We hear a lot about investing in stocks, but let’s talk about investing in the real estate market. Real Estate investing can reap amazing financial benefits if done correctly. According to NAHREP, Latino homeownership has grown to 48.4 in 2021. We are a fast-growing demographic in the real estate market. But how can we take it a step further and become the top ethnic group for real estate investing? Here we discuss the simple ways to start investing in real estate and begin building your generational wealth.
What are the simple ways to invest in Real Estate?
Some easy ways to kickstart your real estate investing journey are to use what you currently have. Victor Celedon, a real estate investor and Airbnb Coach, took his own advice and began renting out a spare room inside his home. “Use what you have. If you already have a house with an extra bedroom, use that.” If you are just starting out, renting out a bedroom through Airbnb or for short-term lease can help you as you start getting into real estate.
If you are confident and/or have the experience, you can invest in a small property. If you are up for the challenge, look into investing outside your location, maybe across the state or outside the state. Other ways you can invest in Real Estate are through house flipping, REITs, and online real estate platforms.
What should I keep in mind when investing in real estate?
To start investing, you need to keep in mind your mentality. Anybody can invest, but how you succeed will depend on your state of mind. Ask yourself if you are really committed to real estate investing. It is not an easy road and there is definitely a learning curve. As part of the Latinx community, it will also mean working on limiting-money beliefs that prevent us from taking wealth-generating risks. You can do it! After doing the internal work and when you are ready to take the dive, start looking at other important factors like:
-Expected Cash Flow and Profit Opportunities
-Loans or other leverage
-New or Used Property
-Your Credit Score
-Other investments like REITs, Bonds, etc.
-Real Estate Market
What is the difference between good debt and bad debt?
There is a common misconception that debt is bad. However, unless you do nothing with your debt and let it sit, it is, in fact bad. The trick to debt is to make sure you are consistent with your payments. “Good debt has the potential to increase your net worth,” says Investopedia. Good debt also provides you with income and value vs an asset that depreciates, like a car. Things like these [car] are considered bad debt since they do not increase in value over time.
What is an Airbnb Ambassador?
Airbnb Ambassadors are just that. They are ambassadors for Airbnb and offer advice and mentoring for those who are interested in investing in real estate. “Ambassadors are Superhosts who help people all over the world discover the benefits of hosting” Ambassadors are able to get extra benefits and rewards for helping someone join Airbnb.
How to overcome limiting beliefs about having a large amount of good debt?
When it comes to debt, the biggest way to overcome limiting beliefs is to do the numbers. If you have properties, do the math and figure out your net worth, the value of your properties and the opportunities available. Debt can be scary, but if you are well-prepared with a strategy and a plan, good debt should not be intimidating. If this is a place where you still struggle, book a financial coaching call with me. The goal is to help you overcome beliefs that are going to keep you away from reaching financial wealth and freedom.
In general, real estate investing can be challenging. It is a new world with new rules. In order to succeed, you have to make smart decisions. Learning the language is also part of the challenge. But the real estate market also has amazing professionals that are willing to work with you hand-in-hand. Don’t let money-limiting beliefs stop you from claiming the wealth that is available to you through investing!
If you would like to learn more about how to overcome money-limiting beliefs, check out this podcast episode with guest Patricia Diaz.
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