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Real estate investing strategies help build your investment portfolio and focus on important goals. However, one of the biggest challenges faced by new real estate investors in OKC is deciding on the right strategy to launch their investing career.
There are so many ways to earn profit in the real estate industry, but you need to consider carefully where you want to end up. Many real estate gurus claim to make overnight fortunes using the special techniques they will reveal if you invest in their training program. As a result, beginner investors are inundated with offers from these get-rich-quick real estate trainers.
Note: Top 5 Reasons Why Real Estate Investing in Oklahoma City is Making Investors Rich
The problem is that most of these training programs do not take into account your situation, the real estate market in which you are located, your objectives, and your starting resources. When I first began, I invested over $10,000 in various real estate courses to learn about real estate investment strategies. I thought that if I just had that little-known secret, everything was going to change.
But what you don’t find in those courses is the truth of the matter. So in this article, I want to share with you the wisdom I unearthed after looking for those little-known secrets.
“Gaining Clarity On Your Real Estate Investment Strategies Is Important Because It Will Guide Every Action You Take.”
I became a real estate investor in my 30s after getting real about the prospects for retirement. My wife and I both worked full-time jobs. “Full-time” at my work meant working 60 hours a week. We would not be able to retire for a long, long time if things had stayed the same.
What made the most sense to me just intuitively was buying inexpensive homes to lease out. The rent would be used to cover the mortgage payments as well as provide some positive cash flow. Eventually, the tenants would pay off the mortgages, and we would have free and clear houses.
But then came what in hindsight, I’d call distraction.
I got involved with property flipping for some time. The promise of quick cash profits was so tempting. And flipping houses can make for some nice paydays. The problem is you don’t end up creating equity and cash flow every single month for the long term.
Recommended: The Beginners Guide to Oklahoma Real Estate Investing
How To Invest in Real Estate in Oklahoma City
Real estate investment can be a great way to build wealth and generate passive income. It isn’t easy initially for a beginner looking to invest in real estate in Oklahoma City, but it seems easy after understanding the root strategies.
Before you start investing, you must learn as much as possible about your area’s real estate market. It includes understanding the different neighborhoods, property types, and rental needs. Your investment goals also drive you to implement an investment strategy for achieving them. There’s no need to jump in and buy a dozen properties right away. Just start small and gradually build your portfolio as you gain experience.
One of the best ways to learn about real estate investing is to find a mentor who can share their knowledge and experience with you. Many experienced real estate investors would be willing to mentor a beginner. It helps to minimize your risk and provides opportunities to learn from your mistakes. If you’re still unsure where to start or need help with financing or property management, getting professional help from a property manager in OKC is a good idea.
Learn what is digital real estate and how to invest as a beginner.
How Does Real Estate Investing Make Money?
Real estate investing is profitable to invest in and gain the maximum returns in OKC. The three main potential ways to generate income for real estate investors are:
Appreciation:
Most real estate appreciates over time, meaning that the property increases in value over time. Sometimes without you doing anything. When a property appreciates, it automatically increases your equity, which is the difference between its value and your outstanding mortgage principal.
Rental income:
Real Estate investors can make money by being a landlord of a rental property. This involves renting out their properties to tenants and generating recurring rental income. The rent payments can help cover the mortgage, property taxes, maintenance, and other expenses, and the investor can pocket the remaining profit.
[Also Read: Tax Benefits of Owning Rental Property]
Renovation and flipping:
Real estate investors can also make money by buying undervalued properties, renovating them, and then selling them for a profit. The profit comes from differentiating the purchase price of the property and the sale price after factoring in the cost of repairs and renovations. This strategy is risky, but it can also be more profitable.
I highly recommend reading about digital real estate, which is emerging rapidly as a virtual property.
Tips For Beginner Real Estate Investing in OKC
PUT TOGETHER A PLAN THAT PUTS YOU ON DESTINATION TO WHERE YOU WANT TO GO.
Before starting, all I wanted was freedom from the shackles of my corporate job. After accomplishing this, I have the following beginner real estate investing strategies based on my experience.
Develop A Broad, General Strategy That Will Get You Where You Want To Go
Property investments for beginners is a carefully devised plan of action to manifest or create the desired result. A strategy is long-term in nature. For example, your short-term investing strategy could be to generate $40,000 to put into savings. There are multiple ways or tactics of accomplishing chat.
• Is it to buy one rental property a year for your retirement?
• Is it to become financially free very soon to retire on some Costa Rican beach?
• Is it to build a real estate business that pays your salary and gives you the type of lifestyle you desire?
The two main property investment strategies are Creating Cash Now and Building Passive Income and Equity. Creating cash now is like another job. Before you decide to quit your job to flip real estate, give this one some careful consideration. That weekend real estate seminar might serve to pump you up about flipping properties, but it’s not as easy as it sounds.
Get to know the factors affecting the real estate market
Figure Out Your Money
A really important factor to invest in real estate, is the cost of paying your bills, which is one of the crucial and distinctive strategies for beginner real estate investors. Most individuals have a good understanding of this aspect.
Here are some other ones:
- How much will you need to save to invest in the number of properties that you will end up investing in?
- How will you finance your purchases?
- What would it look like if you made a career transition in regards to getting a lender to finance your purchases?
- Is there a way to create a reserve fund? For example, could you create a home equity loan?
