Don’t own a house 😞, no capital yet but looking for a break into real estate investing 🤨? Get a career and work in the industry 🧐. Make an income, increase your knowledge, grow your network while building a net worth to invest. Jab, punch, break 💄 👠💰!
A Job, Really?
It’s easy to start investing if you already own a house you can #househack and live for free. You can rent short term to AirBnB for high profits, rent long term partially or fully to tenants or businesses for cashflow, sell the property for a profit and use that as seed investment capital through a 121 or 1031 exemption into a bigger property portfolio. You can use that property as a collateral for a loan / line of credit and easily use your house as an ATM- money stack machine for your next investments. That’s all great but what if you’re just not amongst the happy crowd that own a house or your peers that do don’t see eye to eye with you? How do you get started 😩?!
Let’s be real clear, no harassment needed… peace out ✌. You don’t have to have a JOB 😒 in real estate in order to be an investor. Being an Investor is actually “oppositely” predicated on working on the right side of the cash flow quadrant by becoming a business owner and investor not on working in a Job. But we are looking at HOW and WHERE to start at entry level here 😇!
Step Back, Leap Forward
A good place to start when you really have no other resources and absolutely nowhere else to start (like an inheritance, rich folks, peers in the industry, friends with benefits, a 401k, any pension fund currently based on the stock market, savings devaluating at current rates, valuable stuff piling up in your house you could monetize on e-bay, life insurance you could liquidate, downsizing so you would be more liquid or any other creative way you can think off to start a side hustle online) only then we believe you should look for a job as an income source to build your real estate portfolio. If by any chance there is a way that you could start a business or self-employment, we highly recommend you do that.
Having a job will make it viable to obtain bank financing so that you can purchase your investment properties with a loan rather than your own money. Having a job will also speed up the number of properties you can purchase because you’ll have income coming in regularly to stash away for the next down payment on the next property. Whereas someone with no job will take longer to save money for that next down payment. If you absolutely have to have a Job than it might as well be a career in the real estate industry to help you propel into your “Break Out” 🤗, don’t you agree?
As with everything start with the end goal in mind. Where do you really want to be? If you must than start trading your time (one of your most valuable assets) for money until you can make your money work for you and you can literally buy time by outsourcing hideous, time consuming, repetitive tasks. But have a purpose and have a clear and concise plan in place to execute on. Remember time is precious & priceless, our only finite asset, don't waste yours. Start doing today all that you can, with what you have to move your live with uttermost focus forward into the direction of that goal 🍀.
Next, we will look into some of the potential career paths briefly as you may find one that interests you for an income opportunity as well as the knowledge you’ll gain. We’ll set the optional growth paths expertise and business-wise and what we believe to be the better path made clear. There are many other career options possible (if they resonate with your skills or opportunities start where you can 🤐) but we are mainly interested in building investor’s skills for the long haul.
The Specialists Group
Real Estate Appraisal & Valuation
Real Estate Inspection & Code Enforcement
Real Estate Legal Experts
The Process or Service Group
Real Estate Agent & Brokerage
Development and Construction
Real Estate Financing & Mortgage Officers
The Specialist Group
This career path is for those who want to learn how to value land and determine the value of real estate structures built on the land. An appraisal is important as buyers and sellers rely on this information when transacting a deal, and banks use this information when issuing mortgages to home buyers.
Homebuyers and loan originators will require inspections usually to make sure the purchaser is getting the property in fair condition or understands the faults of the real estate and can then use this information to get a fair market price for the property.
This may sound similar to an appraiser but consider inspectors also as people who have to inspect the property that has pulled construction or renovation permits with the city to improve the property.
The inspector must check the construction or renovation work that was performed and make sure it complies with code.
Real Estate Law
You could also study to become an attorney focused on real estate. There is a need for someone to draw up legal contracts and turn to for legal advice or to file lawsuits in real estate transactions. Most investors want to form a legal entity for their investment business and will turn to attorneys for help setting up the entity, for example, LLC’s or Corporations.
The Process or Service Group
Real Estate Brokerage
Many start out as real estate agents getting to know the local market under a broker and selling real estate for a great commissioned income. As a real estate sales associate, you’ll learn the local market, understand how to transact your own deals to earn or save money in commissions and you’ll build a network of industry professionals to tap into in your investing operations.
You start out as a sales associate hanging your license under a brokerage firm and then after two years usually, you can take education courses and get a brokerage license. You can then work under a broker as a broker associate or start your own firm and act as the broker, hiring sales associates to work under you.
