Beginner Needs in 2025
Real estate is the biggest type of asset in the world, worth over $230 trillion. It’s also one of the
most popular fields for people who want to start their own businesses. Many are drawn to real
estate because it offers steady income over time, good returns on money invested, and special
tax advantages.
People often think real estate is a safe way to make money quickly.
That idea comes from TV shows that show people buying houses and selling them fast. But not
all real estate investments are easy or low risk. Some require knowledge and patience to make
money. Some take time to make a profit.
If you’re thinking about getting into real estate, this guide gives you a basic idea of the real
estate world and the five key skills you need to be successful in real estate.
There are many types of real estate, and each is used for different purposes.
Before you start investing, it’s important to learn about the different kinds and how they are
allowed to be used in different areas.
Residential real estate is used for people to live in.
That includes single-family homes, multi-family homes, and apartment buildings.
Commercial real estate is used for businesses like stores, offices, warehouses, and factories.
Land refers to the ground and everything on or under it.
It can be used for different purposes like homes, businesses, agriculture, or other specific uses.
Sometimes people can ask the government to change how land is used.
There are many jobs in real estate, but it’s important to know the difference between being a
real estate professional and being an investor.
When you work in real estate, you don’t buy properties yourself. Instead, you help others buy or
sell properties, manage properties, or help with money for property projects.
Real Estate Agent: A real estate agent helps people buy or sell homes.
They are licensed and usually get paid by commission. Their job includes understanding the
local market, helping set prices, marketing homes, handling paperwork, and helping with price
talks.
Property Manager: A property manager looks after homes that are being rented out.
Their job includes finding renters, collecting rent and deposits, handling any repairs, and
checking on the property if the owner is away.
Real Estate Investor: A real estate investor puts money into properties with the hope of making
money by selling them in the future.
Some investors own one or more properties, while others invest with groups. Investors can also
make money by renting out properties. Some work full-time in other jobs and do real estate on
the side.
Real Estate Investors Make Money in Different Ways:
One way is property appreciation.
This means the value of your property goes up over time. You make a profit when you sell the
property at a higher price than you paid. Smart investors buy in areas that are growing so their
property increases in value quickly.
Another way is rental income.
You can rent out a property and make regular money from tenants. You can have long-term or
short-term rentals. If you rent out, you are responsible for collecting rent and fixing any
problems. Some people use property management companies to handle this.
Flipping houses is when you buy a house, fix it up, and sell it for a higher price.
This method is popular due to TV shows that make it look easy. To flip successfully, you need to
know how to make repairs and find good contractors to help with the work and cost estimates.
Real Estate Investment Trusts
If you don’t want to own a property but still want to make money from real estate, you can
invest in real estate investment trusts or REITs.
These work like mutual funds for commercial property. REITs are owned by a company that
either owns or lends money for commercial buildings. You and other people can invest in REITs,
which are publicly traded, so it’s similar to buying stocks.
When the REIT makes money, you get dividends, which you can take out or reinvest.
One good thing about REITs is that they don’t need a big starting amount and you can get
regular payments. But you won’t see any increase in property value, and you’ll have to pay taxes
when you take out your dividends.
Ready to Become a Real Estate Investor?
These 5 Skills Will Help You Find Success.
Investing in real estate can work for anyone, but having some basic skills and knowledge can
help you be more successful.
Here are five important skills to know if you’re just starting out.
- Knowing Real Estate Terms
Real estate has its own set of terms, just like other fields.
It helps to understand these words when you start investing. This guide has covered some, like
REITs, appreciation, and flipping. Here are more terms you should know:
Cash Flow: This is how much money you make from a property after paying for
expenses and costs.
Due Diligence: Before buying a property, you should do your research.
This includes checking the property details, cost estimates, and possible risks. This process is
called due diligence. - -HOA: This stands for Homeowners Association.
These groups manage the look of many neighborhoods and condos. If you buy a property in an
HOA area, you must follow their rules. These can affect your ability to rent or make changes.
You might also need to follow HOA rules in your lease agreement, like keeping the lawn mowed.
Turnkey Property: This is a property that is ready to move in.
Inspection Contingency: This is an option in a contract that lets you inspect a property
before buying.
Based on the findings, you can change the price.
If you’re planning to buy a property, it’s also helpful to understand the different types of
mortgages, like adjustable rate, interest-only, and fixed-rate. - Willingness to Make Long-Term, Thoughtful Decisions
Real estate investment is one of the safer ways to make money, according to Forbes.
However, it usually takes time. You should research the property and its location before
investing. Doing your homework is important, and having a plan for making a profit in the long
run is crucial. - Strong Social Media Presence
Real estate is a popular area to invest, so it’s important to be ready to seize chances.
Having a good presence on social media can help you connect with other investors, find
property deals fast, stay updated on market news, rent your property, and sell when the time is
right. - Soft Skills
Since real estate investors spend a lot of time with others, it’s helpful to have good soft skills.
These include communication, both written and verbal, to build relationships. You should also
work on your negotiation, problem-solving, and organizing abilities. Being willing to learn and
adapt to different market conditions is also important. - Valuable Certifications
If you want to start investing in real estate, taking classes or getting a certificate can help you
understand the industry and how to build a solid investment plan.
Certificate programs are open to anyone, no matter their age or background, and are often
scheduled at times that fit busy schedules.
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