5 Ways to Be a Better Real Estate Investor
By Robert Greenberg, VP Marketing, B2R Finance
Now is a great time to invest in single-family rental properties, but the competition can be fierce.
From big investors to small “mom-and-pops,” there are perhaps more investors seeking rental property than ever before. To help you become a better rental property investor, we’ve put together this list of five tips to help you beat your competition to the closing table. While some of these tips require an investment of time, not money, they should all pay off for you down the road.
- Network with wholesalers. Finding properties in neighborhoods with strong rental fundamentals is the key to success. This is where wholesalers —people selling properties below market price — can help you get a good deal. If you are new to investing, you’ll want to become acquainted with wholesalers in your area. One way to do this is to research what real estate investment groups operate in your area and attend their events. If you are a long-time investor, consider renewing your contacts with wholesalers so that your name is top of mind when a property becomes available.
- Reach out directly to property owners. Effectively reaching sellers involves coming up with a compelling direct marketing program. If you’ve sold a house in the past few years, you’ve likely received direct mail pieces with this type of solicitation. If creating direct mail materials isn’t your bailiwick, hire a professional. You want a marketing piece that looks good and provides a compelling message that effectively “sells” you as a good option for people looking to sell their property.
- Find a mentor. There are many notable people who have been investing in real estate for a long time and who often desire to help others become successful investors as well. If you don’t know a potential mentor, attend real estate networking events to meet like-minded and successful investors. To be effective, be respectful of their time and ensure the relationship can grow into a mutually beneficial one.
- Take a class or seminar. Everyone from individual investors to hard money lenders regularly hold seminars on how to be an effective real estate investor. While it can be helpful to learn from the pros, conduct some research on the speakers and sponsors before signing up. It’s possible that the event or seminar doesn’t align with your investment goals or requires a commitment – financial or otherwise – that isn’t always obvious in the promotional materials.
- Follow your gut. Investors, like anyone else, may seek to validate their ideas by asking others what they think. Certainly, if you are reaching out to a person you respect, consider carefully what they have to say. But then, after doing your own exhaustive research, follow your instincts.
B2R Finance offers rental investors innovative lending products to help unlock equity from existing portfolios and provide the cash needed to build rental portfolios nationwide. For more information about how B2R can help you obtain rental property financing, call 800-227-8107 or visit www.b2rfinance.com/borrowers and follow us on Twitter @B2RFinance.
The information on this page is provided for informational purposes only and does not constitute investment, real estate, or legal advice. This information should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. No representations or warranties whatsoever, express or implied, are given as to the accuracy or applicability of the information contained herein. The information may be modified or rendered incorrect by changes in the marketplace or developments in the law, or for any other reason, and may not be applicable to any individual reader’s facts and circumstances.