Real estate investing can be a challenging field, but it can also be an opportunity for success if you approach it with the right attitude and strategy. If you’re ready to get your feet wet and start making the leap into real estate investing, read on for some helpful tips shared by real estate investor Rafi Toledano that will help make the process easier and more successful than you might imagine.
Develop an investing strategy
There are a few key things to keep in mind before diving into real estate investing. Rafi Toledano suggests that a sound real estate investing strategy consists of the following components:
– Real estate selection: The first step in any investment strategy is to make sure that you are aware of the market in which you want to place your money. While it may seem like a good idea to invest in all types of properties, the truth is that some markets will be more successful than others.
According to Rafi Toledano, first, you’ll want to make sure that the real estate market in which you choose to invest is a steady one. You’ll also want to take into account the level of demand and supply in that market. If the real estate market in which you’re interested looks like it is in high demand, but there are relatively few properties for sale in that market, your investment strategy should have you looking for deals or considering whether it’s better to hold out and watch for better deals in the future.
– Research the real estate market: You’ll need to research the local market in which you want to make your investment decisions. You can also utilize real estate investing forums and websites to get this information.
Set realistic purchase and holding goals
According to Rafi Toledano, investing in real estate requires a long-term strategy. You can’t just throw money at a deal and hope it pays off. Successful real estate investing also requires a great deal of patience. Rafi Toledano indicates that it may take months or even years before you make your first profit from a deal. A key part of this patience will come from setting realistic purchase and holding goals for yourself. Real estate investing is often a long-term game, so you’ll likely want to set a purchase goal and a holding goal. With real estate investing, your purchase goal should be conservative. This goal should be based on the amount of capital you want to put toward your real estate deals. Your holding goal should be based on the amount of time you want to hold onto your properties. Your holding goal will help you determine when it is time to sell your properties. It can help to set a holding period that is between 6 and 12 months, depending on your deal. You’ll likely want to sell your properties at year-end for a profit, so you can make up any losses incurred during the holding period. Once you have realistic goals in place, you will be much more likely to succeed.
Put your money to work as soon as possible
It’s almost always better to invest in real estate than to save money in a savings account. While interest rates are low in many bank accounts, they are often significantly higher on government bonds and other types of investments. When you put your money to work in real estate, you are almost guaranteed that you will earn some kind of return. This is not the case with many types of investments. Real estate investing is not a short-term game. It is a long term game and you will most likely need to be in it for the long run. This is why it is important to put your money to work as soon as possible. You can start by researching different types of real estate deals. Make sure that you look at the long term gains you would earn from investing in each deal and not just the short term gains offered by many investments. You can also start by looking for deals in your local area.
Be flexible in your search for deals
Real estate investing is often about deals. The good news is that you can usually take advantage of a number of deals even if they are not right for you. When it comes to selecting properties to invest in, you can be flexible in your search for deals. This is especially important if you are new to real estate investing and don’t have much experience to draw from. If you are flexible when it comes to investing in real estate, it will be easier to invest in deals that are not ideal for you. Rafi Toledano indicates that real estate investing often requires a great deal of flexibility. This is especially true if you want to find deals in your area and make them work for you. If you want to find deals that are outside of your comfort zone, you will need to be flexible with your search criteria.
Bottom line
Real estate can be a great way to make money, but it does require a significant amount of time and patience to find good deals. If you are willing to commit the time to researching deals and nurturing deals, then real estate investing can be a profitable way to make money. Real estate investing is an exciting and challenging field, but it can also be an opportunity for success if you approach it with the right strategy and mindset. Skilled real estate professional, Rafi Toledano recommends making sure that you develop a sound investing strategy, network with other investors, set realistic purchase and holding goals, put your money to work as soon as possible, and be flexible in your search for deals.