If you’ve been considering the benefits of real estate investing, but have been a little overwhelmed and unsure of where to start, we’re here to give you a guide on how you should begin.
Step one: Dive into the resources at your disposal to learn about real estate investing.
You’re not the first one to be curious about where to start, and many people have picked up some great tips and tricks that they’re happy to pass along to you. We’ve found books, blogs, podcasts, and forums with general information to more specific insights depending on what area of real estate investing interested them. Gathering as much information as you can is a great way to start and can help you avoid common and costly mistakes.
Step two: Make a road map.
Just like every long journey, you should mark where you’re starting from, where you want to end up, and a rough outline of how you plan to get there. Take into account your current assets, monthly income, and expenses, and set realistic expectations for yourself. It may even be helpful to have an investor look over your plan and check that it’s doable with your funds and outline.
Step three: Find the right financing option.
Most people think this is where you would begin searching for properties, but that’s a little presumptuous. One of the most important steps of the process is figuring out how you’re going to finance your purchases. There are a variety of options, and anyone at your local bank or at a mortgage lender would be happy to walk you through what would work best for you.
Step four: Create a criteria list for investing.
Now that you’ve made a plan for your investment, you need to create a list of what kinds of investments you’re looking for. Be sure to include the location, price, property type, and condition of the property you’re looking at. This helps narrow your scope and determine what homes you should be focusing on. Stick to your list and don’t buy something that isn’t reasonable for your road map.
Step five: Signed, sealed, delivered — it’s yours!
Now is the time to call in the experts and let the real estate agents who understand investments help you find the kinds of properties that meet your wants and needs. They will negotiate with the sellers to get you the very best deal. Once that’s been done, then it’s time to call an inspector to the residence to look at what unforeseen costs and repairs need to be taken care of. After everything has been dealt with, it’s time to close.
Step six: Management is everything.
Now that you’ve closed on your property and have officially become a real estate investor, it’s important to take the proper steps to make sure your business thrives. Great management is key, so dedicate time to learn how to be a good landlord or look into professional property management companies that can get the job done.
Whenever you’re ready to find the properties that meet your criteria list and will make a sound investment for you, we’re here to help! Reach out anytime to make your real estate investment venture a reality.