While real estate investing offers several benefits to investors, it does not come without its difficulties. New investors need to know what real estate obstacles they will face to prepare themselves best. Here are a few real estate obstacles you will need to consider before jumping in.
If you are like most investors starting out, you will need financing assistance. There are several options available to investors, and you will need to understand the pros and cons of all of them to make the right decision. You will need to consider the source of financing (hard money lender versus conventional) and the type of loan (30 or 15 year conventional, jumbo, home equity, etc.) Qualifying for investment loans is not always easy, so you will need to know how to prepare yourself and your finances to increase your chances.
All across the country, prospective homeowners and investors alike are having difficulty getting their hands on property. There are simply not enough houses to go around. In a report published by the National Association of Realtors, “The gap between the demand and supply of homes is between 5.5 million and 6.8 million units.” This has led to an inflation in housing prices and a tougher playing field for buyers. Low inventory and market fluctuations are real estate obstacles investors need to navigate to be successful.
Working with the right people
As the saying goes, “It’s not what you know, it’s who you know,” and nowhere does this ring truer than in real estate. A successful real estate investor will need to establish a team of dependable contacts from agents, contractors, lenders, appraisers, escrow agents, and more. Having the right team behind you can be the difference between securing that deal or not. Odds are, it will be necessary to filter through a few partnerships before you find the one that fits best for you.
Lack of Knowledge
Knowing how and where to start can be the most significant real estate obstacle people face when looking to get into investing. For some, looking at the big picture of investing without knowing exactly how to make it happen can be debilitating. That is why it is so important to prepare yourself ahead of time to understand how to handle the unexpected and make pragmatic decisions. While real estate investing is possible for anyone at any age, it does require a certain level of prior knowledge and preparation for the best results.
Intro to Real Estate
As with any industry, the real estate obstacles faced by investors can be challenging but not impossible. Our company is passionate about equipping investors of all levels with the tools they need to be successful. We know firsthand the freedom and possibilities real estate investing offers, and we want to share what we know. Our affordable real estate education courses are designed for all levels and learning styles and will prepare you with real-life investing scenarios. If you are ready to invest in your future, start by investing in your education. Click here to learn how to take the next step towards your future success with real estate investments.
Wishing you great success in all you do!