2020’s economic downturn has been hard on many entrepreneurs. But real estate is a long term investment. That’s why property investors like Craig Martinez, Carlos Reyes, and Annetta Powell find themselves really busy, even during the pandemic. Powell is here to share some of her insider tips about how to be successful in the real estate business.
Annetta, how can people enter the real estate market if they don’t have a lot of capital saved up?
Great question. Many people assume that to make money off of real estate, you need to have substantial capital in the first place. This may be true of other industries, but it isn’t the case with property. My career and assets are self-made, and that path can be an option for you too. If you don’t have a lot of capital on standby, I recommend using a hard money lender. A hard money lender is a hard money loan that is a type of loan secured by real property. Hard money loans are considered loans of “last resort” or short-term bridge loans. These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks. This is an excellent way to enter the real estate market and build some capital and credibility before taking on more significant projects.
What about flipping houses? Is that a good way to break into real estate?
Thanks to home development television shows, many people are attracted to the concept of buying run-down homes, renovating them, and “flipping” them for a profit. It’s entirely possible, but you have to be willing to commit a large chunk of time to your project. If you do want to try flipping houses, here’s my advice: look for a beat-up home in a really nice neighborhood. That way, even if you don’t accomplish everything you want to with your renovations, the location will still fetch you an excellent price.
What should people look for when searching for properties to invest in?
A lot of people like to invest in residential properties. But my advice to you is to not limit yourself by only looking at homes. Commercial real estate is also a lucrative market. There will always be somebody looking to rent a commercial space.
Annetta Powell is a real estate mogul and entrepreneur. Even amidst an economic downturn, it’s still worthwhile to learn how to invest in real estate.