The learning process in Real Estate Investing is an ongoing one. It’s important to stay abreast of different trends in the market and understand the use of technology to make things more efficient. Real Estate courses can be taken online from sites like REI and Roofstock Academy. For a hands on coaching approach to Real Estate Investing, companies like FortuneBuilders and Propelio are great resources as well.

Finding a mentor or some form of “one on one” coaching from an experienced Real Estate Investor can be very beneficial when getting started. You can also use online courses or Facebook groups to ask questions and receive advice from peer investors. You can also find unlimited resources at your local chapter of the National Real Estate Investors Association.

Picking a real estate investing strategy is also important. It’s the investment strategy that allows you the method to generate real estate income. Take a look at the six real estate investment strategies you can choose from:

Buy-and-hold

A buy-and-hold strategy involves buying a rental property, finding a tenant, and renting it out in exchange for regular cash flow. Typically, this strategy is thought of in a residential real estate context. However, it can also be used with commercial real estate. Short-term rentals: This strategy involves using a platform like Airbnb or VRBO to rent out your property to short-term guests.

Fix-and-flip

Also known as "flipping houses," this strategy involves buying a property that is undervalued for the market, renovating it, and selling it quickly for a profit. Wholesaling: Like a fix-and-flip strategy, wholesaling involved buying distressed properties from motivated sellers. However, instead of renovating them, you simply turn around and sell them quickly to an end buyer for a marginal profit.

Wholesaling

Like a fix-and-flip strategy, wholesaling involved buying distressed properties from motivated sellers. However, instead of renovating them, you simply turn around and sell them quickly to an end buyer for a marginal profit.

Short-term rentals

This strategy involves using a platform like Airbnb or VRBO to rent out your property to short-term guests.

Real estate investment trusts (REITs)

If you're working to generate passive income, investing in REITs might be the right strategy for you. It involves buying shares of companies like you would buy stocks and receiving dividends when they make a profit.

Crowdfunding

In this case, an experienced real estate developer will likely have zeroed in on a good investment opportunity but won't have the capital to make it happen on their own. They will use a crowdfunding platform to pool money from interested investors and, in exchange, will give them a share of any profits.

Consider these three different Investment Strategies:

Active

Hands-on real estate investing includes fixing-and-flipping, wholesaling to other investors, finding and managing rental properties yourself, and working as a licensed real estate agent to earn commissions while you build up your investment portfolio.

Mostly passive

Investing for recurring cash-flow streams and long-term property appreciation includes partnering with other investors or purchasing professionally managed rental properties. There is some work involved but the day-to-day management is usually handled by a property manager.

Passive

This includes buying shares through crowdfunding and REITs, of a property or property portfolio, that are fully managed.

Determining the available sources of financing can also be a challenge to a new Real Estate Investor. Consider our 3 ways of securing finances for Real Estate Investing.

Home Equity Line of Credit (HELOC)

You may be able to use your primary residence to get a home equity line of credit (HELOC). Check with your mortgage lender for availability. If you currently have an investment property, it may be another source of LOC that you can use but may come with less advantages than your personal residence.

Hard Money Lending

A hard money loan is an asset base short-term loan that does not come from traditional lenders, but from individuals or private companies that accept property or an asset as collateral. Borrowers may turn Hard Money Loans to avoid the lengthy process of getting approved for a loan through traditional means. What differentiates the difference between Hard Money Loans is the Term Sheet, so be sure to ask for one.

Private Money Lending

Is a non-traditional lender that has excess cash from their main area of business who is looking to earn a higher return on their disposable or expendable income. It is important to note that private lending is primarily for business purposes as they are classified as unregulated loans that do not fall under the National Consumer Credit Protection Act.

While there are many sources to find investment properties, the internet is obviously the most popular. There are many searches that will drive you to available properties for purchase but are they the right fit for your interest. Real Estate Investment Properties will work with you to determine your target properties and deliver detailed prospects that will lead to investment property profits.

Renting real estate to the general public can create issues that require legal attention. Investors can avoid potential problems and litigation by understanding the local and state laws that govern real estate:

Eviction processes vary from place to place and may limit your rights as a landlord. Conducting background checks on potential tenants helps avoid renting to problem tenants in the first place. However, always be sure to treat every applicant fairly and equally.

Rental security deposits and prepayments often have their amounts capped by local landlord tenant laws.

Insurance coverage for rental property differs from owner-occupied homes and should include general liability coverage that protects you against claims from the tenant or the tenant’s guests.

When conducting business with a buyer or seller, commit yourself to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve you of your obligation to treat all parties honestly. When serving a buyer or seller in a non-agency capacity, all investors are obligated to treat all parties honestly.