Looking to move into the world of real estate investment, but are not certain where to begin? Let me offer a few hints that may be just what you need to move you off the mark and get you to purchase your first real estate investment.
1. Have a plan - It is not enough to want to purchase investments, but you need to know the "why" you are doing it and "what" is your short term and long-term goal. This will help guide your decisions as to which properties to purchase, hold, or flip. Also, it is important to determine what type of properties you want - residential, commercial, or vacant land - in your portfolio.
2. Funding source - Will the source of your funding be private or institutional? Will you collaborate with private backers or create a family fund source? How much will you be investing in the properties.
3. The Four "Rights"- Consider these four "Rights" when you activate your investment strategy.
A. Right property - Does the property fit your profile of ideal properties for investment.
B. Right location - Is the property near needed conveniences to make the property attractive to renters and investors.
C. Right time - Real estate ebbs and flows and as an investor you need to be fully aware of where you are in the cycle.
D. Right Price - What will be your ROI (Return on Investment) on the property when you rent it or sell it? Will you and your financial backers realize a healthy return from the investment property.
4. Work with a Realtor(s) - Team up with a real estate agent in the area where you want to invest and let him or her know from the start your investment plan. They can help identify properties in their area which meet your criteria and give you multiple investment opportunities over the course of your relationship.
There are numerous books, and You Tube videos on real estate investing currently available. The key thought in all these sources is you need to make your first investment. Real estate investing is a learning process, and you will find the more times you make an investment; the more you will learn about real estate investing.
No comments:
Post a Comment