Ryan Hoggan is a professional Real Estate investor and an expert on the subject. He has built a career by investing in real estate and helping young entrepreneurs start their real estate careers.
I know many of my readers are interested in breaking into the real estate market, so I wanted to garner some advice. This is why I asked Ryan Hoggan to sit down and do an interview with me, where I could ask him everything you need to know to enter the real estate business. Now, let me share that interview with you!
What’s the first thing someone should do when they decide they want to enter the real estate market?
The first thing they should do is think about what kind of real estate they want to invest in and exactly how hands-on they want to be. Do they want to buy and sit on raw land? Are they more interested in land development? Would they rather buy and flip houses?
If they want to buy rental properties, how do they want to take care of the properties? Would they rather go mow the property, fix it up, deal with tenants, and do everything themselves? Or would they rather just finance the rental and contract out the rental management to another company? There are so many ways to enter the real estate market, and you should think about which ways you want to break in.
There really is no beginner-friendly real estate investing. It all depends on the individual and what kind of time they have to commit. Buying and managing a rental property takes a lot of work. Buying raw land takes less maintenance, but it also takes a lot of research to know you’re getting a good deal.
Real estate is always a local market, so I can’t give a general statement. I believe in real estate investing, but many housing markets are way overpriced at the moment.
Not all of them, mind you, but a lot of them. I think we’re going to start seeing the bubble deflating here soon, so if your goal is to buy and flip houses, now probably isn’t the best time. As I said, though, it depends on your local real estate market.
If it was easy to tell, everyone would be extremely successful. The only thing you can really do is take a look at historical prices and use your best judgment.
Do prices seem to be way too high? If you paid that high price, how long would it take to make your money back if you were charging rent? How do prices look in neighboring cities? How’s the local economy, in general? Can people actually afford to pay these prices?
Leverage is your friend. You want to invest with other peoples’ money, believe it or not. Not because you want to make risky investments, but purely from a numbers standpoint.
Your ROI will be much higher if you utilize leverage. This has been proven time and time again, and you can check the math yourself.