Hundreds of courses claim to help you turn real estate into a seven-figure income, yet so few of them deliver on those promises. Real estate investors and agents will tell you that selling homes and properties isn't all that hard once you sort out the details. These experts have been working in the industry for so long that seven-figure incomes can be the norm. You don't even need to invest exorbitant sums to achieve that level of success.
So what does it take for a regular person to become a successful real estate investor and earn big? Here, 15 members of Forbes Real Estate Council take a deep dive into the things anyone should be doing if they want to use real estate to make a fortune.
1. Do Your Research
Knowledge is key. Learn as much as you can about the market you are investing in, the asset type and comparable assets in the area. Learn as much as possible about different ways to invest in real estate. Too often, the traditional means of investing in real estate overshadows what would oftentimes be better suited for an individual investor. The more you know, the better. - Dillon Deffense, NB Private Capital LLC
2. Live Below Your Means
Start by living below your means, and then use the money you're saving to invest in real estate. You can start by buying a single-family rental or by passively investing in a larger multifamily asset. You may also be eligible to invest some of your retirement account into this asset class using a solo 401(k) or a qualified retirement plan. As you build your portfolio, continue investing the cash flow back into the real estate. - Chris Roberts, Sterling Rhino Capital
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3. Build A Personal Brand For A Niche Market
Build a personal brand that will cater to a niche market of buyers and sellers matching your hobbies and subjects you are passionate about. Cross-market between your real estate services and your personal brand followers to build an immediate sphere of business. - Mor Zucker, Team Denver Homes - RE/MAX Professionals
4. Make Sure You Understand The Risk
Have a unique understanding of the risks or the capability to manage the risks associated with the investment. A good example is an occupier who buys a vacant building, moves their rent-paying business in the building and then sells the now occupied building as an income producing property. - Richard Lackey, City Commercial Real Estate, Inc.
5. Turn Your Home Into A Rental
Turning real estate into a fortune takes time, but if you're a middle-class homeowner, a pivotal moment can come when you're moving. Instead of selling your home, the better wealth-building option could very well be turning your home into a rental property. Assuming that you have a long view and keep the unit occupied with tenants paying you rent, you should see very strong returns. - David Friedman, Knox Financial
6. Start As Soon As Possible
As with any investment, the sooner you enter the market, the sooner you begin building wealth. Taking a long-term, strategic approach to real estate investing and moving aggressively is the best way to grow your fortune. Leverage is your friend, so don't be afraid to borrow money. Stay the course and look for opportunities to trade up and you'll be well on your way! - Megan Micco, Megan Micco, Incorporated
7. Be Patient And Disciplined
The best way for a regular person to create wealth through real estate is to decide on whichever strategy suits you best and be patient. As a wealth builder, real estate is incredible, but it does take time and you need to have discipline. Nothing happens overnight. - Andreas Johansson, Berkovitz Group LLC
8. Use Other People's Money
Learn how to renovate and flip one house. After doing this, find someone that has money and the ability to borrow from a bank. Trade your work/labor and knowledge and gain sweat equity without having the money. Many people do not have the time to fix and flip properties, but would welcome the opportunity to fund the deals with someone they trust. - Bruce McNeilage, Kinloch Partners
9. Invest In Turnkey Rentals
The No. 1 goal should be to achieve financial freedom by investing in turnkey single-family rentals. Once you've bought your time back, you can dedicate yourself 100% to real estate investing. Find investments that generate better ROI, build wealth and leave a legacy for your children. - Eric Martel, MartelTurnkey
10. Watch YouTube Investment Videos
The best tip is to start watching YouTube videos on real estate millionaires, how to get rich in real estate and how to start investing in residential or commercial real estate to make a fortune. You will learn the language and how other successful investors are making money in real estate investing. Always keep learning and take action. - Pamela J. Goodwin, Goodwin Commercial
11. Use The BRRRR Method
Use the BRRRR method—buy, rehab, rent, refinance and repeat. First, find a market where you can buy a home with as little as $10,000 to $20,000 down. Invest another $10,000 fixing up the property, and then have the property reassessed. Assuming it’s now worth more, refinance and use whatever money you’ve gained to purchase your next property. Start small and build equity over time. - Kevin Markarian, Marker Real Estate
12. Pick A Market And Own It
I have two good friends who are slowly building a real estate empire. They are buying affordable single-family homes, spending investment dollars doing basic upgrades and increasing the rent. In my opinion, this is the fastest and easiest way to scale up recurring revenue while building up equity. Pick a market you like and own it. You make money on the buy, not on the sale. - Sean Lyons, Jackson Dearborn Partners
13. Partner With Syndicators
Take it one step at a time by partnering with syndicators who can buy and manage properties. In a syndication, you can bring a small portion of the down payment. Have an active and experienced investor run the deal and make money for you. Then take the profit, reinvest in another deal and build your wealth one step at a time. - Ellie Perlman, Blue Lake Capital LLC
14. Don't Sell If You Have Good Cash Flow
Never sell if you have good cash flow. Real estate has amazing tax benefits that can be realized for many, many years like depreciation and tax-free liquidity-using debt. Once you have recurring income with sound management, you can realize financial freedom for a lifetime. - Ken McElroy, MC Companies
15. Deploy Capital
Keep deploying capital. When you have equity in a property, refinance it out and put that capital into another deal. The magic of leverage is that it can have a compounding effect on your assets when risk is well-managed. Though it's great to own properties free and clear, the return on equity is so much higher when those assets are leveraged and redeployed. - John Kobierowski, ABI Multifamily
