Did you know that women influence 91% of home-buying purchases? That number may seem a little shocking but it actually makes perfect sense. Women influence as much as 85% of consumer decisions so it makes sense that women would influence 91% of real estate purchases.
However, women only represent around 25% of the investors out there. This article is going to focus on why women should start investing in real estate, and how you can go about doing that being a woman in a man’s industry.
If you are a woman who is looking to learn about investing in real estate you’ve come to the perfect place. Were going to go step by step as I explain how to start investing in real estate on your own.
Conduct research & learn about the field
The first thing you need to be familiar with is the vocabulary and language they use in real estate. Start with some basics like net operating income, return on investment, and capitalization rate. Then move on to more sophisticated phrases like debt coverage ratio, REIT, etc.
Understanding the language used within the real estate industry is imperative for succeeding later down the road. Nevertheless, it’s not enough to just know the terms your associates are using. You have to figure out why you need these terms and how they will be relevant to your situation.
Set your investment goals
Similar to writing a to-do list, setting your goals ahead of time will help you visualize what you want & how you plan on getting there. If you want to reach your real estate goals, they need to be specific, measurable, attainable, relevant, and time-sensitive. All of these aspects will help you be able to tell how close you’re to achieving your goals. Additionally, it will help you recognize what you need to work on to get closer to achieving them.
Most importantly, you need to structure your goals in a way that’s easy for you to interpret and understand. Know your work ethic and your preferences beforehand will make achieving your real estate goals much easier.
There is more than one right way to invest
One of the reasons investing in real estate is so popular now is because there are so many different ways to invest in real estate. A lot of people think that buying a house is just buying a house no matter what. However, contrary to popular belief, the way you invest in real estate very much depends on your goals and purpose.
For example, the most traditional way of investing is to buy a whole property. However, you can invest in REITs, real estate mutual funds or find an online real estate investment platform to work with. There are always real estate partnerships willing to work with potential investors, women, and men.
When it comes to a property you can sit on it and let it appreciate, you can flip it, you can sell it, you can rent it, there are so many options out there so don’t limit yourself to just one option. This is another reason why it’s so important to get educated on real estate before you go and invest. What if sitting on a house is much more plausible for your situation than flipping it? You should go through all your options before deciding.
Establish a passive stream of income
Life has many ways of preventing us from getting all that we want and need during the times that we need it. The burden of having to work every day for a living takes a lot of time and energy out of you. However, this could be solved if you were able to create a passive stream of income instead. Investing in real estate is the perfect way to do that, especially as women.
If you have a family, kids, you want to spend as much time as you possibly can with them, creating a passive stream of income will allow you to do just that. Once your investments reach a certain mass, you will be able to completely live off this passive income. Which will eventually leave you with a secured financial future, and freedom to pursue other interests and passions? This may be your chance to see what true freedom really feels like.
Consider taxes and the possibility of depreciation
Real estate investments are tax-friendly you could say, but it’s not as simple as they make it out to be. This means it might be beneficial to consider finding a reliable professional in the area where you plan on investing. This professional will be familiar and well trained with local laws, customs, and real estate trends. Which will make them a valuable asset to you.
Grow your skills through learning
You see, real estate investments are good for more than just financial gain and freedom. Throwing yourself into the world of real estate allows you to develop new sets of skills that are useful in the everyday business world around us. With investing, you also get an opportunity to expand your knowledge. Learn about the possibilities of your future, and how you can use the skills you’ve acquired in other industries.
Starting off early will put you ahead
Like any other form of investment, the sooner you start the sooner you can see potential returns. Sure, in the beginning, it may seem hard but when it comes to real estate it can often take years for your first returns to start arriving. Also, like most investments, its good to start off small and then increase the investment as time goes on. Which is another reason why you should start as soon as possible?
As you can see there are many benefits that come along with investing in real estate, especially as a woman. However, I will say, investing isn’t just a full-time job. It’s more or less being like an entrepreneur. The days can be hectic and long if you don’t have a structured plan to follow from the very start. I hope this article helped you understand the ins and the outs of investing in real estate being a woman.