As one of the most lucrative housing markets in the United States, Boston tends to attract a considerable number of real estate investors, many of them locals who learned about property investing on their own. Practically anyone who aspires to become a real estate investor can do so thanks to the high levels of activity in the local market, the considerable amount of available resources, and the numerous opportunities.
Becoming a real estate investor requires learning, planning, doing a great deal of research, strategic execution, compliance, and money management. Here are some of the steps you should take as you enter the world of investing in real estate in 2018.
Pursue Learning and Education
There is lot to learn about real estate. Investors and professionals who work in this field will tell you they never stop learning something new. You can get started by taking courses that will lead to real estate licensing, but you will be better off taking courses offered by the UC San Diego Extension Program. To this effect, you may wish to inquire about the Real Estate Economics and Market Analysis course (RELE-40020). UCSD also offers courses on property management, in case you plan on acquiring condos for rental income purposes.
Find Your Investment Niche
Once you have learned about the housing market, your next step should be to determine how you will approach it. There are two main categories of real estate investing: direct and indirect. Most investors jump into the direct approach because they feel inspired by reality series on HGTV, which follow buyers looking for bargains they can renovate and either flip or rent for profit. This approach can be quite lucrative if you intend to specialize in downtown Boston condos for sale, but you will need to partner with the right brokerage. The indirect approach is far less involved. You can invest in real estate investment trusts (REITs) that trade just like mutual funds or shares of Microsoft.
Formulate a Business Plan
This step is ruefully neglected not just by real estate investors but also by stock traders and even entrepreneurs. If you are being mentored by someone who does not believe in business planning, you may want to look for second opinions, particularly if you are taking the direct approach. Your plan should include investment horizons, cash flow scenarios, funding sources, and exit strategies. Business plans are meant to be executed, which means they should be written realistically.
You will not be able to close real estate transactions on your own. Instead, you will need the assistance of professionals such as brokers, lawyers, title agents, appraisers, loan officers, and contractors. As you become a seasoned investor, you will meet professionals who can help you execute your business plan and meet your goals. These are the individuals you should keep in touch with since they may let you know about prospective investment opportunities