Steven Taylor of Taylor Equities on How to Get Started in Real Estate Investing

Steven Taylor of Taylor Equities on How to Get Started in Real Estate Investing 

If you’re interested in becoming a real estate investor, according to Steven Taylor of Taylor Equities, developing a solid understanding of the real estate industry is the best place to start. Like other investment strategies, it is possible to make a profit from a deal, purely based on luck. But, you don’t want to get off on a technicality in business. Long term growth doesn’t happen from one lucky deal. It happens with thorough understanding and extensive knowledge or the market you are working in, along with hard work and dedication.

To successfully get involved in real estate investing, the first step is to do your research. Build your knowledge of the market, the rules of the game, and what has worked in the past. Real estate can return high profits, but before you start purchasing properties, you will have to do the work.

Below, I’ve included a few areas of real estate that I recommend you research before getting started in real estate investing. If these concepts feel beyond your reach, start with reaching out to an expert or mentor who can point you in the right direction.

Understand how to evaluate a property.

The first aspect of real estate investing you should understand is how to evaluate a potential property. Before getting started in real estate, study evaluation methods for acquiring units, buildings, and property. As you build your portfolio, it will be essential that you only add assets that will be beneficial to your big picture goals. You may find that a flashy, exciting property, or a cool fixer-upper may not be worth your time after you properly evaluate it. There are many resources for learning how to inspect units, research potential neighborhoods, consider zoning, and integrate comparative market analysis into your strategy. The goal here is to confidently determine every property’s potential for profit before making purchases. 

Learn how your profit can be affected.

Before getting started in real estate investing, you should make yourself aware of the different ways your profit can be affected. There are several types of cash flow that can change your profit. The most common technique to create cash flow is “flipping.” With this method, real estate investors fix up a building or other property to later resell at an increased price. But, even in this case, other factors will ultimately affect your cash flow, such as your income, how much you pay in taxes, what type of tenants you have, and your vacancies. To understand real estate investing, you must first understand the many ways that your cash flow could be affected.

Build your understanding of mortgages.

In order to have a real grasp on real estate investing, it is necessary that you understand the variety of mortgages available. Before you get started, sit down and research the different types of mortgages, and study the pro’s and con’s of each. This will help ensure that you participate in a deal that will secure your investment. Many new investors don’t spend enough time shopping for the best mortgage, and end up with an interest rate that will not benefit them in the long run. Watch out for mortgage deals that sound too good. If a deal feels unrealistic, get a second opinion. Real estate is a business that isn’t going anywhere.  As Taylor Equities founder Steven Taylor  knows, there should be no rush to jump in. If you learn as much as you can first, you can get started in real estate investing with an advantage.