If you have ever thought about getting started in real estate investment, but weren’t really sure how, we provide a simple solution to get your foot in the door. In our latest post, we will discuss super easy ways to get started in real estate investment in St. Louis.
More millions are created by real estate than by any other means. Are you looking to build long term wealth, or would you rather make some quick cash? At the core, there are 4 key ways to make money in real estate with income property:
- Cash Flow
- Loan Amortization
- Tax Shelter
These are known as the 4 basic investment returns. For example a landlord with a buy-and-hold investment strategy may be looking for long term wealth. If his strategy is appreciation, he may purchase property with the expectation of it growing in value and selling at some future date for a large profit. But there are also investors who just want a large chunk of fast cash. A rehabber with a fix-and-flip exit strategy might only want to hold a property for 3 to 6 months. He/she will buy it cheaply, repair it and earn multi-thousands of dollars rather quickly as opposed to waiting long term. They will then rinse-and-repeat to build a large bankroll and continue to acquire properties.
Savvy investors, with diversified portfolios, often have real estate as the foundation of investments. Real estate is rock solid, it is tangible and it can be improved upon. What happens to a property you own is up to you. You have more of an influence on your returns when you are comparing to investments in the stock market. If you want to begin your journey into real estate investment, we want to help you with some simple ways to get started!
Join A Club
As a new investor of St. Louis real estate, you will want to network with as many people as possible. Joining investment clubs can be a great networking vehicle and can allow you to meet all kinds of people in your industry. You will be able to meet like-minded people (such as us) whom you can bounce ideas off of. Forming strong relationships is vital in real estate investment because this is a relationship business. Aside from clubs, talk to everyone you know about your interest in investing. If you are not sure which are the best investment clubs to join we can help you with that.
Working with a partner will help you open many doors you couldn’t have on your own. You may have already heard the phrase LEARN while you EARN. Not only will there be more capital to play with, but you will have more life experience, more support and someone to help with it all if things get tough. The best partnerships are created out of balance. Try to find a partner who is strong in the areas that you are weak. Do you have trouble cold calling? Find a partner who will talk to anyone and everyone. Do you hate running the numbers? Find a partner with an accounting background. It can be tough to find the right partner, but once you do, the results can be incredible. Even a knowledgeable wholesaler who can bring you great deals can be an excellent way to learn your target market, especially for out-of-state investors. In fact, that is exactly the service that we provide.
Find A Direct Seller
Buying properties that aren’t listed by a real estate agent can often save you some serious cash. If the seller isn’t dealing with agent commissions and other listing costs, they will be more willing to work with you on the price. You can also choose to work with a professional home seller such as Key Cash Properties LLC. We invest in St. Louis real estate and pass savings on to our buyers. We can help you start or add to your portfolio in St. Louis or the surrounding areas!
You don’t have to make a four bedroom house or a large apartment building your first real estate investment. There are single family houses selling dirt cheap in rental markets for landlords, and deeply discounted investment properties in areas with great schools and low crime for rehabbers. Learn all you can about the particular niche, and sell for profit. Reinvest your profits into something a bit bigger. Keep doing this until you build a solid portfolio you can be proud of. Everyone has to start somewhere. Don’t become overwhelmed by real estate investment before you even start. We are here to help you reach your investment goals.
Alternative Ways To Invest
REIT’s and crowdfunding offer investors alternative ways to invest in real estate. Using these methods, investors pool their funds to invest in something much larger. Something they wouldn’t have been able to purchase on their own. This is typically things like apartment buildings, retail centers or office buildings. Profits are proportionately distributed to investors at scheduled times. This can be a great way to invest in real estate while being “hands-off.” There is also some great software out there that can help you to find good deals.