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The Keys to a Successful Real Estate Investment

Similar to investors who have had great luck in the stock market, many investors have become wealthy through investments in real estate. Although taking on a real estate investment property may seem risky and intimidating to a less experienced investor, a direct investment is a perfect example of how you can make your money work for you. Whether you prefer to hold a property for rental purposes or to fix-and-flip the real estate investment property for a quick profit, both opportunities — with proper research and analysis – can offer impressive returns to seasoned and inexperienced investors alike. Finding your niche is imperative to the overall success of your investment.

The most successful investors are those who have done their homework before diving headfirst into something that sounds like it could be a promising investment. What is considered a great investment to one investor could be another investor’s worst nightmare simply based on individual differences in lifestyle, risk aversion and investment goals. Taking into account the economy and other related market trends, a certain amount of risk is involved as with any investment. However, because a real estate investment property is a tangible asset, it allows investors to control their ROI to a certain extent. Once you find the method that works best for you and your situation, you, too, will be glad you took the risk. Ready to motivate yourself to invest in real estate? Download this free e-book!

You can do it! Obviously, simply obtaining a real estate investment property doesn’t mean you’ll become a billionaire businessman like Warren Buffett. But, there is a significant amount of money to be made in the real estate market in terms of investments. And best of all – no experience is necessary. For instance, look at Justin Pierce, former U.S. marine-turned-real estate investor, who secured an FHA loan in his early 20s that he used to finance his first home, which he purchased for $42,000. After his time in the service and before he was able to pay off his mortgage, he relocated out of state, leaving behind his home that he had only lived in for one year. Using this opportunity to his advantage, Pierce decided to take his chances renting his home out to tenants.

With no experience as a landlord or real estate investor, he soon realized the potential returns on this type of investment. Much to Pierce’s satisfaction, his net worth began to increase steadily all the while his mortgage was being paid down dramatically each month. This additional income would eventually lead him to purchase six rental properties over the next few years – all of which were in his general vicinity, that he managed and maintained himself. Vacancy rates were low and his income stream was impressive. In an effort to take his investment capacity to the next level, it was at this point in time that Pierce decided to put the purchase of additional properties on hold to obtain his real estate license in the state of Virginia. This bolstered his credentials and more importantly, allowed him to buy and sell his properties freely. Partnering with a group of construction workers in 2004, Justin bought a vacant lot and started a construction firm that focused on custom home building and restoration.

This became his main focus until the housing market crash in 2008, which eventually prompted him to shift his attention from new construction and rental homes, to fixing and flipping foreclosed and often distressed properties. This method proved to be lucrative and advantageous throughout the time that home sales were skyrocketing and financing seemed like a nearly impossible option for many prospective home buyers. In terms of current investments, Pierce prides himself on combining his construction background and real estate expertise to transform the most severely distraught properties into someone’s dream home.

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