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Traditionally reserved for wealthy individuals, real estate crowdfunding first became accessible to retail investors in 2012 as a way to invest money in real estate assets at a fraction of the cost. The best real estate crowdfunding platforms have an intuitive user experience that makes it easy for you to set up an account. They have reasonable fees, require competitive investment minimums, provide institutional-level research, offer favorable liquidity, allow for reinvestment opportunities, and supply several investment choices. Additionally, the real estate platforms that we recommend offer these features while remaining transparent about the fees they charge, the risks and illiquidity involved with each investment, and the potential tax implications. Our editors and researchers independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, though they may affect the order of products you see listed in our articles. How We Research Real Estate Crowdfunding Platforms Investopedia is dedicated to helping users at all experience levels find the right real estate crowdfunding platform for their investment needs. We’ve conducted extensive research on 19 real estate crowdfunding companies. This guide will explain the criteria we used to evaluate each company’s offerings and our process for how we picked the best overall real estate crowdfunding platform as well as the best real estate crowdfunding companies across eight key categories. Through a combination of subject matter expertise, industry research, and company survey data, we constructed a quantitative model that scores each company based on eight major categories and 38 criteria that are crucial in evaluating the offerings and usability of these platforms. Data Collection and Scoring To collect the data, we sent a digital survey with up to 44 questions to each of the 19 companies we included in our model. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and direct conversations with each company. The data collection process took place between Oct. 17, 2023, and Nov. 15, 2023. How We Score Criteria  Data points are scored on a 0.00 – 1.00 scale Binary criteria (e.g. Yes/No questions) = [0,1] Scaled criteria (e.g., 5-point) = [0.00, 0.25, 0.50, 0.75, 1.00] Continuous criteria: The minimum value in the database was re-scaled to 0.00, the maximum value was re-scaled to 1.00, and everything in between was a fraction of the total number of entries in that criterion (e.g., 10-point criterion = [0.00, 0.10, 0.20, 0.30, 0.40, 0.50, 0.60, 0.70, 0.80, 0.90, 1.00) Real Estate Crowdfunding Evaluation Categories Based on subject matter expertise, we developed the following category weights. Category Weight by Category Fees 15% Account Services 15% Investment Selection 15% Liquidity 12.5% Transparency 12.5% Sectors and Domains 12.5% Customer Support and Usability 10% Educational Offerings 7.5% We then took great care to break these eight categories down into 38 weighted criteria that are unique to companies that allow only accredited investors, and 51 criteria unique to companies that support both accredited and non-accredited investors, resulting in a total of 851 data points that make up our scoring rubric. Number of Weighted Criteria by Category Category Number of Criteria Customer Support and Usability 10 Fees 5 Account Services 5 Educational Offerings 5 Liquidity 4 Transparency 3 Investment Selection 3 Sectors and Domains 3 Fees Real estate crowdfunding platforms charge an assortment of fees for their services. These fees can range from 1% to 4% of the invested amount. While platform and management fees are customary, investors should also remain vigilant about potential hidden costs, such as performance fees or fees associated with early withdrawal or secondary market trading. It is crucial for investors to carefully review a platform’s fee structure, terms, and conditions to gain a comprehensive understanding of the expenses they may incur throughout their real estate crowdfunding investment journey. This entire section accounts for 15% of the total weighted score in our evaluation. To evaluate this category, we looked at the following fees and if the platform charged the fee to its clients. Platform Fees We scored this item on a continuous scale of 0.00 to 1.00. Companies that charge lower fees received higher scores, while companies with higher fees received lower scores. Management Fees When scoring this item on a continuous scale of 0.00 to 1.00, companies that charge lower fees received higher scores. Conversely, companies that charge higher fees received lower scores. Investment-Specific Fees We scored this item on a continuous scale of 0.00 to 1.00. Companies that demand lower fees received higher scores, while companies that charge higher fees received lower scores. Other Fees When scoring this item on a continuous scale of 0.00 to 1.00, companies that charge lower fees received higher scores. At the opposite end of the spectrum, companies that charge higher fees received lower scores. Investment Selection Real estate crowdfunding platforms provide a diverse range of investment