statistic, make findings to ensure your property fosters positive cash flow. If it does, you should be able to buy a second and a third.
- Buy More Investment Properties
The saying “a tree doesn’t make a forest” rings true here. To build a real estate empire, it’s common knowledge that you’ll need to acquire more properties.
In cases where you have reservations, you can always network with a real estate professional to get crucial advice.
If you’re able to buy a first investment property, saving up for another usually takes years. To expedite this process, you can save some already existing positive cash flow (first property purchase) to purchase the next one.
Building Your Rental Property Portfolio: Is It Achievable?
Yes, building a rental property portfolio is achievable. Although we’ve looked at some aspects in the subtopics above, this section aims to give something much more definitive.
Before you achieve that empire, you have to know how to build a rental property portfolio. What does this process involve? First off, it’s nothing stringent as you’ll need to have a financial play and investment strategy in place.
Consequently, you can now buy your first investment property without any hassles whatsoever. However, make sure that you give into some considerations as your empire depends on the success level attached to your first property.
Let’s say you’re looking to employ a rental strategy; it’s crucial to pay attention to a property that makes the collation of rent profitable in the long run. That said, your first property should fulfill these caveats:
- A single-family apartment
- Located in areas gaining traction amongst tourists
- A property that features low maintenance
- Low-cost property (the total of purchase, insurance, and annual duties should be average)
Although this step is essential to create positive cash flow, your real estate portfolio diversification is also a thing. With more real estate property types, you can augment the losses a peculiar property is facing.
Summary
Building a real estate empire isn’t as easy as it sounds since you’re going to be dealing with many variables.
If you’re new to this market, you’ll realize that adequate research, seeking out the best financial plans, and consistency are all the ingredients you need to set up that real estate empire of your dreams.