Get to know Why do you need a real estate market report
Don’t Be In Too Much Of A Hurry
I’m all about safety and security. Ask my family. I’m the guy who drives the speed limit to the annoyance of others.
Even though I did end up quitting my job, I had a very good feeling about what I’d be doing. How I’d pay my bills. I worked out an arrangement with my employer to work on a contract basis. By doing so, I was able to eliminate the 60-hour work weeks.
I had more time to devote to Real Estate Investment. And I was able to work for that company for several more years, which paid my bills during that time of transition. And I didn’t have an XXL lifestyle. I drove old vehicles. Wasn’t attached to designer labels. Didn’t go on fancy vacations.
So think more about working at your current job for longer. Buying properties in a slow and measured way while you learn the ropes. Retiring to the beach is a nice dream to have, but it’s going to take some time to get there.
Don’t Get Bogged Down In Tactics Until You Have Your Strategy Nailed Down
Tactics are actions taken to achieve some strategic objective. For example, two of your health classics supporting your strategy of being energetic and maintaining a particular weight could adhere to a low-fat diet and go biking 4 times a week for exercise.
For example, if your real estate investment strategy is to build equity and monthly cash flow, your tactic may be to buy 2 single-family homes per year for 10 years for rentals. The strategy should always be direct tactics.
Your investment strategy should be on a timeframe of years, and your tactics should be on a timeframe of weeks and months.
Although you can consider strategic thinking a smarter way to guide your actions, it doesn’t tell you exactly what to do. Being tactical is all about action.
One clue that your strategy is not specific enough is if your tactical plan is fuzzy. It should not be. It should be very clear. If it’s not, your actions are going to be all over the place. For example, the strategy of “Creating Monthly Cash Flow” is not at all specific enough.
You can make it more clear by, for example, describing the types of real estate properties in which you will invest. You can also specify the area in which you will be investing. The price range. The number of bedrooms and bathrooms. Once you have very specific property investment strategies, you can focus on the tactics for finding, renovating, financing, and managing these properties.
The More Focused You Are, The More Successful You Will Be
Keep sharpening that focus until it’s like a laser beam. For example, one of my associates focuses on Buying Low-Priced Homes with 3 Bedrooms and Bricks to renovate. He leases these homes to people through a government rental assistance program.
The 80-20 rule says that 80% of the results will be achieved with just 20% of the actions. Focus on the 20% of the actions that lead to 80% of the results you are after.
The Best Investing Strategies are the most Simple
Real estate investing techniques can be tough in the beginning. You should be able to articulate your overall strategy in one or two sentences. Investing in a real estate rental property to rent out on a long-term basis has been the best way to make money through rental income. Here are the top reasons to invest in real estate.
Let me keep it simple. Following are the real estate investment strategies for beginner investors:
Buying rental properties is one good tactic. As long as you find potential tenants, you’ll have massive profits. For that, get help from the best property management company in Oklahoma for tenant screening and home inspection services.
Buy and hold your real estate assets until you get fair cash on return. Measure the amount of real estate investment you have made and wait till you make a profit on that. This real estate knowledge can be applied to all kinds, from single-family homes to apartment complexes. Fix and flip real estate properties. You can renovate the investment property before selling it so you can make more profit.
Recommended: Steps to Become a Real Estate Investor in Oklahoma
Popular FAQs on Real Estate Investment Strategies
How do Beginners Start Real Estate Investment?
1. Figure Out Your Financial Stage.
2. Specific Investment Strategies.
3. Choose a Target Market and Your Investment Property Criteria.
4. Build Your Team and Line Up Financing.
5. Raise Cash For Down Payments & Reserves.
6. Create a Plan to Find Deals.
7. The more focused you are, the more successful you will be.
What is the Best Real Estate Investing Strategy for Beginner OKC investors?
The best real estate investment strategy for beginner OKC investors is to invest in newer single-family homes as rental properties. You will need to determine your monthly cash flow. Be sure the monthly cash flow is positive. By investing in newer homes, you will be paying less for maintenance. And, you will, in general, attract a better tenant to newer properties.
What is the best way for investors who are new to the OKC market to create their real estate investing strategy?
1. Develop a broad, general strategy that will get you where you want to go.
2. Figure out your money.
3. Don’t be in too much of a hurry.
4. Don’t get bogged down in tactics until you have your strategy nailed down.
5. The more focused you are, the more successful you will be.
6. Keep real estate strategies simple.
What are some strategies for investing in real estate for beginners?
Following are the strategies real estate investor follows as a beginner:
1. Buy properties and manage them.
2. Hold properties until you generate profit.
3. Fix and Flip the properties. Renovation is the key.
Is real estate a good investment strategy?
Real estate investment is a great strategy. Buy and hold generates ongoing passive income. For a long-term investment, it can be good since the property value increases over time. Real estate investments in Oklahoma are making investors rich.
What are some of the common mistakes that beginner real estate investors make?
Some of the most common mistakes that beginner real estate investors make include:
Not doing their research before investment.
Not having a proper plan
Not being patient for a long-term game.
Not getting professional help with property manager.
Author
Scott Nachatilo is an investor, property manager and owner of OKC Home Realty Services – one of the best property management companies in Oklahoma City. His mission is to help landlords and real estate investors to manage their property in Oklahoma.