opportunities, including residential, commercial, and industrial properties. They typically offer detailed project profiles, including property type, location, financial projections, and expected returns. Investors can review these options, conduct due diligence, and select projects that align with their financial goals and risk tolerance. Many platforms also allow for fractional investing, enabling individuals to diversify their real estate portfolio across various properties. The ability to choose from a curated selection of investments empowers investors to tailor their real estate holdings to suit their preferences and investment strategy. This entire section accounts for 15% of the total weighted score in our evaluation. To evaluate this category, we looked to see if platforms made the following available to clients. Investment Selection We scored this item on a scale of 0.00 to 4.00. Companies received 1 point for each investment selection provided, up to a maximum of 4.00. Companies that provide access to equity-based, debt-based, REIT, and private REIT investments received the highest score of 4.00, while companies with fewer investments received relative scores. Other Alternative Investments We scored this item on a scale of 0.00 to 6.00. Companies were given 1 point

If you want more clients as a real estate agent, lead generation software could be the answer. These programs give you the contact information of people who have shown interest in buying or selling a home in your target area. While that can save you the time of finding all these prospects yourself, not every lead generation software is worth the cost. To help you find the right fit, we reviewed several of the best real estate lead generation services on factors like features, pricing, and customer reviews. We also looked for services that generated leads across various platforms, including social media, multiple listing services (MLS), brokerage websites, and listing sites. Here are the best real estate lead generation companies and how they could help your business. Best Real Estate Lead Generation Companies 2024 Best Overall: Market Leader Best for Automation: Zurple Best for Finding Buyers: Zillow Premier Agent Best for Getting Listings: Offrs Best Price: REDX BEST OVERALL Market Leader Year Founded: 19991 Website: https://www.marketleader.com/ Lead Type(s): Exclusive buyer and seller  LEARN MORE Market Leader takes the crown as the best overall lead generation company thanks to its comprehensive features, the fact that it provides both buyer and seller leads, and its user-friendly setup process. Market Leader stands out for offering exclusive leads. If you buy a lead from them, Market Leader will not sell it again to another agent competing with you. You are also guaranteed a minimum number of leads per month. Market Leader collects leads from its website Housevalues.com, which sellers use to get a valuation on their homes. Market Leader also collects contacts from Leads Direct. It uses pay-per-click ads for consumers looking at home listings. Market Leader’s pricing depends on how many monthly leads you sign up for. You pay per lead as well as a monthly fee. When you sign up, you create a profile and customize the alerts to your target location. On top of the leads, Market Leader includes a customer relationship management software (CRM) with lead-nurturing tools. Through Market Leader Professional, you can create a customized lead capture website for your business without hiring your own developer.2 When visitors register on the website, you collect data for your CRM and can also set up automated marketing replies. Market Leader received positive user reviews, for the most part. Positive reviews liked the quality and consistency of the leads, and said the Market Leader system was easy to use. Negative reviews said the company sometimes provides unreliable leads, and customer service wasn’t always helpful, especially with cancellations and refunds. Pros & Cons Pros Guaranteed monthly leads that are exclusive Offers buyer and seller real estate leads Includes a CRM with lead-nurturing tools Has plans for agents and brokers Cons Third-party reviews said leads were unreliable Complaints about customer service, including for cancellations and refunds Charges a monthly fee and per-lead fees BEST FOR AUTOMATIONZurple Year Founded: 20093 Website: https://zurple.com/ Lead Type(s): Exclusive buyer and seller LEARN MORE If you want help turning leads into sales, consider Zurple. It is our top choice for automation. Zurple not only generates exclusive buyer and seller leads but it also automatically nurtures the leads. The software runs conversations with each contact using behavior-driven messages matched to the situation. You can personalize the messages yourself and have them sent from your email address. When Zurple finds a hot lead who is ready to move forward, the software will notify you to take over the conversation. Zurple makes it easy to join and plan your campaign. When you sign up with Zurple, you enter your marketing budget. Zurple will then optimize your budget by only using targeted ads in your specific