As the real estate market cools and potentially slides into a downturn (which is natural and not the same as a crash, mind you), investors must examine their risk exposure. New data from ATTOM shows that Southern and Midwestern markets are at the least risk for a serious downturn overall.

2020 turned the real estate market as we know it on its head. While the fundamental rules of the business stayed the same, there’s no denying that the housing market reacted unpredictably. That’s not surprising in light of the uncharted territory of a global pandemic.

By nature, real estate investing isn’t a particularly speculative investment. While the level of speculation varies among investment strategies, real estate will always be more sure (and secure!) than betting on the stocks of unproven start-ups. At the same time, real estate investors may fall into speculative habits – habits that ultimately increase risk.

This year, you might have heard some discouraging things about the real estate market. Naysayers have debated the feasibility of SFR investing when real estate prices are at an all-time high. Various legislative efforts might change the real estate landscape. Here’s the thing – it’s not that real estate investing is a bad idea. It’s more about perspective.

Have you ever watched a trapeze act? Performers dazzle crowds with their impressive aerial feats. They balance, swing, and fly through the air! These acts are entertaining no matter what, but some feel the need to up the ante by removing the safety net. The tension – and entertainment – comes from the knowledge that a single mistake could mean serious injury…even death!

Before embarking on a new and potentially risky venture, you must be adequately prepared. You wouldn’t go on a long trip without packing a suitcase! And the most experienced travelers know that a checklist ensures all the essentials get packed.

In the same way, real estate investors must prepare before they start their investment journey. It’s all too easy for inexperienced investors to get in over their heads. It takes solid preparation to set the stage for success – do you know what you need to do?

Never fear – we’re here to give you the definitive checklist for preparing for your first real estate investment.

Are your investment goals out of reach as a “late bloomer” investor? Sure, in this business, time is of the essence. The sooner you can get started, the better. That doesn’t mean you’re disqualified from real estate investment success if you don’t start until your forties, fifties, or beyond!

Anyone can be a real estate investor. But elite investors – those who genuinely excel and build lasting wealth through real estate – are built different. It’s not that they have some innate greatness or skill that others lack. Instead, they have the drive and discipline to establish habits that bring their investment success to new heights.

Picking the right investment market can be tricky. There are tons of factors that contribute to an area’s potential…or downfall. Real estate investors know the power of location – but picking the right places to own property isn’t always easy. Sometimes, seemingly beneficial qualities, like rapid property appreciation, can backfire when the market becomes untenable to buyers and renters. 

We’ve all heard, “Cash is king.” The phrase was coined in 1980 by author George N. McLean as a business maxim: “Avoid credit, remembering that cash is king, credit is a slave.” The phrase reemerged and grew in popularity with the 1987 stock market crash. We’ve seen plenty of professionals and investors hold to this philosophy since.