Real estate investing can be a lucrative endeavor, but it can also be a risky one. That's why it's important to learn from those who have succeeded in the field. Real estate investor Dan Rivers, who made over $180,000 in his most successful home flip, shares some advice for success — and the mistakes he made along the way.
Rivers says that beginners need to "get your knowledge base, build your relationships, and do the deal, in that order." He emphasizes the importance of learning as much as possible about real estate investing before making any moves. This includes reading books, attending seminars, and networking with other investors.
One mistake that Rivers made early on was not doing enough due diligence on a property before purchasing it. He recommends thoroughly researching a property's history, market value, and potential for renovation before making an offer.
Another mistake Rivers made was not building strong enough relationships with contractors and other professionals in the industry. He advises new investors to find reliable contractors and other team members early on and to maintain good relationships with them.
For those with bad credit, investing in real estate may still be possible. Rivers suggests looking for properties that can be purchased with seller financing, which allows buyers to make payments directly to the seller instead of going through a bank.
In recent years, startups have been buying properties and offering shares to first-time real estate investors. This model could have real repercussions for the industry, as it allows individuals to invest in real estate without having to purchase an entire property themselves.
Unlike millennials before them, Gen Z has grown up during a home price boom. Now, they're using technology to claim their share of the real estate market. Apps like Roofstock and Fundrise allow investors to buy and sell real estate without ever leaving their homes.
There are also concerns about the commercial mortgage bond market, which some fear could signal trouble for banks. The market has seen a decline in recent months, with some investors backing out of deals.
Despite these concerns, some real estate investment trusts (REITs) have performed well this month. Top-performing REITs include iStar Inc., Getty Realty Corp., and VICI Properties Inc.
In other news, Blackstone has announced the final close of its latest global real estate fund, Blackstone Real Estate Partners X. The fund raised $25 billion, making it the largest real estate fund ever raised.
Real estate investing can be a complex and sometimes risky endeavor, but learning from the experiences of successful investors like Dan Rivers can help beginners navigate the industry. By building relationships, doing thorough research, and staying up-to-date on market trends, investors can increase their chances of success.