fbpx

Header

Facebook Twitter info(at)thenarteygroup(dotted)com
Scroll Down

Home » Blog » 13 Ways The Average Person Can Build A Real Estate Fortune

13 Ways The Average Person Can Build A Real Estate Fortune

Most of us never encounter the ever-evolving real estate market aside from buying or selling our first house. Non-specialists therefore don’t have an understanding of the kind of money an average person can make from the real estate market with smart investments and wise transactions.

Turning real estate into a fortune isn’t impossible. However, the average person needs to know a bit more about the skills required to make as much as possible from the market. To help out budding entrepreneurs who think the real estate market may be their golden goose, 13 professionals from Forbes Real Estate Council examine how an average person could potentially make a fortune in real estate and what they need to know to get started.

1. Buy Your Home

Oftentimes, being a homeowner can be one of the best ways to build wealth for the average person starting out. FHA loans provide first-time homebuyers with fantastic opportunities for low interest rates, low down payments, in addition to all the tax benefits, such as writing off interest and a slew of other things that come along with that. Do your research and work with a realtor to understand your market. – Ari Rastegar, Rastegar Property Company

2. Consider Passive Investing

Real estate investing can feel complex and out of reach. One way the average person can start making money in real estate is through passive investing. For as little as $500, you can get started by investing in a real estate investment trust (REIT). The REIT raises funds from a group of people to purchase properties, which gives you diversified exposure. – Zachary Maurais, Sunroom

3. Build On What You Have

Live in your primary residence for two years, then sell the property and move to the next property. Use the proceeds as a down payment on an investment property, and you can still qualify to buy another primary residence. After another two years, sell the primary residence again and use those proceeds to buy another investment property. Rinse and repeat! – Nancy Wallace- Laabs, KBN Homes, LLC

4. Learn To Recognize Opportunities

Long-term investments can yield amazing results when the property acquired is carefully selected. In expanding cities, purchasing land in the peripheries of the city often yields excellent results and is more accessible in price. As the city’s population begins to grow, the cost of the property will naturally go up. Evaluate which areas of the cities are expanding and consider investing there. – Rodolfo Delgado, Replay Listings

5. Invest With Experienced Investors

Look for opportunities to invest with others. After realizing that many of our clients would also like to invest with us, we created a syndication model that allows first-time investors and experienced investors to invest together. This allows inexperienced investors to get their feet wet and invest a smaller amount as part of a syndicate. We take on flips to large-scale development projects. – Kofi Nartey, The Kofi Nartey Group – Compass

6. Look For Good Probate Property Deals

As the baby boomer population continues to increase, more and more houses will be inherited by people who often do not want to keep those properties. Investors will be able to find good deals by working probate leads, especially as the number of leads continues to increase. – Kristine Gentry, US Probate Leads

7. Buy Land On Busy Streets

The land on busy streets is usually always among the first properties to get redeveloped. When they do, you can see massive returns. I have seen properties return 10 times the initial price in under five years. Remember to think long term with real estate. Also, you do not have to own where you live if you can invest in an area that can give you a better return as a rental or holding property. – Chris Ryan, Beyond Properties Group (eXp Realty)

8. Invest Time In Communicating

It’s important to stay in tune with market trends. Real estate is one of the best investments a person can make, and it’s crucial to communicate with your client about what, when and where to invest. Our client-centric model relies on transparency, which helps us build long-standing relationships and ensure we’re involved when our clients buy, whether it be a first, second or third home. – Cody Vichinsky, Bespoke Real Estate

9. Buy Half-Baked Properties

It’s not ready yet! Take a look at future development plans in your county or city. Purchase in an area where there are plans for future economic development. Once that area becomes developed, real estate trends historically show larger equity over time with higher net proceeds, especially in major cities with gentrification. – Cheryl Abrams, Re/Max United Real Estate

10. Make It A System

Real estate is a formula. Once you start to understand it more, most people can leverage a system that has the opportunity to yield high rewards. Each market has a niche and each person has their tolerance. Find out what those are and execute a clear game plan. It doesn’t have to be sexy or revolutionary; it just needs to produce the right returns. A good product and a consistent approach will do. – Alex Vasquez, Rhino Realty Property Management

11. Buy At The Right Time

You hear stories all the time about people buying a property 20 years ago for a fraction of the price it’s worth today. Buy a property that is in a good area for the right price and hang onto it. Appreciation isn’t guaranteed, but it’s beautiful knowing how much equity you have in a property years down the road and how the value has gone up over time. – Mike Hambright, FlipNerd.com

12. Pool Your Resources

Most assume real estate is an individual sport, but it’s just the opposite. As a team, you can pool people and their cash to form a legal entity, such as an LLC. You can also pool expertise and delegate responsibility while building a portfolio that is positioned to generate passive income and appreciate. As an added bonus, holding property as a legal entity better protects against unforeseen lawsuits. – Jennifer Anderson, Anderson Coastal Group

13. Be Patient

Real estate investing is not a quick game. If properties are bought with the right mindset in smart areas, it’s entirely reasonable that an investor can buy properties, rent them out and see substantial profits in the long term. The key is to find opportunities that work in the long term and commit to your decisions by staying the course and letting others pay for your investment. – Blake Plumley, BluWater Capital LLC

Get In Touch

    Send --->
    Scroll down

    Contact

      Send --->