If you’re thinking about breaking into real estate investing this year, Chicagoland could be a great place to start. With our housing market remaining relatively stable compared to other parts of the country and strong economic growth, experts report Chicagoland is an ideal place for real estate investment. But don’t take it from us. Here are five tips for investing in real estate for beginners.
#1. Pick the right location
You’ve heard the saying before – “location, location, location.” Okay, it’s not much of a saying, but it does still ring true in real estate. At the end of the day, location can be more important than the size, condition, or amenities of a home to interested buyers/renters. But make sure you go the extra mile to check out the market value, competition, and community desire to live there. We love an up-and-coming neighborhood, just make sure the price is right for what you can anticipate getting!
#2. Don’t be afraid to network
Many people have a fear that networking might be in line with giving away your secrets or hot takes, but the truth is, talking to other real estate investors can be a big help when you’re starting off. Building relationships with your local community can help you get access to deals that you may not have been privy to otherwise, can help you pool resources and information and might even be a good way to participate in larger investments with lower amounts of risk. If you’re not sure where to start here, check out some local investor groups, like your local REIA (Real Estate Investment Association) chapter.
#3. You don’t have to do it all
You’re working on becoming an expert in real estate investment and that takes time, money and focus all on its own. Once you buy properties, you don’t have to do it all. Outsource tasks to experts better suited to handle them properly, like property management companies, contractors, or attorneys that can close the deal. While it’s important to get all of these tasks done, it doesn’t mean they have to all be done by you. Rely on experts where they’re needed.
#4. Invest in learning more
Holy cow, your property is actually doing exactly what you wanted it to be – now what? Don’t forget the importance of continuing your real estate education. The market is always changing and the upcoming buyer pool is shapeshifting into millennials and Gen Zers looking to buy their first home. Just because what you’re doing now works, doesn’t mean what you’re doing in two years will. Stay invested in local groups, real estate masterclasses and more to stay on the cutting-edge side of real estate investment!
#5. Remember it’s a marathon, not a sprint
Investing in properties is a great way to build passive income, but it doesn’t happen overnight. When you’re setting out, start off with a well-developed investment strategy to avoid overspending upfront. It’s said 95% of real estate investors fail, largely in part because they didn’t have a thought-out plan or overspent on budget. Expert Greg Herlean reminds buyers of the ultimate goal – sell for a profit.
At the end of the day, if you’re ready to invest in real estate, Baird & Warner can help. With agents representing property all over Chicagoland – from luxury to commercial and beyond – we’ve got you covered as you make the jump into your future. Ready to learn more? Contact us today.