areas, including sub-areas within ZIP codes. If you generate leads from other sites, like Zillow, you can upload them into Zurple’s automated contact system. Zurple also comes with a CRM for managing your leads as well as tools to create and customize your ads and website. You can learn more about using Zurple’s system through its blog and success center. Most past customers had good things to say about Zurple. They were especially pleased about how Zurple converted leads into clients for them, praising the “set it and forget it” system. Some reviews complained about problems canceling accounts, including being billed after sending a cancellation request. Others said they had trouble dealing with customer support.4 Pros & Cons Pros Automated software helps convert leads Offers personalized, automated responses Agents can upload their own leads into the contact system Cons User reviews complained about cancellation issues Some reviews said customer service was not responsive BEST FOR FINDING BUYERSZillow Premier Agent Year Founded: 20055 Website: https://www.zillow.com/premier-agent/ Lead Type(s): Buyer LEARN MORE Zillow Premier Agent is the best real estate lead generation company for finding buyers, thanks to its access to Zillow. Zillow is one of the most popular websites for homebuyers looking for price information. Zillow Premier Agent generates leads from these visitors. The system is different from the typical lead generation service. Zillow Premier Agent doesn’t send you leads directly. Instead, you pay to be featured on pages throughout Zillow and Trulia (a sister site), such as on listings and personalized websites. Potential buyers then see your name and contact information while browsing homes. You get started by speaking with a member of the support team for Zillow Premier Agent. They will explain how the site works and plan the best use of your marketing budget. The cost depends on the area you’re targeting based on the average home prices and the number of competing agents. However, Zillow has no minimum monthly charge or sign-up fee. Your budget just determines the number of ads. Third-party reviews had mixed feedback for Zillow Premier Agent. Some praised the leads for being very high-quality, while others did not find them as useful and said they were overpriced for the value.6  Pros & Cons Pros Generates leads through Zillow Lets agents share contact information on Zillow listings No monthly minimum or sign-up charge Cons Some complaints about lead quality Non-exclusive leads; some may already have an agent

Rental real estate investing can be a rewarding way to diversify your portfolio, generate passive income, and build wealth. But it’s not easy—or quick. Whether you’re an experienced real estate investor or just starting out, education is an essential part of the process. After all, the more knowledge you have, the easier it will be to develop the right skills, refine your strategy, and become profitable. And seeking advice from experts is a great way to learn. With so many real estate investing books, choosing the best ones can be difficult and time-consuming. So, we’ve done the hard work for you by evaluating dozens of books from respected industry experts. Here are the 10 best books to help you navigate your rental real estate journey—from finding properties and tenants to handling financing and taxes. Note that most of these books are available in print, ebook, and audio formats.     Best Overall: The Book on Rental Property Investing Courtesy of Amazon BUY ON AMAZON Our top overall pick was written by Brandon Turner, an active real estate investor and co-host of the BiggerPockets podcast. The back-cover blurb boasts that the book has “Every strategy, tool, tip, and technique you need to become a millionaire rental property investor!” While the book might not cover every detail about rental property investing, it is packed with enough actionable information and strategies to help you get started. This 2015 book covers all the topics you would expect in enthusiastic fashion, including keys to rental property success, building your real estate team, analyzing rental properties, financing deals, the due diligence process, closing, managing your rentals, and exit strategies—including details about 1031 exchanges. Turner also includes four sample plans to emphasize that there are multiple ways to achieve your goals.   Best for Beginners: How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started Courtesy of Amazon BUY ON AMAZON Authors Joshua Dorkin and Brandon Turner are real estate investors and co-hosts of the BiggerPockets podcast. Their 2018 book is an easy-to-read, easy-to-understand introduction to several popular investing strategies, including house flipping, wholesaling, short-term rentals, turnkey investing, BRRRR (buy, rehabilitate, rent, refinance, repeat) investing, and house hacking. The book is an ideal starting point for beginners and explains how to invest even if you have a full-time job, no money, or bad credit. It also offers tips for earning more at work (or on the side), so you can invest more. The book has lots of stories taken from the authors’ podcast. These are motivational, real-life tales that give readers an idea about what real estate investing is like—and that there’s no one right way to go about it. According to the Investopedia Financial Review Board, the book “makes investing in real estate approachable and understandable for anyone new to real estate. Even experienced real estate investors could likely round out their knowledge with this quick and informative read.”   