August 15, 2022

Beginner's guide to real estate investing

Real estate investment can and should be accessible to everyone, even those who’ve never purchased a property before. For people just getting started, it’s often hard to know where to begin. Many would-be investors spend years accomplishing nothing because one property after another falls through the cracks as procrastination, indecisiveness, or lack of preparation takes its toll.

Successful investors are able to thrive because they have discipline, are always prepared, and are laser-focused on finding properties that fit their defined criteria.

Nada.co is here to help beginners confidently achieve their goal of investing in real estate with tips on making traditional real estate purchases as well as opportunities to get started more quickly and easily (and for less money) than they ever thought possible with Cityfunds.

Define Your Goal

One of the most important, and often overlooked, steps is to simply define your goal. Sure, you might want to be flexible if an opportunity pops up, but the most successful investors stay focused on finding properties that fit their specific criteria.

First, decide what you are looking for. Are you a flipper looking for distressed properties that you can quickly close on, repair, and sell for a profit? Or, are you looking for properties you can buy and hold while collecting rent? Think about locations, features, repairs, maintenance, and the current market in the area.

Having goals in mind will make it easier for you to decide on whether to pursue a property or move on to the next one. New investors tend to waste enormous amounts of time hopping from one property to another, never being able to pull the trigger on any of them. Defining your goals will help you stay focused and able to move quickly when the right opportunity does come up.

With Cityfunds, all of the research and goal setting has been done by experts in real estate, mortgage, and fintech. They select homes based on very specific criteria, and make it possible for you to invest in residential properties in high-demand and supply-constrained cities like Austin, Miami, or Dallas.

Prepare Your Finances

Nothing is more frustrating than finding a great property and watching it slip through your fingers because you cannot get financing secured in time. Sellers of investment grade properties put a premium on speed, and investors with their financing in order and who have the ability to close quickly have a better chance of coming out on top.

Before looking for properties, establish a relationship with a lender. Discuss what their process is and what needs to be done in order to fund the loan quickly. Cash buyers who can produce a proof of funds letter immediately can also reap the benefits of being prepared. Sellers do not want to risk having a sale fall through, and being prepared is one of the hallmarks of a successful investor.

If your budget is tight, if you are rebuilding your credit, or if you just want to diversify your real estate portfolio, you can invest in Cityfunds for as little as $250. Rather than needing enough funds to purchase an entire property, Cityfunds are an index-like fund that provide access to a single city’s residential real estate market.

Choose Properties Wisely

Finding an ideal investment property involves balancing two opposing forces:

#1 - Do not settle and buy a subpar property that does not meet your criteria.

#2 - Understand that the perfect property or deal does not exist.

Before beginning your search, have a budget in mind. Be familiar with the area you are looking in and consider important questions such as: What are typical rents like? How much are property taxes? Is the population growing? This way when a property comes up, you can quickly decide if it should be skipped or deserves further consideration.

If you want to invest in a popular area that’s growing quickly, consider Cityfunds as an easy way to jump in because the experts at Nada have already answered all of those questions for you and selected the best properties.

Putting It All Together

You can absolutely build your own real estate portfolio by getting your own financing squared away, finding properties, and managing the operations of being a landlord yourself. Many people do and go on to build great businesses for themselves.

But don’t underestimate the easier and more efficient way to invest in real estate with Nada Cityfunds. Cityfunds invest like stocks but give you exposure to residential real estate in desirable cities around the US. It’s a great way to get all of the benefits of investing in residential real estate without needing the skills, time, capital, or patience to do it yourself.

With Cityfunds, you take advantage of economies of scale, and have a portfolio that is run by industry experts with decades of experience. Not bad for a beginner! For more information, visit https://www.nada.co/cityfunds.

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