If you’re looking to get started investing in real estate and you don’t know just how to begin. Here are a few helpful tips that we share with our rookie investor clients.
Know Your Numbers
The most important step before buying any real estate is knowing your financials. This means getting a pre-approval from your bank. This pre-approval will tell you what you can afford based on the current interest rate. Since interest rates change quickly, a pre-approval will allow you to hold said interest rate _____.
Then you can search for something that fits your budget. It is important to also factor in how much you have to put down and what your budget will be for repairs and renovations.
You don’t want to be running around looking at X if you can only afford Y.
Determine Your Involvement
One thing that I know for sure is that investors are as individual as their fingerprints. Some like to be hands-on and some like to be hands-off. Some like this and some like that. Simply put, we have to know what you want to do. So it’s about creating a plan and figuring out how much you want to be involved in the day-to-day of managing your rental properties.
Do you want just one property to help you with retirement plans?
Do you want to build a portfolio of properties?
Do you want to fix and flip it?
Do you want to be a passive investor?
There are many different ways to invest in real estate. All of the strategies mentioned above, work and will get your money, earning you money. The question is, which one is right for you?
Just Do It
As a new investor, the hardest thing to do is to start. Putting pen to paper and buying a property is a commitment. Whether it’s a retail property, a rental, or a flip, you want to make a decision with confidence. Doing your due diligence at the beginning will put you in a position to act when the right opportunity comes your way. Whatever investment strategy that you create, follow it. Don’t overthink things, don’t also underthink things, just start. As I say to many people, start small and build for tomorrow, but simply just start. A mentor once told me, “The best time to plant a tree is twenty years ago, and the next best time is today.” I’m telling you the same thing is true for investing in real estate. “Don’t wait to buy real estate, buy real estate and wait.”