Best for Multifamily Properties: ABCs of Real Estate Investing Courtesy of Amazon BUY ON AMAZON Author Ken McElroy has decades of experience in multifamily asset and property management and development; he’s also the real estate advisor to Robert Kiyosaki of The Rich Dad Co. Rather than offering a bird’s eye view of real estate investing, McElroy’s 2004 book focuses primarily on multifamily properties: identifying your market, setting target property parameters, evaluating potential investment opportunities, making offers, performing your due diligence, negotiating deals, and (eventually) maximizing the property’s profit potential. Like many other real estate investing books, it discusses the importance of building your team, pointing out that one of the biggest rookie mistakes is trying to do everything yourself. The recommended list of team members is daunting: According to the author, you’ll need a business team (an attorney and an accountant), a property search team (real estate broker and property manager), an offer team (attorney, lender, investors, and contractors), and “other” team members, including an insurance agent, income tax consultant, and surveyor. Still, considering that the book focuses on multifamily properties and larger deals, it makes sense that you would need a big team to get the job done.   Best for Financing Deals: The Book on Investing in Real Estate with No (and Low) Money Down Courtesy of Amazon BUY ON AMAZON One of the biggest obstacles that real estate investors face is financing. Brandon Turner’s 2020 book (in its second edition) covers multiple solutions, from the obvious to the lesser known, including Federal Housing Administration (FHA) loans, home equity lines of credit (HELOCs), partnerships, private money, hard money, seller financing, lease options, wholesaling, and syndication. Of course, investors often use multiple types of financing, and the “Creative Combinations” chapter emphasizes that you can mix and match various approaches to fit your deal or property. Like Turner’s other books, this one is easy to read and conversational. It includes real-life examples to provide inspiration and break up the educational content (a “bonus chapter” at the end of the book briefly highlights 12 more investor stories). If financing is holding you back from entering the real estate investing world, this book is worth a read, even if it just gets you thinking about creative solutions.    Best for New Landlords: The Book on Managing Rental Properties Courtesy of Amazon BUY ON AMAZON Heather and Brandon Turner’s 2015 book focuses on the management side of residential rentals, with lots of actionable advice on how to be an effective landlord. The book dives into topics like Fair Housing, advertising your vacancy, tenant screening, the application process, and lease agreements. It also tackles tenant management, finding and supervising contractors, and dealing with problems—from repairs and bounced rent checks to abandonment and eviction. The Turners emphasize that no matter how good you are at finding real estate deals, you have to manage them correctly if you want to be a successful investor. And while many investors hire property managers, this book is designed for those who want to manage their own rentals.    Best for Flippers: The Book on Flipping Houses BUY ON AMAZON Flipping properties is an attractive option for many current and future real estate investors, but this endeavor requires much more up-front knowledge than most realize. J Scott, a multifamily

A real estate consultant provides expert advice and recommendations to clients looking to purchase or develop property. Real estate consultants generally work with commercial real estate investors rather than residential buyers and sellers. They are also referred to as “real estate counselors” or “real estate advisors.” Real estate consultants typically have a real estate license and may hold a Counselors of Real Estate (CRE) designation.1 Think of real estate consultants as “behind the scenes” experts. They perform extensive research in order to help guide clients’ decision-making during every step of a project. Rather than focusing on a transaction, their job is to ensure overall investment success for the client.2 A real estate consultant typically works for a large consulting firm or as an independent consultant. Their compensation depends on the type of work they do, but most real estate consultants are paid a flat or hourly fee.3 KEY TAKEAWAYS A real estate consultant provides a variety of services to help maximize the potential return on an investment in real estate. Property developers, builders, real estate investors, and investment banks rely on real estate consultants