The Smarter Way To Learn How To Start Real Estate Investing
Many average investors have no idea where to start – how to start real estate investing.
Real estate investing is the greatest way to create positive cash flow and build wealth towards your financial freedom.
There is a stereotype Asians have of being rich – “all of us become landlords, and we live off our investment rental income.”
The investment journey begins early for the most prudent of us – we start with our first property in the city we live in or our hometown.
The formula: Save the down payment, get qualified for a bank loan, and then work to pay off the loan in 15 or 25 years.
Many also think that if they can rent out the property, the rental will pay off the bank loan nicely.
Hopefully, the property appreciates, and you have capital gain at the end of 15 years.
The formula works to a certain extent – if you sit down and calculate, the rental income doesn’t completely pay off your monthly mortgage (plus other miscellaneous expenses)
In many Asian cities, most of us invest in condominiums or apartments.
When you look at the breakdown, most investors realise that they are not breaking even if there is a capital gain – what is the projected value of your $1M condo in 15 years?
Making a profit on the sale is not a guarantee.
If you look again at the dream Land lording business, you will need to own multiple properties and lands locally.
What about venturing aboard – Investing In US Real Estate?
Could you create real wealth by starting with the same down payment money to gain your financial freedom?
Like most Asians, you want to be rich billionaires and are always thinking of investing your money to create multiple streams of income.
However, getting started in real estate investing is revenue that the average investor would seriously consider growing their wealth.
As an Asian, if you have no idea where to start – you’re not alone.
Most new investors in real estate don’t know how many different types of real estate investment are available.
Each type of investment property has potential benefits and pitfalls.
That is considered the ideal in Singapore – a high rise condominium with a private pool may work in Bangkok, Jakarta or Florida, USA.
However, the standard of what is considered appropriate or normal in one country may be exorbitant in another country.
For example, a coveted investment property to own in busy cities like Singapore, Kuala Lumpur, Bangkok, Jakarta, Manila, and others – might be a new property project launched for sale in another High-Rise Condominium to be developed downtown.
A low deposit fee, with a 20% down payment and a bank loan for the next 15 to 20 years.
Big-ticket items like condominiums set investors back. Only the mega-rich can afford to buy, and another well do tenants can rent from them.
Many property investors in Asia face the same dilemma – the pricey condo they own is not self-paying if they do the actual math.
When property investors pay a high premium to get a high rise property, it is almost impossible to break even in 2 years.
If you’ve invested in a luxurious condo before, you will know.
Let me break down the different types of real estate investments first.
We look at each type and who they’re best for.
Over the many years we’ve been serving real estate investors, one of the most asked questions on our website, Noble Sky, has been – “How Do I Get Started in Real Estate Investing?”
How Do I Get Started in Real Estate Investing?
We have the same questions when we conduct our Live Workshops in and around Asia.
Our students have been coming to Noble Sky to find the answer to grow their financial wealth.
There is no one simple answer or a solution that fits everyone regarding the ABCs of real estate investing.
This series of articles helps you figure out how YOU can get started with real estate investing.
The guide will provide an overview of the property investment business, and you can choose the best ways to start your own path to financial freedom through real estate investing.
We start your journey by focusing on the specifics that will increase your chance of building a real estate business to minimize the risk of failure or loss.
Your Real Estate Investing Education
Before you invest in properties, it is good that you get educated about important real estate investing concepts.
While there are many ways to learn and build your knowledge base, you can start by
- surfing the internet
- watching YouTube videos
- reading blogs
- reading professional articles
- request for PDF book downloads
- attend an online webinar
- an online workshop or
- request a consult call
Choosing to be open is the best way to learn different strategies to approach real estate investing.
Choose Your Real Estate Niche and Strategies
While there are several angles to consider, let’s start with just one before diving into the various niches and strategies.
There are many ways you can profit from your real estate investing journey.
Once you decide to run your investment like a profitable business and NOT as a hobby – you will look for ways to grow your business.
Investors have certain expectations.
More than anything, investors want to see a return on their investment.
To build and run a successful company, you’ll also need to choose the best tools and systems or hire the best people to help you get your business off the ground.
Gather perspectives from people who have done it before – they are the best people to consult; you don’t have to make the same mistakes that they started with.
Create Your Real Estate Business Plan
When you see your investment as a business, you start to create a firm foundation to maximize the odds of your success.
You want to build a sustainable business that grows profits over the years.
Once you start seeing the fruit of your labour, you will want to increase your investments with multiple projects.
Eventually, you will build and grow a bigger portfolio.
Find the Best Investment Properties
Are the best properties for investment the most expensive?
Do you find it in the swankiest part of the city?
When it comes time to your first investment purchase, you mustn’t overpay for your property.
