Real Estate Investment For Beginners (2021)

I wonder what makes you an investor if you don't have a real property, you can invest on share funds, stock and cryptocurrency but you will only become a professional investor when you have a real property said for by a famous investor.

Real estate investment for beginners is really broad sector and long journey of business life. but in this post everything will be made simple as much as possible for you to pick up the basics and how to start real estate investments.

Starting anything on earth is always horrible experience and difficult one at that, many challenging factors for new investors on real property. this blog post will make you feel at home and give you a soft landing to the real estate industry with less stress.

Investment purpose is different to some persons due to interest of investing, many people invest in real estate because it's the only assets you can leave behind for your children and can still be passed on to another generation. some invest to be wealthy forever and never to worry about money because they have a continuous cash flow making them financially free.

I don't know your reasons for wanting to invest on real estate, to read this post means you're interested on real estate, whichever you must have the right mindset about the real estate business. as a beginner is time for you to get it right to know the fundamentals of real estate investments.

Table of content

✔ How to start investing in real estate for beginners.

✔ Best real estate investment for beginners.

✔ Is real estate investment safe for me?

✔ Tools to get started in real estate investing.

✔ Summery.

How to start investing in real estate for beginners

Like we discussed in the introduction part, i informed you from the beginning that starting as a beginner in real estate investments, it's not going to be easy. here's the most motivated quot that kept many REB investors moving forward through that rough road of real estate business. 

"the first day you start doing something new, the result you got is the worst result you will ever have on that field.

To manage or own real property is not a child's play. it requires years of becoming better and experiences in the investing outcome of real estate strategies. to get the expected return on investment. (ROI), you will need a proper real estate business market analysis. 

I have a post on this blog titled 7 best ways to start real estate investment maybe reading it also can prepare you on the best track to start.

4 Best Ways to Start Investing REB

• Invest in residential building.

• Invest in Condo units.

• Commercial real estate investment.

• Land banking investment.

To start REI, you must choose an area of practice/specialization. to become a professional real property investor and make a huge ROE or  ROI (return on equity or return on investment)

If you have chosen an area of specialty then you're one step ahead become a professional investor in REI. the next thing is to discuss best real estate investment of beginners.

Best Real Estate Investment for Beginners

There're many ways to invest in real estate for beginners and it's always based on your choice of investment and local market available for you in REB.

Real estate investments during the COVID-19 pandemic in 2020 was horrible and crashing. While the pandemic isn’t over yet, real estate investment is expected to follow a broader economic recovery trend in 2021. Many commercial and residential real estate investors are optimistic as two COVID-19 vaccines have now been introduced.

While the start of 2021 will not promise any recovery, experts suggest commercial real estate will begin to stabilize by the end of the year. According to Kathy Feucht, global real estate leader at Deloitte, commercial real estate investors plan to reduce costs by around 25% in 2021. However, a new demand for health-related amenities, such as new ventilation systems, may actually up to cost up to $20.00 per square foot.

Depending on the type of commercial real estate investment, there are several different predicted trends for 2021. Let’s take a look at these different real estate investment for beginners.

Invest in residential building

This is the easiest and most common way to start your real estate investment REI. in this contemporary society, shelter is the key note of life. everyone is hoping to own a home. the percentage of homeless family in my country Nigeria for example. we have over 70 million people that have no adequate shelter in the ratio of 6 persons per family unit.

Residential building is a building that is constructed with sole aim of human living. as a young investor or new investor that wants to go into building houses for people to live in and feel at home. to make rental income or sell off property cash. home selling and building is not an easy task and may bring frustration along the way. to overcome those obstacles, you will need an investment plan strategies that will contain the following scopes of business success.

1. Financial plan.
2. Real estate coach.
3. Real estate company overview.
4. Financial adviser.
5. Good Building location.
6. Customer relationship.
7. Client satisfaction strategy.
8. Qualified workers.
9. Mortgage plan.
10. Tax property free.

To start investing in real estate business on the aspect of residential building, those key points above need to be in consideration to excel as an entrepreneur or investor. without those key points in the first year of investing in residential building you may end up wasting your capital with low income or no sell at the end year. 

Residential real estate can be so frustrating if you are not innovative and creative, but the aforementioned key points will improve your professional skills to own and manage residential property.

 

Invest in Condo units

Condominium according to English dictionary is a building or complex of buildings containing a number of individually owned apartments or houses.

Condos can be attractive investment opportunities. They often have lower prices than comparable single-family or multifamily homes in a given market and they have fewer maintenance issues for owners to worry about.

On the other hand, there are some drawbacks that you need to consider. For one thing, condos often have monthly fees that can increase significantly and unpredictably. And condos can be more difficult to get financing for.

