If you have done any research on real estate, you know that these investments can be very lucrative. Billionaires from Rockefeller to Warren Buffet have invested in both residential and commercial real estate. You have probably heard stories about people turning a few thousand dollars into millions of dollars in hard assets in just a few years. If you are interested in real estate investments, these are a few tips you should consider.

You Need a Team

Before you invest in your first property, you should build your investment team. First, find a mentor who has a great reputation and is actively investing in the market. Learn everything you can from your mentor, and work with this individual as you make your first few purchases.

You also need at least one real estate agent, mortgage broker, real estate attorney, and CPA to help you run your business, find properties and ensure you work within the law. A reputable contractor with reasonable pricing who can give you priority is also a great asset. Your contractor should also have employees or subcontractors who do highly specialized work, such as electrical and plumbing.

Learn About Costs

Whether you are purchasing move-in properties or you will do some work to update your investments, you need to understand costs. Every property will need yearly maintenance to ensure that it continues to accrue value. You also need to have the property checked for any defects or dangers, which will cost. Although you may not be renovating immediately, you may have to do some renovation over time, so be sure you understand how much it will cost to upgrade each room in the building. You need to be able to look at your properties and identify the repairs and updates you need to make, but you need to know how much they will cost as well.

Know Your Location

Every city, town, and rural area is different. Not only are the prices different, but so are the buyers. Before you invest one penny into any property, you need to learn everything you can about your investment location. Therefore, do some research on the demographic and socioeconomic data of the area. Find out about the rental market and compare it to the building market. Also, look back at the history of the area to see how it has changed over time.

Your investment journey is about to begin. Prepare yourself for the process and experience the benefits of real estate investments.