real estate

Real Estate Investing for Beginners: Tips That Can Help Beginners

Real estate investing for beginners can seem a bit intimidating, and it may be easy to get lost in the sounds and lights of the various books, blogs and television gurus offering advice to beginners. To help you start your journey to find financial freedom through real estate, I have come up with some real estate investing for beginners tips that will be very beneficial to you.

Tips on for beginner real estate investors

Be resolved

You should always remember that investing in real estate is not a get rich quick scheme. You will have to struggle to become a successful investor. Know that you will make mistakes and fail at times but take those experiences and turn them into lessons that will help you improve your skills.

Do your homework

Some of the real estate investors out there jump in with both feet not sure of where they are going to land. At times, these investors succeed while most of them lose a lot of money. Avoid this by studying the niche you want to invest in and learn everything you can about that niche.

However, remember that you don’t have to know everything about real estate investing. Just focus on what matters so that you don’t get overwhelmed with knowledge.

Connect with local real estate investors

Look for real estate investors near you and ask them to show you some of their properties. And since most of the investors out there like showing off their accomplishments, let them tell you about their experience as this will help you know more about real estate. Local investors usually know what works in your community and what does not work. This means that what they tell you will benefit you a lot.

Write out your business plan

You don’t have to write a super formal business plan. What are your goals? How are you going to achieve these goals? Remember that it may be difficult to succeed without having a roadmap.

Learn to sacrifice

If you want to succeed in the real estate industry, you will have to learn to sacrifice. Investing in real estate is rewarding, but you have to know that it will not always be easy. You may have to sacrifice your money, time and opportunities to achieve financial freedom. As we said earlier, this is not a get rich quick scheme.

Learn to trust basic math

Real estate investing involves basic math that is not difficult to learn. Use a basic spreadsheet to help you analyze a deal or download an investment property calculator to help you explain each every deal you do. After understanding the math, don’t deviate from it. Trust it and don’t let your emotions get involved.

Treat your real estate investment as a serious business

Always remember that real estate is a business. You can achieve this by keeping it organized, building systems that will manage your life and try as much as you can to improve your efficiency. Most of the real estate investors who get burned out treat real estate investing as a job or hobby. Keep in mind that you are a business owner and you should ensure that you manage your business to the standard which suits you best.

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Investing In Your Home With Insurance

Every policy geared at insuring your home is going to be a little different depending on the insurance provider you go with, the level of coverage you choose, and the diligence with which you track changes in what is offered by the company that insures you. You’re simply going to have to go over your policy with a fine-tooth comb in order to see exactly what is covered, assuming that anything not expressly stated is not going to be covered.

However, that could leave a pretty large list of things that would not fall under your policy, and that can be a bit disconcerting considering how much you’re paying to insure your biggest asset: your house. So here are just a few things that may not be covered and what you can do to protect your home.

Natural disasters

In many cases, natural disasters like floods, earthquakes, tornadoes, and so on are not covered by a standard homeowner’s insurance policy. Although some areas that are prone to these disasters will require you to carry this insurance as an addition to your homeowner’s policy, low-risk areas generally won’t call for such coverage, meaning your policy provider may not even make the recommendation. However, you may still experience these natural disasters, so you should talk to your provider about the likelihood of such events and whether or not you should take out a policy that covers them.

Liability

Did you know that if guests or workers in your home suffer accident or injury on the premises you could be responsible for their medical bills and any legal action they take against you? Wouldn’t you prefer to be covered by insurance in case of such events? Suppose your dog bites the mailman, a workman falls off the roof, or your child’s friend leaps off the top step like a superhero only to break his leg on the way down. Each of these occurrences could result in a hefty payout on your part, so find out if accident liability is covered by your policy instead of assuming that it is (possibly wrongly).

Home-based business

If you run a business out of your home, there’s a good chance that it isn’t covered by your homeowner’s insurance. While working online as a personal assistant won’t require you to take on any additions to your policy, businesses that require you to manufacture goods in your home or have employees working with you on your property could pose a risk since they almost certainly won’t be covered. And what if you are sued by a client or consumer? How will you pay for a settlement against you? These are all things you need to talk to your insurance provider about in order to make sure your business is covered.

Assets in the home

Although most policies have some provisions to cover valuables in the home in case of theft or some sort of natural disaster, not all of them offer this addendum, while some require you to report on assets beforehand. Even then, they may require proof such as photographs or serial numbers. You need to know what is covered and what is required for home insurance before disaster strikes.

Future assets

Most people buy a home with the intention of waiting for the value to appreciate so that it can be sold for a profit. But your insurance may not account for this adequately. For this reason, you may want to opt for some kind of blanket policy that covers future appreciation and accumulation of assets so that you don’t wind up with less than you bargained for.

 

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