Everyone has a story.There are good people out there who have fallen on bad times. Some kind of mis-fortune, loss of job, loss of health; some beyond their control, some well within their
First Time Real Estate Investment What To Know When First Starting Out
Dated: November 19 2014
Investing is really a numbers game. Emotions no longer play a part; it comes down to the cold hard facts. How much the home and rehab costs must be compared to what the home will sell or rent for. Know what your margins are and learn to look at real estate differently than before.
Decide what kind of investor do you want to be. Rehabbing, buy-and-hold, flipping and wholesaling are all different ways in which to invest. Consider how much time you have and what you can realistically expect from your budget. Value comes with time, so the longer you hold onto your property, the more value you can extract from it.
Don’t go overboard. It is easy to get too excited, over invest in the beginning, and run into trouble thinking you can recoup quickly. Start out small and don’t make investments that require you to dip into your savings. Real estate investing should be a supplement to your existing financial goals and plans, not a replacement. When you do start having great successes, that is when you can reevaluate your plan.
Learn from those already successful. Look into local investor groups using sites like Meetup.com or your local chamber of commerce. There are also online opinion forums for investors. Talking to those who are actively investing, and doing well at it, are the best to insight. You can learn from their mistakes before committing them yourselves.
Build your team. As an investor you will need a realtor, lender, accountant, and lawyer. Do research, reach out for referrals, and make your selections by choosing those you trust. It’s important to find individuals who are experienced in real estate investing. Depending on your situation, you may want to set up an LLC to protect assets and minimize tax liabilities.
Select properties with care. Find something that is low maintenance and will appeal to the general population. Keep personal tastes out of it. Avoid odd layouts and features such as swimming pools or large yards. Simple is best.