7 Tips for the First-Time Real Estate Investor in Queens
Starting your real estate portfolio can seem like a bit of a challenge. But once you learn a few tips, investing in real estate could become one of the best decisions you ever make.
We have put together 7 tips to help the first time real estate investor make their first investment!
Tip #1: Do Your Own Research, and Never, Ever Stop
Do your own research. Don’t rely on agents or real estate professionals to provide you with everything you need to know. Ask questions, and take in as much information as possible. From the minute you decide you want to invest, and throughout your entire investing journey, continue learning and researching. Learn the areas, trends, property specifics and any other information you can get your hands on.
Educate yourself continuously and surround yourself with like-minded individuals who share a common goal. Find people who are doing similar things and share experiences and stories. Find a mentor and learn as much as you can from people who have been there before.
Tip #2: Build Your Team — and Your Network
Even after doing all the research in the world, you’ll want help from professionals to make sure everything is structured properly. Build a team of quality people you can count on: a lawyer, tax accountant, real estate attorney, agent, someone at the bank you can work closely with, and — once you own property — a reliable contractor, cleaning service, landscaper, and property manager. Forming these relationships early means you’ll be prepared when something unexpected comes up.
Networking matters just as much as your formal team. Sign up for local networking events and investment groups — that’s where you’ll hear about off-market deals before they’re publicly listed, and get the inside track when you’re ready to sell. Being connected to the right people often means getting your offer in first, ahead of the competition.
As you go, look for a partner who complements you — someone strong where you’re weak, and vice versa. Maybe they’re great with people and negotiation, while you’re great at running the numbers. A good partnership can help you afford bigger, more profitable investments than you could take on alone.
Tip #3: Know Your Options
There are many options when it comes to starting your real estate portfolio. You don’t have to stick to single- and multi-family rentals — you could lease commercial property to local businesses, rent land for recreational use, or invest in mobile homes. Many investors do well by pursuing options off the beaten path. You can also look into REITs or other investment groups, though working with experienced investors first is an excellent way to learn the ropes.
Once you’ve gotten a feel for your options, consider focusing on a niche — mobile homes, duplexes, or townhomes, for example — rather than spreading yourself across every property type. Specializing lets you become genuinely knowledgeable about one kind of deal instead of skimming the surface on all of them.
Tip #4: Make Sure It’s Right for You
Before you dive in, make sure that what you’re investing in really makes sense for you. Let’s say you’ve heard about all the money to be found in foreclosures — before you purchase, ask yourself, do you really understand what goes into rehabbing a home? Can you fix drywall, replace windows and copper pipes? If you’ve never done it before, you might want to reconsider making a fixer-upper your first investment.
If you’re investing in a rental property, will you be doing the work yourself, or hiring a property manager? Hammer out these details before you commit.
Tip #5: Don’t Get Too Attached
Remember, this isn’t the house you’re living in — your investment should be treated as a business. Just because you wouldn’t personally live there doesn’t mean it isn’t perfect for someone else. As a landlord, treat your tenants with respect and keep the property well-maintained, the same as if you lived there yourself. Even in a purely financial arrangement, being a good landlord is what keeps good tenants around.
Tip #6: Become the Local Expert
Whatever your niche, aim to become the go-to person for that type of real estate in your area. Never stop learning — stay current on both the local Queens market and broader nationwide trends. This is what separates investors who get repeat deals and referrals from those who are always starting from scratch.
Tip #7: Calculate Your Margins
Before you commit, be realistic about your numbers, not hopeful. For a full breakdown of the Cap Rate, the 1% rule, and the 50% rule — the three most common ways investors evaluate whether a property is actually a good deal — see our guide on Rules For Buying Investment Property in Queens. Setting realistic expectations up front is what lets you spot a genuinely good return when you see one.