5 Easy Tips for Becoming a Savvy Orange County Real Estate Investor

While it’s true that some people are just born with the knack for business, every savvy Orange County real estate investor started somewhere. One day they decided to take a chance in the real estate investment game and through lots of education – both formal and informal – they got where they are today.

Learning how to make smart investment choices is what makes most real estate investors successful. Whether you learn about real estate investing through a Nouveau Riche University course or from a mentor in the business, understanding when and how to make investments is what will set you apart for others in the field. Here are a few tips that can help you become a savvier investor and build a better Orange County real estate investment portfolio.

1. Don’t fall in love with a property, fall in love with the numbers.
Buying a home or property because it’s cute or has a great chandelier or is near your favorite restaurant is the worst thing you can do. Things you love are things other people may hate, so chances are you will not make any money from these types of subjective features. When you invest in a piece of property, do it because the numbers are in your favor. This means that the property, even after renovations, will net you a good profit, not just be a pretty picture in your portfolio.

2. Buy low, sell high.
Even if you’re just beginning your Orange County real estate investment career, you should already know that the best way to make money is by buying low and selling high. A great way to do this is to check out foreclosures, REO homes and homes in need of repair. Often times these homes are priced far below market value and you will easily recoup your money and make a great profit by renovating or remodeling the home to suit the area.

3. Focus on your real estate portfolio, not on flipping.
A bigger portfolio doesn’t mean a better one. One of the biggest rookie mistakes an Orange County real estate investor can make is going for quantity over quality. Making smart investments that finish on-time and under-budget will yield you more profits then choosing many properties that yield small margins. Until you know the business better and can handle multiple projects at once, it’s in your best interest to carefully take on a single project at one time instead of spreading yourself too thin with multiple properties.

4. Know your limitations.
While it’s true that you can do anything you put your mind to, it may take you longer and cost far more money in the long run to do a job yourself then to hire an experienced professional to do it. No matter if it’s tile work, accounting paperwork or property listing, it is often times better to turn to an expert then to take on the task yourself. While you may spend a bit of money to have professionally installed flooring, a knowledgeable accountant to give you investment and tax advice, or a top-notch real estate agent to list your properties for rent or sale, in the end, you are creating a team of people you can count on and trust – an that will bring you more profits down the road then laying tile yourself ever could.

5. Utilize equity and buy properties with the bank’s money.
One of the most common misconceptions about becoming an Orange County real estate investor is that you have to be rich in order to get started. The truth is, most savvy investors started out with little or no capital and leveraged their own home equity to buy their first property. And once you have that first property under your belt you can grow your capital and build your portfolio. A great way to find out more about leveraging your home equity to begin your Orange County real estate investing career is to read Dolf de Roos book “Real Estate Riches: How to Get Rich off your Bankers Money”.

Tax Strategies for the Orange County Real Estate Investor

This time of year is synonymous with taxes. If you’re not already finished with yours, chances are your elbow deep in tax forms and receipts. And of course if you’re an Orange County real estate investor, you probably need a little extra help to sort through all your tax papers, deductions, credits and expenses.

Most seasoned Orange County real estate investors have tax professionals that can help them with their taxes each year, but when you’re just learning the business or building your portfolio, you will most likely be handling taxes on your own. And even if you’re not, it’s important to understand different tax benefits when it comes to Orange County real estate investing.

A great way to learn about all the various tax benefits and liabilities is through the Tax Strategies course at Nouveau Riche University. This class will help the Orange County real estate investor learn practical applications of owning real estate as well as the tax implications of operating under various business structures. This course also teaches bookkeeping basics and helps students understand how to maximize deductions and minimize taxes.

You can find out more about Nouveau Riche University’s Tax Strategies course or its other Orange County real estate investment classes by checking out the school online. Or contact the University today at 949-433-7187 for more information.