Quick Start : How to get into real estate ?

Before getting started have you ever thought why people prefer to invest in real assets like in real-estate ,commodities than in financial assets like stocks, bonds.

Because of the following stats you can consider an investment in real estate is more worthy rather than in stock market because of less risk, more security, more profits ( if undeveloped property , it appreciates in value (long-term) ; if developed property , rental income is added advantage with additional income ).

Statistics of Real Estate in India [ Provided by IBEF ]

Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025, it will contribute 13 per cent of the country’s GDP.

The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. 

Rapid urbanisation in the country is pushing the growth of real estate. More than 70 per cent of India’s GDP will be contributed by the urban areas by 2020. 

Private Equity and Venture Capital investments in the sector have reached US$ 4.47 billion in 2018 and US$ 249 million in Q1 2019. Between 2009-18 (up to October 2018), the Indian real estate sector attracted institutional investments worth US$ 30 billion.

Office space has been driven mostly by growth in ITeS/IT, BFSI, consulting and manufacturing. 

The Government of India has been supportive towards the real estate sector. In August 2015, the Union Cabinet approved 100 Smart City Projects in India. The Government has also raised FDI limits for townships and settlements

development projects to 100% .

Government of India’s Housing for All initiative is expected to bring US$ 1.3 trillion in investments in the housing sector by 2025.The government has also released draft guidelines for investments by Real Estate Investment Trusts (REITs) in the non-residential segment.

learn how to get started in real estate

Is getting into real estate is very hard ?

It depends.

The sentence says that it differ from person to person.

Getting your first pay check from your hard-work to saving 20% of your pay checks regularly to negotiate the deal to get the required amount for the downpayment of the property (deal) to get a loan from banks to paying your EMI's regularly to payoff the mortgages to banks or lenders to get the property on your name .

you can’t win if you don’t play.

But unlike winning the lotto, real estate investing isn’t dumb luck—it’s an art form that requires you to do your due diligence, conduct research, run the numbers, get creative, and take calculated risks in order to succeed. If you’re up for the challenge for entering into real estate game , then it’s time to discover how to get in started in real estate.

Debunking the Myths

Many people think real estate investments are just for rich guys who can take risks because they don’t have hungry mouths to feed? Think again. Women—single and real estate agents who are selling you the property , young age entrepreneurs —are buying properties and profiting from this real estate boom.

Because contrary to popular belief, it doesn’t matter how much money you have or you make. In fact, every successful real estate investor, male or female, started very small. And that’s actually for the best, because there’s a lot to learn and lots of mistakes to be made—the smaller the investment, generally the less costly the mistake.

The market may shift.

Maybe you disagree with economists and think the bubble is about to burst? Well, thankfully, once you learn how to get started in real estate, you’ll realize the market doesn’t really matter. “Real estate investment works in any area, in up, down or sideways markets, and for anyone who invests their time, energy and enthusiasm in getting started. Real estate markets India doesn’t play favourites by gender when it comes to energy, enthusiasm and the desire for success.” That means, it’s an even playing field.  

Tips for Getting Started in Real Estate

Invest for cash flow.

When I speak of real estate, I’m talking about rental real estate that produces a positive cash flow. If you’re investing for cash flow, the market’s direction is no longer important, nor do you need to worry about liquidity. Your goal is to collect monthly rent for profit—and any gain in value of the property itself is a bonus. This long-term play is much less risky than the gurus want investors to believe.

On the flip side, investing for house-flipping purposes is much more market-driven — you could end up spending quite a bit of cash to renovate a property and then find yourself unable to sell it (or being forced to sell for a loss).

That’s just not a gamble I’m interested in making.

Be open to unexpected opportunities.

Open to a wide range of properties, such as single-family houses, duplexes, triplexes, apartment buildings, single office buildings, multiple office buildings, retail stores, retail shopping centers, big box stores, self-storage facilities, industrial warehouses, and so on.

As you can see, there is a ton of variety in real estate, so choose the property that best suits your interest and budget.

Harness the power of OPM.

One of my favorite things about real estate investing is using Other People’s Money (OPM) to invest.On a typical real estate investment, you’ll put down around 20% of the value of the investment while the bank puts down the other 80%. But if you’re really savvy, you can find investors to cover much of the 20% down payment, limiting your cash expenditure, while collecting fees for brokering the deal. This allows you to have the potential for a much greater return on investment (ROI).

I hear a lot of excuses from some people who are contemplating investing in real estate. And I get it: over the years, you’ve been fed misinformation and brainwashed into thinking it’s not for you. The pushback I get is typically in one of one of the areas, so let’s explore that one area and dispel the myths surrounding getting started in real estate investing:

It’s not for me.

Why?Real estate is not a game of luck, your wealth can be destroyed completely if you don't know what you re doing ( Real estate is game which needs some art in negotiating deals , some strategies in developing , some skills while selling the property ).

Some of the top real estate developers were started small . Started by struggling to get their first property in their portfolio. Struggled to get funded for projects. But there are some many of real estate developer companies in India. At first , When all those companies started are not backed by investors or HNI's. Some companies started with money out from their pockets , some started by loans from banks .

Here's what you don't need to generate an income in the property market.

You don't need credit: 

Even if you have poor credit, there are ways forward if you're committed enough. Several of the methods discussed in this piece don't rely on credit whatsoever. In fact, many successful real estate investors started with no credit or even poor credit. 

You don't need significant capital: 

You don't need capital to make money in real estate beyond a few hundred bucks to open escrow. Of course, this means going for the lower-priced homes or distressed properties and flipping contracts. It also means finding hard-money lenders or other investors that can help you push deals through. This could even apply for home renovations as long as you're good at finding the money. 

You don't need major assets: 

There's another misconception that you need to put up major assets in order to secure a contract or purchase a piece of property. You don't need to do this, but you do need to understand how creative financing works. 

Risk comes from what we do without knowing it.

Real estate  have produced more wealth than any other industry, but people still remain skeptical about entering into the fray. Most think that they need to start with some sort of capital, but that's not always the case. Many start as agents starting to facilitate deals by connecting buyers and sellers , some start as contractors and some start as project management professionals in some development companies and people who are backed by investors or banks start as developers in real estate.

The one magic power you do need is to be able to find the money either by lenders or your savings . If you know what you're doing, you can make money in real estate even if you're just starting out.

Most people think that it's easier to make money online than it is to make serious coin in real estate. But both are difficult if you don't know what you're doing. When you get the lay of the land and understand the path forward, you can make strides.

Money earns money, through property appreciation in real estate by huge profits with less risk and most secure.This is what makes real estate a positive investment than stock investing. It all takes one move to know the beauty of investing in real estate.