You’ll learn many aspects that tie into investing and the edge real estate professionals have over the average investor on top of saving commissions when you go to sell your own properties.
If you are good with people, you may enjoy property management or maybe you want to learn how it all works in order to someday manage your own real estate investment rental properties.
Property management concentrates on the day-to-day operations of a property. People who work at specific properties are typically fulfilling property management responsibilities. A property manager maintains the value of a property.
Property management includes, but is not limited to:
Maintenance of the property and facilities
Renting dwellings, sites, rooms, etc.
Collecting rent and other charges
Working with staff and contractors
Dealing with resident, tenant and guest issues
Enforcing rules, regulations, covenants, guidelines
Asset management is more of a process of overseeing property performance & planning the timing of capital upgrades, with the goal of enhancing value and maximizing returns to the owner. Asset management does not consist of a single activity that takes place at a discrete moment in time. It takes place over the life cycle of a property (i.e. from acquisition to disposition). It is a process. Often asset management is focused on a portfolio of properties rather than a single property.
Asset management is centered on financial matters; maximizing the return on investment and value of a property and gifted at streamlining operations and repositioning a property to reduce costs and increase income.
Asset managers understand real estate as an investment. Asset management includes tasks such as:
Prepare long term financial forecasts and perform cash flow analysis and compute the internal rate of return in order to determine a property’s financial performance.
Perform due diligence for the acquisition or disposition of property and provide recommendations.
Determine the value of a property and what can be done to increase the value.
Find and work with lenders.
Negotiate on behalf of the owner
Market an asset to increase revenue.
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In real estate equity funds, there is an inherent conflict between portfolio managers and their asset managers, since they work for somewhat divergent goals.
While asset managers are specialists (specializing in specific regions and specific property types) compensated for optimizing the value of their properties and portfolio managers are generalists rewarded for optimizing portfolio returns (multiple asset categories) and investor satisfaction, the successful real estate fund manager is one that can manage this conflict and maintain an efficient management team and portfolio performance.
Development and Construction
The act of manipulating, building on, and/or designing and constructing new uses for real estate is called developing. Developers purchase land and either create or renovate the property, risking their resources and capital in the hopes of investment reward. Sometimes real estate development is also undertaken as a public works project, in which case it is not viewed as an investment in the classic sense. In a sense Development is a growth path for the Fix&Flipper or Land Flipper who is out to undertake on larger developments.
Real Estate Financing & Mortgage Officers
In a nutshell whereas a real estate agent focuses on the buying and selling of a property a loan officer deals with the financial side of obtaining a mortgage.
Loan officers must go through licensing and regular training, and they must act with your fiduciary interests in mind. In other words, a loan officer is your best guide to the home loan process and obtaining the most favorable mortgage or informing you on ways to increase your credit score to get better interest rates or offering down payment coaching.
Don’t confuse a loan officer with a mortgage lender. Act like a Bank or become one entirely to literally bank bigger pieces of fruits with real estate. Syndication or Crowdfunding and Private Money Lender status are just that. The biggest reason investors participate in real estate syndication or crowdfunding for real estate is access to deal flow. Not every investor has the time to search and underwrite hundreds of properties to find a gem to acquire. By getting involved through real estate syndication, investors have access to this deal flow and the ability to invest in real estate without the hassles of property management.
Taking control of your financial future by continuously educating yourself and investing in assets that produce lifetime cash flow gives you the ultimate control of your financial freedom. Do whatever you have to do until you can do what you really want to do!
The Process Of Real Estate Investment
In case, you are looking at a job in real estate as a stepping stone to becoming an investor. You should gravitate towards jobs that inherently help you acquire the knowledge and skills to running a Real Estate Investment Business or set you on a path to evaluate "a Turnkey investment Business” or to join a Syndication as a well rounded, well informed accredited investor.
It’s great to understand all the subsequent processes, systems and different aspects of the investment experience on a high-level view of the ongoing business as a process all the way up to the equivalent scaled supporting businesses.
Ultimately you want to best understand and capitalize on the different asset classes and build wealth based on multiple asset categories and streams of passive & portfolio income to donate to your private foundation and charities at heart. Remember you are in pursuit of inexhaustible intergenerational legacy wealth and it all starts with your first stream of earned income 💰.
Welcome to RealEstatz, start your journey to financial freedom today. Join us! #Free4Real#Free4Real