Women Investing in Real Estate

 

Tips and strategies for women who are beginners in real estate investing

 

There are women all over the country who would like to become real estate investors but many don't know how to start. Some lack knowledge; some, aware that they lack the necessary knowledge, in turn lack confidence. Where should women who want to get started investing in real estate begin?

The internet is a good place for them to turn.

Women who want to begin investing in real estate can learn some of the basics of investing in real estate by reading educational materials online, and they can develop a familiarity with the topic by reading about current events and trends in the real estate market.

Lack of knowledge is not the only thing that keeps some women from becoming real estate investors; fear is also a contributing factor. Many are afraid of losing money, they're afraid of not making the right decisions...and credit issues are also involved. In addition they don't know how to get started.

Real Estate Investment Clubs

Providing women with industry contacts and education, real estate investment clubs are a good place to start. I recommend that women interested in investing in real estate do a simple internet search for "real estate investing" to find local investment groups to start attending. EOTM just recently launched their new Investment Club geared towards providing newbie investors with resources and key skill sets with success as the end result.

Finding other women to network with can be very beneficial.

In addition to investment clubs specifically pertaining to real estate, I would strongly recommend looking for support from a general business perspective at NAPW, the National Association of Professional Women. They'll get a lot of support from a business owner's perspective and from women in their own area.

Networking

No matter what type of real estate or general investment clubs women seeking to become real estate investors choose to join, such groups can provide them with crucial opportunities for networking, education and support.

The greatest key is knowledge, and women new to real estate investing can benefit from being around other people who do invest to learn the process from those people.

Learning from and working with other women who are experienced real estate investors can also be a good way to gain confidence.  Beginning investors should work with someone with experience in real estate investing—get your feet wet a little bit before you go out on your own.

At real estate investment clubs, there are real estate agents and other investors there for them to network with, there are lenders, there are contractors.

Everybody who's related to the real estate industry can be found right there...so they can form their own network there to get them ready for real estate investing. After joining a group, women should put a business plan, or a marketing plan, or a road map together—their checklist of things that they need to do in order to become successful.

Putting together a team of experts to work with when investing is smart. You have your financial team: your accountant, your attorney, a property manager if you're buying to hold property for the long term...people that can assist you and be part of your team so that when you go out to identify and find a deal, nothing is going to stand in the way if the deal makes sense. You've got your people, your money—all your ducks in a row.

If a woman does that, she's going to be very successful in real estate.

Strategies for Women

Considering the credit crunch underway across the country, combined with the potential recession, many women who are interested in becoming real estate investors hesitate because they are nervous about money. More precisely, they are worried about not having enough money to be able to invest in real estate.

I think some women feel that they need to have a lot of capital up front, or their credit may be bad and they don't think they can get started because of that, either.

Let's talk Money

Realistically, investors will need some money up front. It's going to take a little money to get started.  One year ago an investor could buy a property with no money down and get it financed for 100 percent. With all the foreclosures going on across the country, that kind of put a thorn in that, and so now [real estate investors need] to come up with some money.  Whether that's 10 percent or 20 percent, a lot of them just don't have it.

Fortunately, for women just starting out, there's a lot of different creative strategies, like lease options, that they could do to acquire a property.

Buying pre-foreclosures or foreclosures is another strategy that may suit women in particular well for a variety of reasons. While foreclosure properties tend to be more affordable, they typically must be purchased with cash up front. Pre-foreclosures would be a better option for people without a lot of cash on hand.

Another reason is that, because in many cases women are more nurturing than men, a woman may be able to talk with homeowners who are in pre-foreclosure and get them to let her purchase a house below market price compared to a man approaching them to do that.

The foreclosure market is a place in which many women investing in real estate could find their niche. I think women will play a major role in their commitment to revitalize areas hardest hit by foreclosures. Members of my group, have made a commitment to buying and rehabbing houses in these areas and then sharing equity with properties that they sell. And by doing this, homes become more affordable....We take a little less profit for it, but something has got to stimulate home sales again, particularly in these areas.

Such a strategy allows the investors to profit not just from the revitalization of a particular property, but from the revitalization of a particular area. Such dedication to a community can improve an area's economic outlook. This type of investment is well suited to women because a great advantage that women hold over men is compassion, and empathy.

Outlook

Women are relationship people, we're good at establishing a relationship, we're good at earning trust, and so people want to do business with us. It becomes a lot easier for us to develop a good reputation for delivering a quality product. This is a tremendous advantage for women, particularly when it comes to rehabbing property.

I would also recommend that women who lack experience with do-it-yourself home projects attend classes, such as those offered by hardware and home improvement stores, to learn the basics. Then, if someday they are looking at investing in a property that may require some work, they can make the right decisions about the deal. Do-it-yourself skills could be particularly useful for women who want to rehab properties.

Negotiating can be another important skill for women to concentrate on learning. Women should also learn better negotiation skills and take control.

I don’t think that women are at any inherent disadvantage when it comes to investing in real estate. I think the major disadvantage is probably internal. Women only feel that they lack the power and authority. They feel like they can't do it because investing is a male-dominated field.

Women investing in real estate are not less likely to be successful solely because they are women. It’s not that it's difficult; it's that women tend not to have the confidence, in my opinion. Somebody who's persistent and somebody who believes in themselves, whether male or female, will do just fine.

If you are seriously looking to tap into the Real Estate Investment arena don’t hesitate in contacting Carla Barnes of EOTM Real Estate Group today. 678-548-9466. Also feel free to visit our new Real Estate Investment Club.

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