Where to start when you are a real estate investing beginner?Hi, I’m Michael Dominguez from the Doors to Wealth Real Estate Group. I’m going to ask a question, what’s the best advice you can give to a beginner in real estate investing? There are two types of newbies, and I’m going to spend more time talking about them another time. Basically, those that have the ability to qualify for a property and have the downpayment funds to actually qualify to purchase that property, and those that don’t. I’ll spend more time talking about that in another video. A couple of things that are very specific for any newbie investor is the first thing I recommend is that people build their power team.
When you are a real estate investing beginner, surround yourself with people who have been successful at it.I know you hear that from time to time, but what does that exactly mean? The first thing I would advise you to do is to go to local meetup groups. You can go just meet with other investors that are actually doing the same sort of thing. Find out what they’re doing and how well they’re doing with that. Find realtors that have the ability to work with investors and can actually lead you to the right type of properties.
A real estate investing beginner needs to have a power team.Brokerage, brokers, lawyers, all that sort of thing. That’s your power team, contractors, all that stuff. As much as that, the other thing that I always recommend that people do is to look at the market fundamentals of a property in the area. Not every property is necessarily as good as the other one in terms of geographic location. Some towns are significantly better than others. Some of the things that I look at are, in the market fundamentals of a community– Like in the Durham area, which is where I work, we’re looking at:
- How are the property values going?
- Are they going up on a regular basis?
- Is the vacancy rate strong? Is the GDP growth happening?