for professional advice. There are key differences between a real estate consultant and a real estate agent. What Does a Real Estate Consultant Do? Real estate consultants guide client decisions based on extensive research and industry expertise. The first step is to have an initial meeting with the client to discuss primary and secondary objectives. When the objectives are defined, a real estate consultant formulates a plan to achieve them in the most cost-effective way. A real estate consultant’s exact role depends on the type of client with whom they work. For example, consultants working on a property development project are often hired before the land is even secured. The client relies on the real estate consultant to confirm the viability of the investment. The consultant does this by visiting the proposed job site, meeting with local real estate professionals, and analyzing market trends. Types of Real Estate Consulting Real estate consultants often specialize in working with one type of business, but some may work with a variety of clients. Here are some examples of common types of real estate consulting. Property Development Real estate consultants are hired to advise on commercial and real estate development projects from start to finish. This may involve researching potential sites for the development, conducting feasibility reports, and running competitive analyses.4 Consultants who work for developers usually have a background in sales or marketing. Developers look to consultants to provide insight into buyer trends to produce a property that is both competitive and unusual in the market.5 Some real estate consultants may also work with interior designers. Real Estate Investors Investors looking to add real estate to their portfolio may hire a real estate consultant to help manage the process. In this role, the real estate consultant conducts economic analysis to ensure the investment is a sound financial decision for the buyer.5 This may start with an analysis of the pricing, supply, and demand of the property type or location. The consultant then evaluates the marketability of the property to determine profits under current market conditions. The outcomes of this research are used to estimate the risk to the buyer and the potential return on investment. The consultant may also review property appraisals and insurance policies.3 Consulting Firms Large consulting firms offer a wide range of services to help determine the value of a development project or real estate investment. They provide real estate consulting services to real estate investment trusts (REITs), other investors, lenders, business owners, and corporate real estate groups. Real estate consultants who work for consulting firms perform due diligence, conduct market studies, and offer lease advisory and portfolio services. They also assist with real estate portfolio positioning, strategy, and financial analytics and modeling.67 Residential Clients Some real estate agents offer consulting services in addition to their normal real estate business. In this case, the consultant would help the buyer determine whether a purchase was a good investment. They will consider the buyer’s goals and look at all aspects of a potential transaction. Because they are not working for commission, the consultant is able to provide advice that is completely objective and unbiased. How Real Estate Consultants Are Paid A real estate consultant’s pay depends on the client and the type of firm with which they work. Unlike a real estate agent, who is paid on commission, a real estate consultant is paid a flat or hourly rate or paid by deliverable. They may also charge an hourly consulting fee. According to Zippia, the average real estate consultant earns about $94,000 per year, with an entry-level average of $62,000. However, this figure would likely be greater for a consultant working for a large, established firm.8 Real Estate Consultant vs. Real Estate Agent A real estate agent is a licensed professional hired to facilitate the purchase or sale of real estate. Most states require real estate agents to work through a real estate broker, who has additional training and licenses.9 A real estate agent may be a buyer’s agent, a seller’s agent, or in some cases both. A seller’s agent, also known as a listing agent, lists the property and manages the offers from prospective buyers. A buyer’s agent recommends properties to a buyer and assists with making an offer. The two agents work on behalf of their clients to finalize an offer and complete a contract. They negotiate with each other to try and secure the best deal for their clients.9 Real estate agents are not required to research or provide advice on real estate purchases. Their job is to ensure a smooth transaction for buyers and sellers. They are usually paid a commission based on a percentage of the property sale price.10 The Bottom Line Real estate consultants provide a variety of services to different types of clients. However, no matter what business they are in, clients ultimately hire a real estate consultant to ensure that they will achieve their desired return on investment.