It is easy to pay the biggest buck to get just one property with a 25-year mortgage.
You need the down payment and a good credit score, i.e. gainfully employed or show proof of funds.
If you can imagine starting with a modest property and growing your portfolio to 10, 50 or even 100 properties?
Or instead of investing in one large, expensive property, you start by investing in smaller, modest houses.
A smaller home will be cheaper to purchase and easier to rent out.
Investing in the first right property is one way to start this investment journey – you begin with modest capital and build up to a million-dollar company.
Financing Real Estate Investing Projects
Starting a real estate investing company is different from going out to buy a holiday cruise worldwide or a TESLA.
The paying methods used are different and often mean the difference between success and failure – what you practice in real life.
You will learn to leverage various financing tools you can use throughout your investing career – right now, the best way to start is to invest with ready CASH.
You start right as you are in full control of your finances without owing the bank.
Mastering Real Estate Investment Marketing
Being successful in real estate investing involves not only finding the right property that is undervalued.
When you purchase a property below the property market – that gap between what you pay and the real property price is your immediate capital gain.
Run that by you again?
Sure, imagine getting the “ugliest house” on the “prettiest street” – everyone knows one, looks to run down and might cost an arm and a leg to refurbished, right?
Well, if you have a way to get it at say 30% of the property value – wouldn’t you say that the 70% off is your Free Equity?
Sounds interesting? And you are interested?
We are buying into a ready property – not a spanking new one.
You put in some work to bring it up to speed, to look like the house next door.
Do you think you can get the same price as the house next door?
The short answer is yes, of course.
You sell that off at a profit.
How To Start Real Estate Investing – What is a good ROI?
In general, to make real estate investing worthwhile, many investors aim for returns that match or exceed the average returns on the S&P 500.
According to Business Insider, between 2010 and 2020, the S&P 500 has with an annual average return of 13.6%
The historical average S&P 500 return is 10%.
To work out the annualized ROI, you can use the Return on Investment (ROI), Calculator.
Real Estate Investment Is Not Buying New
Too many investors buy into the Developer’s marketing of “If you build it, they will buy it.”
The long term strategy is to rent or sell the investment property for capital gains, regardless of any property investing business.
Knowing and Executing Your Exit Strategies
It is naïve to think that all business investments last perpetually.
How you plan to enter and exit your real estate investments is crucial from a business standpoint.
For any investment deals, you will want to understand your exit-strategy options clearly.
How you minimise your risk, whether you sell, rent or dispose of your properties, will determine your success as a professional real estate investor.
Are You Ready to Begin?
Our goal at Noble Sky is to help you overcome your fears and countless questions by providing as much free information online as possible.
We want to help you make the best decisions for your investment needs.
As you make go through this series of articles and learn how real estate investing works, remember to read, reread, note questions, and highlight pertinent information.
As a way of accumulating more knowledge, make notes and research.
Visit Noble Sky Articles or search the site to ask questions.
If you want an interactive way to learn – the easiest method is to sign up to attend the next online programme to get your questions answered.
You can sign up for our
- Webinar here
- Workshop here
- Or you can arrange for Consult Call here to get your questions answered.
Remember, these are Free Service that Noble Sky provides, and you will not be charged to learn more about anything that’s still on your mind.
For those unfamiliar with our site, Noble Sky.co has an online presence on social media.
Getting connected to our network and community of real estate investors is simple.
Once you onboard with us, you have full access to all notifications, curated research lists and invitations to join the projects.
Our community of investors are from 9 countries and counting.
- The Philippines
You can join our Facebook group US Real Estate Investing Success With Noble Sky, with the largest collection of advice for new and experienced investors.
It is free to join and to take part, to keep on learning and growing.
Our articles, webinar, workshops, and one-on-one Consults are the tools you can freely choose to sign up for without obligation.
So how much money do you need to invest in real estate?
Depending on the project, you may need as little as $10,000 to kick start your investment business.
You can invest in a “fix-and-flip” single-family property – join with other investors, or you could easily invest $100,000 on your own into a major residential rebuild project.
Before you start thinking of pulling your finance out, get ready to learn about the Topics for Your Learning first.
TOPIC 1 – How to Invest in Real Estate: An Introduction
TOPIC 2 – Real Estate Investing Education
TOPIC 3 – Real Estate Investments: Niches and Strategies
TOPIC 4 – Create your Real Estate Investing Business Plan
TOPIC 5 – How to Find Investment Properties
TOPIC 6 – Real Estate Financing
TOPIC 7 – Real Estate Marketing
TOPIC 8 – Real Estate Exit Strategies
We will continue with TOPIC 1 – How to Invest in Real Estate: An Introduction.
In the next article.