Learning Hub - Revolution Realty Capital

How To Start Investing in Real Estate: A Beginner’s Guide

Written by Oliver Austria | May 3, 2022 4:01:04 PM

The real estate market is booming like never before, and now is the best time to invest in real estate. Real estate is and has been a major market for a long time and the pandemic only expedited real estate trends. 

There are a lot of different ways to start buying investment property, and it might be confusing. The key is to figure out the best plan property for a good return on investment (ROI). 

We'll walk you through the simple steps on how to start investing in real estate in this in-depth beginner's guide.

Table of Contents:

What Is Real Estate Investing

Real estate investing refers to the purchase, ownership, management, rental, and sale of real estate for profit. Buying investment property might be as simple as purchasing a publicly-traded real estate investment trust (REIT) or funding a more complex NNN property

Over the last 50 years, the real estate market has grown in popularity and has evolved into a widespread investment vehicle that provides a variety of real estate investment opportunities. The National Association of Realtors estimates that American families own $22 trillion in real estate assets.

How To Get Started in Real Estate Investment

Buying investment properties can be tricky especially if you are unfamiliar with the real estate industry. While real estate investing has been around a long time, it is not necessarily an easy area to enter. The best way to invest in real estate is to first have a good strategy. A good strategy starts with a strong real estate market. 

The best real estate markets for 2022 according to PWC's Emerging Trends in Real Estate 2022 list are:

  • Nashville
  • Raleigh/Durham
  • Phoenix
  • Austin
  • Tampa/St. Petersburg
  • Charlotte
  • Dallas/Fort Worth
  • Atlanta
  • Seattle
  • Boston

Below is a step by step guide on how to get into real estate investing:

  1. Choose your investment strategy
  2. Calculate your ROI
  3. Prepare a business plan
  4. Find a lender
  5. Analyze profits and losses

1. Choose an Investment Strategy

As a real estate investor, choosing a strategy will determine what real estate investments to make. For example, do you want to make money from renting property, build a portfolio of rental properties, or start investing in a REIT?

Your goals will determine how you approach each project and how much time and money you devote to it.