Condos make good investments in the right situation, but it’s important to know what you’re getting into before you sign a purchase contract.

Choosing a condo as an investment property has both positives and negatives. Here are some of the reasons you might want to consider a condo as your next investment property.

Low cost: In many real estate markets, condos are significantly cheaper on average than single-family homes. In my own market, a rent-able condo can be found for $60,000 or so, while you’d need a minimum of $120,000 to get a rent-able single-family home.

Cost is the biggest barrier to entry in real estate investing, and a condo can be the most affordable way to get started in condominium investment.

Commercial real estate investment

Before we get into the mechanics of how to invest in commercial real estate, it’s important to understand the various types of commercial properties. This way, you can start thinking about the commercial asset type in which you want to specialize. Commercial properties serve a broad range of purposes but are generally grouped into the following types:

• Office

• Hotels

• Retail

• Industrial

• Multifamily

• Special Purpose

The question of ‘how to invest in commercial real estate as a beginner’ has only one answer: due diligence. Regardless of what sector or niche you’re in, doing your homework and minding your due diligence is critical in ensuring your success in real estate business. 

Besides learning the ins and outs of commercial investing, make sure you understand the commercial real estate market and how it can differ from the residential real estate market. understand the commercial real estate market.

Land banking investment

Land banking is the buying of lands for sale in the future for a bigger profit  margin. we have written a post titled 5 best ways to buy land in Nigeria. you can check to know more about storing land for future use. 

Investors considering a raw-land purchase need to realize that they are engaging in a purely speculative investment. This is because undeveloped land does not generate any income, and therefore any return on investment will have to come from the potential capital gain that may be received once the land is sold.

Land banking is something that major developers and retailers have been doing for decades because it happens in every major city in America.

Look at your nearest major metropolitan area and compare how it looks today to what it looked like ten years ago. If a city is growing, there will be a constant new development of residential neighborhoods and commercial subdivisions. New retail establishments are always being created or revitalized, no matter what the real estate market looks like.

This is the most underused and less pursued aspect of real estate investment, because many investors lack the patience of buy and hold technique. this is already an opportunity for you as a beginner to start your investor profession as land banker in REI.

Is real estate investment safe for me?

All over the world, real estate is considered one of the safest sectors to invest in. In Nigeria, it is the second largest employer after agriculture – and is slated to grow at 30% over the next decade. So regardless of temporary setbacks, it’s still the safest investment option – and will continue to grow in the long term.

In America real estate investment is considered as the most reliable long term investment ahead of mutual funds, stocks, share funds, gold and crypto-currency. 

Compared to real estate, stocks present a cocktail of uncertainty. Trading in stocks and derivatives is a risky game. Being a highly specialized field, it requires excellent skills to make money out of equities and leverage trades.

Anyone Can Invest in Real Estate

Investing in real estate does not require any special skills – even a first-timer can do it. Not only is it safer, it will also most likely fetch you better returns in the long run – aside from providing you with a solid roof over your head for generations to come.

Real Estate Yields Fabulous Return on investments.

More people have become millionaires and billionaires from real estate than possibly any other industry. Moreover, populations are growing – but the supply of land is limited. So the demand will continue to grow – and returns from real estate will continue to yield great returns in the long term.

 Tools to get started in real estate investing

You will need the following tools to get started in real estate investments, to enable you to prepare the most sought after profitable real property.

Let's focus on the 5 top real estate tools to search and analyze profitable properties for sale, this tools is an instrument for real estate investors to own and manage rental properties and it's listed as follows;

• Educational real estate investment tools.

• Real estate heat-map.

• Online property Finders.

• Investment property calculator.

• Property market place.

Get the above tools to get started in real estate investment as a beginner because we all know the popular proverb from Benjamin Franklin that says and i quot " failing to prepare is preparing to fail"

The above tools will guild you properly not to fail in your investor profession, you can make more research to understand all the tools better by clicking this external link to read more real estate investment tools 2020 update.

Summery

Real estate investment for beginners require special entrepreneurial skill to keep you in the business and make you better in the management and development of real estate investments.

To start is advisable you get a coach, if this post is not enough. you can engage yourself with intensive study about real estate by buying real estate investment books, reading other real estate related articles online, attending seminars on investment strategies and webinars on how to start investment on real property for novice.

Best way to start real estate investment in Nigeria for example or any part of the world, we advise you to start with less competitive aspect of REI such as Land banking which is simply buy and hold technique. buy lands now and sell later when it appreciates, have your return on investment.

Real estate investment is safe and reliable, is one investment you won't regret if you play it straight. learning many things as much as possible is the best tool to equip yourself in starting real estate investment.