Succeeding in Your First Real Estate Venture
Succeeding your first real estate venture is both challenging and risky, but with proper guidance, it is possible. Whether your venture involves wholesaling, property management, or joint ventures, there is potential for profit. The information below is designed to help you realize and maximize that potential, and increase your chances of making your first real estate venture a success.
Make a Plan
When you begin your first real estate venture you are essentially starting a new business. As such, you would be wise to approach your investment as a business professional and craft a business plan. Planning not only increases your chances of success, but it also helps potential investors build confidence in your vision.
A solid business plan will reinforce what’s important as you move forward, giving you the ability to brush off minor setbacks. Your plan should include things like the number of units you own, a timeline of when those units should be upgraded, estimated outlays and inflows of cash from rentals, and inputs that will affect the market, such as demographic changes.
Understand the Market
The value of real estate is intimately connected to the economic and social environment of the location you operate in. Investors with a deep knowledge of their market will always maintain an advantage over those with less information.
You must keep up on current trends. This includes factors like mortgage rates, consumer spending habits, the unemployment rate, the crime rate, the desirability of school districts, planning of new parks, libraries, or other commercial or civil developments. This knowledge will ensure that you are poised to predict fluctuations in real estate value and make a strong case to investors.
Master a Niche
It’s important not to try to master every aspect of real estate at once. There will be time to expand your expertise, but as you are starting out you should focus on becoming a guru in a particular niche. This depth of knowledge will ensure long-term success in that particular area.
For example, you may choose to focus on low-income multi-unit housing, or golf course communities targeted to retirees. When making your decision you should consider what leverage your current connections, interests, and skills give you. In the end, mastery in one niche will provide skills and knowledge that translate to others.
Word of mouth is a potent engine of success in any business. Many real estate investor’s derive a large portion of their profits from referrals. This means you must always maintain an air of respect when dealing with associates, clients, renters, and anyone else you come into contact with in the course of your real estate dealings.
Practice active listening. Seek to understand the grievances and desires. This will not only help you gain a positive reputation and capture referrals, but it will also expand your understanding of the market by learning what people want and what their pain points are. You are the face of your business, and you want to present it with enthusiasm and professionalism.
Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.
Hire an Accountant
Taxes are a real estate investor’s greatest annual expense. Anyone who has ever done their own taxes understands how complex tax laws can be, even when filing the most basic returns. Your first real estate venture will only add to this complexity.
Any savvy business owner understands the importance of delegation. Time is money, of course. The time you spend pulling your hair out trying to understand tax law, wondering if you’re filing correctly, and filling out all the documents, can be better spent honing your craft and conducting your business. Hiring an accountant is an investment, not an expense, and the cost is relatively small compared to what a professional might save you.
Real estate is a business that revolves around people and relationships. Creating a professional network will expedite the time it takes you to become successful. Finding a mentor, partners, clients, and other individuals that are going through or have already gone through real estate ventures is of unquantifiable value.
Find local real estate groups in the area where you conduct business, hand out cards generously, don’t shy away from chatting up anyone involved in the business, and support others in succeeding as they may help you further down the road.
Pick A Reputable Hard Money Lender
Purchasing real estate is no small endeavor, and many individuals don’t have the capital required to take advantage of opportunities when they strike. After you have created a cohesive financial strategy for your venture, it’s time to seek funds, and going through traditional financial institutions can be a cumbersome, if it is even an option to begin with.
Fortunately, there are trusted lenders that specialize in hard money and bridge loans that can provide you with the capital you need quickly. Wilshire Quinn is one of those lenders. We understand that time is of the essence for borrowers and we will work to fund your loan in a matter of days. Contact us today and turn your first real estate venture into a reality.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
- Interest Rates from 8% to 10.5%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
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