Historically, women have experienced great discrimination when it comes to homeownership and real estate investing. However, both the real estate industry and society’s treatment of women have come a long way over the last couple of decades. Currently, more and more women are becoming real estate investors and owning a profitable real estate portfolio. In fact, more women are committing to mortgages before marriage.
Real estate is an attractive business venture for women because it’s a low-cost way for women to start a lucrative business that offers flexibility, like working from home, making your own schedule, etc. Despite the foregoing, women are grossly underrepresented in the real estate investment community.
Reasons Women are Under-Represented as Real Estate Investors
Many women across the U.S. would love to start a career in real estate investing. However, according to BiggerPockets.com, there are four primary reasons why most women don’t.
1. Lack of Support. Many women don’t know how to start their journey. This lack of information, support, and education make it challenging for most women to get started.
2. Lack of Confidence. Without proper support and adequate education about real estate investing, this can quickly manifest into a lack of confidence and, ultimately, a fear of losing money in the real estate industry.
3. Social Biases. We cannot overlook the stigma associated with women owning real estate. This is especially true when a woman starts her real estate investing career before getting married and having children.
4. Lack of Time. The reality is that in 2021, women are doing more and more. Specifically, women are working full-time jobs and raising families alone. As such, time limitations may hold some women back from a real estate investing career, even if they have a strong desire to do so.
Why More Women Should Be Investing in Real Estate
Because of the rise in single, independent women, real estate investing can be used to create financial stability for women and help them make money. Women are typically quite good at building relationships and finding solutions to problems. Additionally, for the most part, women naturally can gain trust and network with other professionals and contracts. This knowledge and skillset can easily be transferred to real estate investing and managing rental properties.
Additionally, women should invest in real estate for the following reasons:
• Build wealth for your family • Take Control of Your Financial Life • Save for retirement• Create an additional stream of income• Create residual cash flow • Generate Passive Income
How Women Can Get Started in Real Estate Investing
1. Education. Learning the ends and out of the real estate investment industry is the first step to starting a lucrative real estate investing career. In general, get your hands on as much information as possible. Peruse the internet, read articles and blogs by leaders and authorities in the real estate industry, join a community network with real estate investors, and lastly, listen to a real estate podcasts on your way to work. Overall, immerse yourself in learning everything you can about the real estate industry, including investment opportunities, property management, and the benefits of real estate as an investment vehicle. This will make you a well-rounded real estate investor.
2. Start Saving For Your First Deal. Here’s a little secret, you don’t need a million dollars to buy a property or get started in real estate, especially when you start small. As such, as soon as you decide to pursue real estate investing, start putting money to the side immediately. The standard downpayment on an investment property is 20%. If you start with a smaller property, like under $100,000, you’re looking at putting just $20,000 or less towards your first investment property. If you have concerns that you can’t save the money, it’s okay to save over the course of a year or two to fund your first investment.
Additionally, there are other ways to get started in real estate investing. You can also invest passively invest in real estate through real estate crowdfunding projects, mortgage notes, Real Estate Investment Trusts (REITs), or real estate syndications. Once you learn about the industry, you will discover the various options to start your real estate investing career and can diversify your portfolio as you deem fit.
3. Find a Mentor or Real Estate Investment Coach. A mentor or a coach can work with you to help ease the learning curve. They can also help identify your strengths and weakness and help you figure out how to assemble a strong team and find a lender to help finance your properties, if applicable. As such, it’s crucial that you find a mentor early on in your journey to avoid wasting time.
4. Choose a Market and Investing Style. Once you have a thorough understanding of the real estate market in general, it’s important to find a niche, market, or asset class that you want to focus on. Also, develop your own investing style or investment strategy based on your personal goals, risk tolerance, and anticipated need for cash in the future. For example, will you focus on house flipping opportunities or investment opportunities that include commercial real estate, single-family homes, multifamily rental properties?
Final Thoughts: Take Action. Don’t Let Fear Stop You.
By following all or some of the tips above, you increase your chances of being successful as a first-time female investor. Just remember to be conservative until you acquire all the experience and knowledge you need. Once you have gained some experience in the industry, it’s okay to occasionally take bolder and large risks to invest and grow your portfolio.
Overall, stop putting it off and just get started TODAY. Lastly, remember that successful real estate investing is a marathon and not a race.