How to Get Started with Real Estate Investing: A Beginner’s Guide

Real estate investing is the oldest and most popular form of investment in America. It’s a tried-and-true way to make money. However it can be challenging for someone who isn’t familiar with the market to get started. Here are ten tips to help you get started with real estate investing!

Photo of a small house in Lyndon Louisville Kentucky - How to Get Started with Real Estate Investing: A Beginner's Guide
The smaller the home the easier it is to purchase and lease out. | Credit: Tre Pryor

How to Get Started with Real Estate Investing

Tip #1: Do Your Research

Before you get started with real estate investing, you want to do your homework. You should know the basics of how it works and what you’re getting yourself into. Real estate can be a great way to earn a living – and a fun hobby as well. However, if you’re not careful, it might just cost you your life’s savings. So, it’s always best to be prepared.

Tip #2: Buy When Everyone Else Is Selling

Everyone knows that in any market, prices go up and down. But when the rest of the market is selling, it might be a great time to buy, especially if you can get a good deal on your new home. So, don’t be afraid to buy when everyone else is selling. Who knows? It might just lead you to score valuable properties that are worth more than what you’ll be paying for.

Tip #3: Find Opportunities in “Distressed” Markets

When people lose their homes because they can’t pay their mortgages, that’s called a “distressed” market. It can be a great time to buy, but you have to know what you’re doing – and the rules are different for everyone. Make sure you know what’s legal where you live before buying anything in a distressed real estate market.

Tip #4: Find “Undervalued” Properties

Photo of a home in Middletown Louisville Kentucky
Having an expert agent on your side can help identify which homes are undervalued. | Credit: Tre Pryor

An undervalued property is one that nobody wants because it’s in a bad location, or is ugly (like an eyesore), or has some other problem. But if you can make the right improvements, you’ll be able to turn that property around and sell it for a profit. This is one of the primary ways that real estate investors make money!

Tip #5: Buy Low, Then Sell High

One of the best strategies in real estate is to buy low and then sell high. If you’re just starting with real estate investing, this is probably the best way to ensure you have enough money left over for all your other expenses. For instance, you can find a condo for sale for $100,000 but then sell it for $110,000. This way, you’ll make a small profit, but you’ll also have a good bit of cash left over to put into your next project.

Tip #6: Look for “Fixer-uppers”

If you can afford to buy a house that needs fixing up (like the paint is chipping off the walls or half of the kitchen counter is missing), you can buy it at a low price and then sell it for a higher price. Although it might require some “sweat equity,” it is almost always worth it. You’ll make enough money to cover your hard work and the cost of the repairs.

Tip #7: Be Patient with Your Investments

For many people in real estate investing, it’s a long-term game. It might take months or even years to sell your property for the price you’re looking for. But if you don’t panic and sell for less than it’s worth, you should make a profit in the end. In this industry, patience truly is a virtue. So, don’t try to force your property to sell faster by dropping the price – unless you’re willing to take a loss.

Tip #8: Start Immediately

To get started with real estate investing, you have to actually “start.” In any market, now’s the time to buy. If you wait too long, the prices might continue going up and up because so many people are buying right now. Besides, if you’ve already decided to invest in real estate, it only makes sense to start immediately. So, if you want to make money, you don’t have to wait around.

Tip #9: Get Help from an Expert

If you don’t know what you’re doing, it can be easy to make investment mistakes. These will cost you money, time, or even your good reputation. It’s always wise to get help from an expert in the field who can show you how to make the most money as a real estate investor.

Tip #10: Don’t Expect to Get Rich Overnight

Some people do indeed get very rich by investing in real estate – but it doesn’t happen overnight. Real estate takes time, dedication, and sometimes even a lot of money out of your pocket. But if you do it right, it’s totally worth the effort!

Real estate investing can be a very profitable way to invest your money, but it’s not always easy for someone new to the field. That said, these ten tips will help you get started on the right foot.

Make sure you do your research before buying anything and find opportunities in distressed or undervalued markets. This way you’ll have more success with these strategies than if you were just throwing darts at a dartboard!

Tre Pryor, Realtor

Tre Pryor is the leading real estate expert in the city of Louisville. He is a multi-million dollar producer and consistently ranks in the top 1% of Louisville Realtors for homes sold. Tre Pryor has the highest possible rating—5.0 stars on Google—by his clients and is routinely interviewed by the local NBC news. Tre Pryor is a member of the RE/MAX Hall of Fame.