What Is Real Estate? Real estate is defined as the land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made. Real estate is a form of real property. It differs from personal property, which is not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment. KEY TAKEAWAYS Real estate is considered real property that includes land and anything permanently attached to it or built on it, whether natural or man-made. There are five main categories of real estate which include residential, commercial, industrial, raw land, and special use. Investing in real estate includes purchasing a home, rental property, or land. Indirect investment in real estate can be made via REITs or through pooled real estate investment. Understanding Real Estate The terms land, real estate, and real property are often used interchangeably, but there are distinctions. Land refers to the earth’s surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water. The physical characteristics of land include its immobility, indestructibility, and uniqueness, where each parcel of land differs geographically. Real estate encompasses the land, plus any permanent man-made additions, such as houses and other buildings. Any additions or changes to the land that affects the property’s value are called an improvement. Once land is improved, the total capital and labor used to build the improvement represent a sizable fixed investment. Though a building can be razed, improvements like drainage, electricity, water and sewer systems tend to be permanent. Real property includes the land and additions to the land plus the rights inherent to its ownership and usage. Real Estate Agent A real estate agent is a licensed professional who arranges real estate transactions, matching buyers and sellers and acting as their representatives in negotiations. What Are Types of Real Estate? Residential real estate: Any property used for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. Commercial real estate: Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters. Industrial real estate: Any property used for manufacturing, production, distribution, storage, and research and development. Land: Includes undeveloped property, vacant land, and agricultural lands such as farms, orchards, ranches, and timberland. Special purpose: Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools. The Economics of Real Estate Real estate is a critical driver of economic growth in the U.S., and housing starts, the number of new residential construction projects in any given month, released by the U.S. Census Bureau, is a key economic indicator. The report includes building permits, housing starts, and housing completions data, for single-family homes, homes with 2-4 units, and multifamily buildings with five or more units, such as apartment complexes1 Investors and analysts keep a close eye on housing starts because the numbers can provide a general sense of economic direction. Moreover, the types of new housing starts can give clues about how the economy is developing. If housing starts indicate fewer single-family and more multifamily starts, it could signal an impending supply shortage for single-family homes, driving up home prices. The following chart shows 20 years of housing starts, from Jan. 1, 2000, to Feb. 1, 2020.2 20 years of housing starts. Source: Federal Reserve Bank of St. Louis. How to Invest in Real Estate Some of the most common ways to invest in real estate include homeownership, investment or rental properties, and house flipping. One type of real estate investor is a real estate wholesaler who contracts a home with a seller, then finds an interested party to buy it. Real estate wholesalers generally find and contract distressed properties but don’t do any renovations or additions. The earnings from investment in real estate are garnered from revenue from rent or leases, and appreciation of the real estate’s value. According to ATTOM, which oversees the nation’s premier property database, the year-end 2021 U.S. home sales report shows that home sellers nationwide realized a profit of $94,092, a 45.3%return on investment, up 45% from $64,931 in 2020, and up 71% from $55,000 two years ago.3 Real estate is dramatically affected by its location and factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, municipal services, and property taxes can affect the value of the real estate. Pros Offers steady income Offers capital appreciation Diversifies portfolio Can be bought with leverage Cons Is usually illiquid Influenced by highly local factors Requires big initial capital outlay May require active management and expertise Investing in real estate indirectly is done through a real estate investment trust (REIT), a company that holds a portfolio of income-producing real estate. There are several types of REITs, including equity, mortgage, and hybrid REITs, and are classified based on how their shares are bought and sold, such as publicly-traded REITs, public non-traded REITs, and private REITs. The most popular way to invest in a REIT is to buy shares that are publicly traded on an exchange. The shares trade like any other security traded on an exchange such as stocks and makes REITs very liquid and transparent. Income from REITs is earned through dividend payments and appreciation of the shares. In addition to individual REITs, investors can trade in real estate mutual funds and real estate exchange-traded funds (ETFs). Another option for investing in real estate is via mortgage-backed securities (MBS), such as through the Vanguard Mortgage-Backed Securities ETF (VMBS), made up of federal agency-backed MBS that have minimum pools of $1 billion and minimum maturity of one year.4 or the iShares MBS ETF (MBB) which focuses on fixed-rate mortgage securities and tracks the Bloomberg U.S. MBS Index. Its holdings include bonds issued or guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac.5 What We Like Liquidity Diversification Steady dividends Risk-adjusted returns What We Don’t Like Low growth/low capital appreciation Not tax-advantaged Subject to market risk High fees Mortgage lending discrimination is illegal. If you think you’ve been discriminated against based on race, religion, sex, marital status, use of

