- WHERE DO I START?
I’m glad you asked, as we want this site to be the answer to this question in helping you either get started or continue building your portfolio in real estate. This is the single most frequent question we get asked and realize that without answering can mean the difference between getting started or walking away feeling like it is all just too overwhelming. A good first place to start, like most things in life, is to determine your “WHY” and “WHAT”: Why are you interested in investing in real estate? What do you hope to achieve with it? The answers will be different for everyone, but determining your personal answers to these questions will go a long way in figuring out what real estate investing strategy will be best for you. Maybe you are looking to diversify your investment portfolio, looking for more tax advantageous ways to invest and grow your wealth, or looking for additional streams of income to supplement your current income. Most people considering real estate investing are doing so not so they can take midnight calls from a tenant about a leaky faucet but rather because of what impact they realize real estate investing can have on their financial future.
Another key consideration is to decide if you are wanting to be an active or passive investor in real estate. This will be a key feature in what investments you will likely want to consider. Many busy professionals do not have the time or inclination to take an active role in acquiring and managing properties so something more passive like syndications might make perfect sense for them. Others might want to be quite involved and are up for learning all the steps to take in individually owning property. The reality is, it isn’t rocket science or brain surgery, so anyone can indeed feel confident in knowing that with motivation and a moderate amount of effort they can become a knowledgeable and successful investor.
We have tried to organize this website to give you the ability to evaluate the pros and cons of some of the major real estate investing categories to see what might be best suited for your situation and to give you a breakdown of some of the practical steps you can take in the process of evaluating or getting involved in each. The strategy that is right for you will become clearer as you go through the material on the site and read some of the articles. From there we offer several partners in each category to help you explore what is available in each asset class. Remember, there is no one strategy that is right or wrong, just one that is best suited for YOU and your goals.
- WHAT ARE SOME BOOKS I SHOULD READ TO BECOME FAMILIAR WITH REAL ESTATE INVESTING?
See our recommended reading list of books under Educational Resources.
- WHAT IS AN “ACCREDITED INVESTOR”?
In the United States, the definition of an accredited investor comes from Regulation D of the U.S. Securities and Exchange Commission (SEC) and is defined as an individual having a net worth of at least $1,000,000 (excluding the value of their primary residence) or have an annual income of at least $200,000 for the last 2 years (or $300,000 combined income if married) and have the expectation of maintaining that incoming. The intention behind this designation is to protect potential investors from risk, the assumption being that individuals or entities that qualify will be financially sophisticated enough to understand the risks associated with certain types of investments. Therefore, some financial offerings are restricted to accredited investors only.
- HOW DO I CHOOSE A GOOD MARKET TO INVEST IN?
For the many factors to consider in evaluating a market or particular city, see our recent article on Real Estate Market Analysis.
- HOW DO WE CHOOSE THE COMPANIES WE PARTNER WITH?
There are thousands of companies out there to fill the needs of real estate investors. We have chosen our partners because they have been either companies we have utilized for our own investing need, invested with, or have been companies we have established a relationship with based on identifying them as having some service or offering that we feel would be of value to our readers. Feel free to share with us any other potential resources that you might know of that might be of interest to our readers.