Empowering Women to Thrive with Real Estate Investments
Tips on Making the First Move
By Lorraine Perez
There are countless advantages to investing in real estate. It provides a passive income, allows for diversification of funds, and gives you a sense of freedom and control that you do not get with other forms of investment.
Yet the space is dominated by men. According to Zippia’s latest findings, only 31.6% of real estate investors are women. It is not that women are not interested in real estate. Statistics show that 66% of realtors are women, based on National Association of REALTORS findings.
So, what keeps us from diving into the real estate investment market? As with everything else, real estate investing comes with a risk. But this risk is tangible. You can see it. You can visit the property. You can build on it and improve the space, which can make the fear of failure that much larger.
For some women, the thought of taking a risk on something so concrete can be hard to face. A 2023 study from the University of Bath found that women have less of a willingness to take a financial risk than men, with 53% of the gap attributed to women’s higher levels of loss aversion, while 3% is due to women’s lower levels of financial optimism.
In a male dominated space, it can also be intimidating being the only female in the room.
But, when it comes down to it, the real estate investment space provides so many opportunities for women. Investing in real estate can be worth the risk. As a woman, it can be empowering and give you a greater control over your financial future. Real estate investing is something you can do independently, part-time on the side or as a full-time business venture. You can do it on your own and find ways to succeed tapping into your own strengths.
In celebration of Women’s History Month this March, here are tips to help women interested in real estate investing make the first move.
Getting Your Start
There is no one size fits all with real estate investing. It is a vast space with many different avenues to explore. First, determine what kind of real estate you want to own. Are you interested in short-term rental properties, long-term rentals, fix and flips or wholesale?
Are you interested in doing renovations yourself or working with a contractor? Do you have an interest in interior design? Then an older property might be the right fit. You can take what’s there and transform it into whatever you envision. If not, maybe you should explore new construction, where there is less of a need to fix up a space.
Take the time to dive into each space in the real estate market and decide what best fits your needs and wants. It could start with something as simple as a Google search that leads you down a rabbit hole to explore the various niches in the real estate investment market. Having this background knowledge, tied to goals that you set for yourself, is a great starting point.
Become Comfortable with the Process
Determine what is holding you back or what scares you the most about investing. That is where you want to focus a lot of your research. If it is finances that worry you, start by talking to a lender. Building a good rapport with a lender is vital. They can show you alternative forms of financing that you might not have known about before and help you settle on the right fit for you. Tell them what your ultimate goal is and ask them how they can help you get there.
Talking about finances can be hard. Know what you’re comfortable spending and don’t be afraid to open up and ask the questions. Go to a bank and see what options they have or talk to friends and gather their insights. Maybe you have a friend who is already investing who can help you figure out the ins and outs of the space, or maybe they will partner with you to purchase your first property.
Gain Confidence Through Education
Take a deep dive into the location where you are looking to make a purchase. Understand the market. Look at the property values in that area and how they have trended over the last few years. How does the rental market work in that region? What are renters really looking for in this geographic area? Knowing the area’s past, along with the current trends, will help you in the future.
Become a sponge for knowledge. This could look like getting a real estate license to begin understanding how transactions work, getting a job with a lender to better understand that side, or it could be attending seminars and learning from those around you.
Understand general real estate practices and what you are giving and getting in a transaction. Learn the acronyms to help you better navigate conversations with those in the space. If you know what you are talking about, this will build your confidence and set you apart.
Build Connections
Find your people. Join an organization that specializes in the niche market you are planning to enter. Ask for advice and be comfortable talking to people about your goals. This could be as simple as joining a Facebook community dedicated to your focus area.
Attend seminars. Find places where you can learn and network all at the same time. Get involved. You should even listen to podcasts that will help you gather more insight.
Be Unique
When it comes to real estate investing, make it your own. Everyone’s journey is different. It is OK if you do not want to fix and flip, there are other places where you can join in. Be creative in how you look at real estate, how you are looking to purchase the property and what you are looking to do with it.
If you are a cautious person, it is OK to take your time and exercise patience to slowly enter the market. If you are in a position and want to go all in, that’s OK, too. Your story does not have to match anyone else’s in the field. Focus on what you are interested in and build from there.