Investing in real estate can be a success, but going it alone can be challenging and highly risky. Joint ventures, wholesaling, and property management are just a few ways investors can profit from real estate. It also takes a little savvy to become successful in this highly competitive sector. Below, we show it takes more than moxie and luck, detailing the 10 habits that highly effective real estate investors share. KEY TAKEAWAYS Real estate is a challenging business that requires knowledge, talent, organization, networking, and perseverance. Becoming knowledgeable and educated about the real estate market is crucial, but this often requires more than just in-class learning. Understanding the risks, working with an accountant, finding help, and building a network are all part of finding success as a real estate investor. While certain universities offer general coursework and disciplinary programs that can benefit real estate investors, a degree is not necessarily a prerequisite to be profitable in real estate investing. Whether an investor has a degree or not, there are certain characteristics that top real estate investors commonly possess. 1. They Are Planners Real estate investors must be business professionals to establish and achieve short- and long-term goals. A business plan is a good starting point, as it enables you to visualize the big picture and focus on what’s important, rather than any minor setbacks. Real estate investing can be complicated and demanding, and a solid plan can keep you organized and on task. The plan should include estimated outlays and inflows of cash from rentals, how many units to own, when to refurbish or upgrade units, demographic changes, and anything else that could affect your investment over time. 2. They Do Their Homework Effective real estate investors acquire in-depth knowledge of their selected markets. Keeping abreast of current trends—including any changes in consumer spending habits, mortgage rates, and the unemployment rate—prepares you to adjust to changing conditions. This enables you to predict when trends may change and create potential opportunities. But this all starts with learning about your area of the real estate market. International real estate investor and developer Doron Yacobi agrees: “If you don’t know a neighborhood like the back of your hand, you don’t know it well enough to invest in.” 3. They Develop Trust Real estate investors are usually not obligated to uphold any particular pledge of ethics. Although taking advantage of this situation would be easy, most successful real estate investors have high ethical standards. Since real estate investing involves people and requires their trust in you, your reputation will be important in any negotiations or sales prospects. Effective real estate investors know it is better to be fair than to see what they can get away with. 4. They Develop a Niche Successful investors frequently focus on a particular part of the real estate market where depth of knowledge is essential. This can take time, but once you master a particular market, you can move on to other areas using the same in-depth approach. Some niches include high-end residential, low-income multi-unit housing, or rural farm rehabs. 5. They Generate Respect Referrals generate a sizable part of a real estate investor’s business, so it is critical to earn the respect of business partners, associates, clients, renters, and anyone with whom you have a business relationship. Effective real estate investors pay attention to detail, listen and respond to complaints and concerns, and represent their business in a positive and professional manner. This builds the kind of reputation that makes others interested in working with you. 6. They Stay Up to Date As with any business, it’s imperative to stay up to date with changes in laws, regulations, terminology, and trends that form the basis of the real estate investor’s business. Investors who fall behind risk not only losing momentum in their businesses but also risk legal ramifications when laws are ignored or broken. Successful real estate investors keep up on real estate, tax, and lending laws and regulations that could directly or indirectly impact their business. 7. They Are Prudent With Risk Stock market investors are inundated with regular warnings regarding the inherent risks involved in investing and the potential for loss. Real estate investors, however, are more likely to see and hear those claiming the opposite: that it is easy to make money in real estate. Prudent real estate investors understand the risks of real estate deals and the legal implications involved and adjust their businesses to reduce those risks. “The best piece of advice is to de-risk at the beginning,” said Nicholas Liberis, partner at architecture and development firm Albo Liberis. Such a strategy means minimizing potential risks and uncertainties as much as possible before committing significant resources to a real estate project or investment. This approach involves a thorough assessment and risk mitigation at the earliest stages of the investment process. “You make money on the buy and not the sale,” Liberis said. 8. They Have an Accountant Taxes comprise a significant part of a real estate investor’s yearly expenses. Understanding current tax laws can be complicated and can take time away from the business at hand.1 Sharp real estate investors retain the services of a qualified, reputable accountant to handle the business’s books. The costs associated with hiring an accountant can be negligible compared with the savings a professional can bring to the business. “Good tax planning can be as important as the asset acquired,” Yacobi said, “while bad tax planning can sink the investment.” 9. They Seek Help Learning the real estate investing business is challenging for someone attempting to do things on their own. Effective real estate investors often attribute part of their success to others, whether it’s a mentor, lawyer, or supportive friend. Rather than risk time and money tackling a difficult problem alone, successful real estate investors know it is worth the additional costs to embrace and learn from other people’s expertise. Mortgage lending discrimination is illegal. If you think that you’ve been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps that you can take. One