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Investing In Real Estate For Beginners

October 21, 2023

Investing In Real Estate For Beginners

Do you want to start investing in real estate but feel overwhelmed? There’s so much to know before investing in your first property that knowing where to begin can feel impossible. That’s where support from knowledgeable professionals like the team at IntentGen can help. We’ve put together this beginner guide and real estate investing tips to take the confusion out of getting started. Read on to learn more about real estate investing with IntentGen. 

Why You Should Invest in Real Estate

There are endless reasons for investing in real estate for beginners. Every motivation, from short-term profit to long-term passive income, has inspired people to invest in properties. Some of the benefits of this type of investing are:

  • Diversification: Diversifying your investments is some of the most essential financial advice. Having too much of your net worth tied up in one investment leaves you open to greater risk and possible loss. Investing in real estate for beginners is an easy way to diversify your financial portfolio.
  • Appreciation: Unlike most property, real estate often grows in value after purchase. Equipment, vehicles, and other depreciating assets don’t add to your net worth like a sound real estate investment.
  • Tangible Assets: Tangible assets like real estate edify your financial portfolio, making you more attractive to prospective lenders. 
  • Flexibility: Investing in real estate can benefit you in multiple ways, which may help you adapt to changing circumstances. You may rent a property for a time, use it as a primary residence, or even resell it.

How to Start Investing in Real Estate

There are many ways to begin investing in real estate. You may think you need to start big and invest a large sum of money, but that isn’t always the case. There are plenty of approachable ways to make your first real estate investment, such as: 

  • Buy a primary residence: You may not consider your home a real estate investment, but buying a property to live in can be an intelligent way to get your first property under your belt. Many programs exist to help homebuyers purchase a primary residence with little or no money. A primary residence may be the answer if you’re looking for a way to begin your real estate investment without a large cash infusion. There are even tax benefits to holding a mortgage.
  • Real Estate Investment Trust: If you want to invest in real estate but not hold physical property, you can consider a Real Estate Investment Trust or REIT. REITs allow you to invest in shares of commercial properties like office buildings, retail spaces, apartments, and hotels. These types of investments can yield high returns for careful investors. 
  • Purchase a rental property: Buying a rental property is a classic first step in real estate investment. Careful buyers can enjoy the benefits of regular monthly rental income while their property appreciates. A rental property in a desirable location is a precious asset.
  • Real estate investment platforms: A real estate investment platform connects potential investors with development projects that need funding. Investors collect returns, and the platform collects a fee for its services. 

Real Estate Investing Tips

Before you make your first purchase, consider these real estate investment tips:

  • Get to know the real estate market: Before investing in real estate, you need to familiarize yourself with the trends and historical patterns of the market. Before buying a property, know how much similar properties have been selling for, how long they remain on the market, and how much profit they return.
  • Tap trusted experts: Nothing is more valuable than experience, particularly in real estate investing. The best advice for beginners to invest in real estate is to work with dedicated investment professionals like the team at IntentGen to make the most of their investment.
  • Start small: You may think you need to invest big to start making money, but even a small investment can grow. Don’t be afraid to start with a smaller investment that assumes less risk.

Learn More With a Dedicated Financial Advisor

If you’re ready to start investing in real estate and growing your wealth, working with a financial advisor can give you an edge. Our friendly team of professional financial experts will help you assess and grow your net worth and meet your goals. Reach out to us today to learn more about how a financial advisor can help you get started investing in real estate.