As someone interested in real estate investing, you might be hesitant to commit to your first investment. You don’t want to put all your eggs in one basket, especially right away.
There are many factors to consider before investing in a property or housing opportunity, and it’s important to start slowly before diving in blindly. It’s a good idea to test the waters, so to speak, to make sure it’s the right path for you.
To help, 15 members of Forbes Real Estate Council share simple ways first-time investors can dip their toes into the world of real estate investments.
1. Become A Passive Investor
In regard to multi-family housing investments, first-time investors often invest as a “passive” investor in their first deal. This allows an experienced investor to lead up the investment and reports to their shareholders. This helps passives understand the ins and outs of how a property performs and low points that can affect performance of the returns. – Caroline Kane, CKR Property Management, LLC
2. Partner With An Experienced Investor
Partnering with fellow investors who are more experienced than you will provide enormous value. Creating these relationships can help you with your first investment decisions, review your projections and discuss the real-life implications of your choices. Consider these relationships the keystones of your community of trust and hang on to them like gold. – Matt Picheny, Picheny
3. Find A Mentor And An Attorney To Guide You
Learn from project deal flow, sponsor backgrounds, projected risk and returns on crowdfunding sites, webinars/conferences that evaluate projects, transactional structures, funding and value creation plans. Assess your skill set, access to capital and partnering opportunities. New investors need experienced advisors, mentors and an experienced real estate attorney to support and advise them. – Anne Keshen