Investments in Real Estate for Beginners: 7 Common Questions Answered

August 22, 2023


The world of real estate investing is undoubtedly appealing, so it is no wonder you are interested in becoming a part of it. The idea of passive income, high returns, and tax benefits is certainly alluring, and everyone is, at least once in their life, tempted to jump on board and start investing. As you can see on this page, there are numerous reasons why you should do it, but here’s one thing you should always remember. If you are not ready to do the hard work, then this is not for you.

What kind of hard work am I talking about here? Well, you probably did not expect to start turning profits right away and to become a successful investor without actually putting any effort into all of this. Just because you’ve woken up one day and decided that joining this world is a great idea, it doesn’t automatically mean you’ll be able to do it successfully without taking all the right steps and perfecting certain skills.

As a beginner in real estate investing, you must have a lot of questions on your mind. Or, at least, you should have a lot of questions. Getting the answers to those is of utmost importance if you want to earn the profit, you are after and possibly make a name for yourself in the industry. And you most likely do, so let’s start answering those important questions for you.

1. Why Should You Invest in the First Place?

Since you are a responsible individual, you won’t exactly jump on board without knowing why you are doing it. Put differently, you won’t make any investment moves until you check whether it is actually such a good idea in the first place. So, is it? Or, to be more precise, why should you even consider investing in real estate?

If you’d like to jump to the “how” of doing this, here’s a nice read:

As mentioned already, there are plenty of reasons to do this. You can generate wealth and build equity, protect yourself against inflation, earn passive income with rental properties, or even use this as a retirement savings strategy. Plus, investing provides you with the freedom and flexibility you want in life, while keeping you financially safe and secure.

2. Do You Need a Real Estate License?

What most people wonder when they first start toying around with this idea is whether they need to obtain a real estate license to become investors. The simple answer? No, this is not something you need to do. Yet, getting a license could be a great idea, as it opens up a lot of doors and opportunities, gets you connected to the industry, as well as allowing you to avoid paying fees to agents you will be working with if you do not have a license. Ultimately, though, the decision is yours to make.

3. How to Finance Your First Deal?

Whenever embarking on a new adventure or starting a new endeavor, people are concerned about the actual first steps they have to take. In this case, you’re worried about how you will finance your first deal. Getting a loan from a traditional lender is the most common financing option, but there are also private lenders to consider if that’s what you prefer.

4. What Are Your Financial Goals?

If you do not have clear financial goals, then you probably won’t know how to invest in real estate the right way or how to create your strategy. Without a proper strategy, of course, you risk making the wrong moves and generating losses instead of profits. Since that’s not a scenario you’d like to experience, you should think about your financial goals and your strategies before joining this world.

First, decide whether you want to become a part-time or full-time investor. Then, think about whether you want to hold the property for longer, so as to make a larger profit when it appreciates, while also renting it out in the meantime and earning money that way. Or would you rather focus on flipping houses? Answering those specific questions will give you a clearer idea of how to create the perfect strategy for you.

5. How to Search for Leads?

When aiming at closing your first deal and selling a property you bought or renting it out, you will need to find buyers or people looking to rent. How do you search for those leads, though? Do you have any ideas on what to do to attract potential clients? Social media is a free and easy, as well as highly effective, option you can use when aiming to generate leads. Furthermore, there are other marketing tactics you can use to search for leads and succeed in closing your deals.

6. Do You Really Need to Invest in Marketing?

Are you now assuming that investing in marketing is a waste of money and that you should only use those free channels, ignoring all the other strategies and campaigns you could use to your advantage? Well, that’s a wrong assumption. When you learn more about the complexity of the real estate investing world and the importance of doing it right, you will absolutely understand that proper marketing is a must. Content marketing, blogging, and similar strategies will help you not only get a lot of leads, but also establish yourself as an authority in this world and become a recognizable brand.

7. Do You Have an Exit Strategy?

Speaking of strategies, here is another thing to ask yourself. Do you have an exit strategy in place? When you start learning more about the world of real estate investing, you will realize there are three most common exit strategies you can rely on: wholesaling, rehabbing, and renting. All of those come with their own pros and cons, and it is up to you to decide which one to rely on, which will depend on your actual financial goals and your preferences.


I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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