By Joe Arias
It’s no surprise to hear that investing in real estate is one of the best ways to build wealth and gain financial freedom. So many successful people have figured out how to make millions in real estate. When you work hard, constantly aim to learn and grow, and network efficiently, you can also make millions in real estate. Unfortunately, many people go into real estate expecting to make a ton of money without putting in the work. If you do not go about it correctly, you can lose money in real estate instead of gaining it.
Tips for How to Make Millions in Real Estate Investing
Focus on One Method at a Time
There are so many different methods to make millions in real estate investing. But you can’t do it if you are spread too thin. You have to master one thing and get good at it if you want to make money doing it. It’s also important to focus on one method so you can fully understand your goals. If you have multiple methods happening simultaneously, your goals could start to get a little murky.
Not to mention, trying to do everything at once can lead to costly mistakes. You simply won’t have the time, energy, or knowledge to follow through on every avenue.
Many people who are just starting off in real estate investing choose to do either real estate wholesaling or invest in rental properties. Real estate wholesaling is great for beginners because it requires very little to no capital to get started. It can be a little tricky at first getting the connections for your first sale, but it’s an excellent way to get your feet wet with little risk on your end. Investing in rental properties is another great investment when starting off because it’s generally pretty simple and, if done correctly, will result in a steady flow of cash each month. That cash can be reinvested into more real estate investments. As you continue to profit and buy more properties, your portfolio will grow, and you will be that much closing to being able to make millions in real estate.
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Establish Your Goals
Once you have narrowed down the method of real estate investing you want to focus on, you must establish your goals. Consider questions like: What are your short-term goals? What are your long-term goals? What types of properties do you want to invest in? Without goals, you will never make it to becoming a millionaire through real estate. When you know what you want out of your investments and your career, you can begin to make smart business choices that align with your goals. You will have an easier time choosing the investments that help you achieve success. You’ll also have an easier time deciding what types of properties you want to invest in, how you plan to finance them, and how to manage them properly.
Break Down Your Goals Into Steps
Of course, it’s essential to think big when setting your personal and professional goals. You also need to be realistic on what you can accomplish based on your experience, capital, and time. You cannot make millions in real estate overnight. It will take a lot of time and hard work, and you need to be realistic about that with yourself. Now that you’ve established your short-term goal start there. Break that goal down into smaller steps until you reach something actionable that you can do today to get started. Consider how long each step will take until you fully complete your short-term goal. As you complete this step, you may realize that you need to go back and set a new goal. That is absolutely fine and a significant first step toward success. As you begin to work through these steps, you may find that you need to edit or change some.
Don’t Invest All of Your Money on Day One
It can be exciting to get started in real estate investment. However, you should not put all of your money into your very first investment. You are at your least experienced that you will ever be, and you’ll likely make a few mistakes. These mistakes will help you grow as an investor and eventually make millions in real estate, but not if you put all of your money into them right away. The best thing you can do for yourself is to start small and make less expensive investments like single-family homes to start. Once you gain more knowledge, experience, and connections, you can begin to make larger investments.
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Constantly Educate Yourself
The biggest thing you can do for yourself when learning how to make millions in real estate investing is to educate yourself. Learn as much as you can from every experience and every connection you make. Ask lots of questions to others in the field. Consider getting a mentor who aligns with your goals to help you quickly learn how to become as successful as they are. Read books and articles, watch videos, and listen to podcasts. Constantly learning about everything new in real estate will quickly put you ahead of your competition and have you making millions years before anyone else.
Take Action
Education is nothing without action. You can spend years learning everything from every book and article and person you talk to, but it means nothing if you don’t put it into practice. Getting started will be scary, but you’ll never know if you can succeed unless you try. All of the knowledge you gained will help you get started. From there, you’ll gain invaluable experience that will teach you more than any book ever could.
Start an Emergency Fund
Ideally, you will reach a point in your career where you can trust all of your income streams to support you. When you are just starting, you don’t have that type of protection. Try to save at least six months’ worth of expenses in a savings account if anything happens, and you no longer have your income. You never know when something might happen. You may have to make extensive repairs on a property that cost a lot of money. Sometimes your properties may sit vacant and have no income. In situations like these, it’s crucial to be covered financially.
Utilize Mortgage Loans
Many people assume that you need to have a lot of money to get started investing in real estate. You don’t have to be rich to make millions in real estate; you just have to be smart. While there certainly are very wealthy people who do very well in real estate, it isn’t a necessity when you are just getting started.
Many people utilize mortgage loans when buying their first income property. How this works if you take out a loan to pay for a property. When you get tenants, they will pay you enough to cover the loan payments while still making a profit entirely. Utilizing loans allows you to buy a larger property and make more money. Once you start profiting off of that property, you can continue investing in others.
Use Data to Your Advantage
If you understand how to pull and read data and analytics, you have a greater chance of making millions in real estate. Understanding how to track and read numbers is essential for your success. When looking at potential properties, you should pull reports from different investment software and take the time to analyze how profitable those properties could potentially be. Once you get started, being able to analyze the reports from your real estate accounting software will help you make better decisions and understand your profits.
Utilize Appreciation for Profit
While not as guaranteed as profit from tenants, investors can make a lot of money by investing in properties that they predict will appreciate. When a neighborhood is up and coming, and you buy a property for a reasonably low value, rent from your tenants will be low for a few years. Once the neighborhood has become more in-demand and popular, you can start raising the rent. Because property values are high in the area, you won’t detract potential tenants by raising your rent. Plus, if you decide to sell the property, you’ll make a nice profit.
If it’s not an up-and-coming area, there are still things you can do to increase the value of your property and charge more in rent. Making small cosmetic changes and improvements with your profits can result in you making more money.
Build Your Real Estate Team
If you are looking to make millions in real estate, you cannot do it alone. You have to prioritize teamwork and trust in others to help you succeed. There are many different aspects of real estate that plenty of people specialize in. As a beginner in real estate investing, it’s even more critical that you find a real estate team you can trust. These people can help you avoid costly mistakes and succeed in real estate.
The following are some of the most important people that you will want on your real estate team:
- Accountant
- Accountability Partner or Group
- Administrative Assistant
- Attorney
- Bookkeeper
- Cleaning Company
- Electrician
- General Contractor
- Handyman
- Hard Money Lender
- Inspector
- Insurance Agent
- Leasing Agent
- Marketing Coordinator
- Mentor
- Pest Control Company
- Private Money Lender or Equity Partner
- Property Manager
- Title Company
While you certainly won’t need every single one of the people on this list right away, you should start making connections now for the day that you will need them. Not every person you add to your team needs to be a permanent member. As you learn and grow, many of these people will change, but it’s essential to have them to start.
Summary
Making money through real estate investing is not an easy thing to do. If you take the time to learn as much as you can, set realistic goals, specialize in a specific method, and utilize your connections, you can make millions in real estate. To fully unlock your potential, check out our site and learn how to gain financial freedom through real estate investments.
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
RealSuccess Website
Personal Instagram:
https://www.instagram.com/joeariasinvestor/
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Instagram: https://www.instagram.com/realsuccesseducation/
Video For Finding Money from All Day Training (10 Hour Seminar)
https://vimeo.com/manage/videos/528446162
1 Hour Webinar
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