If you’re thinking about investing in real estate in order to build wealth, you’re not alone. Here are some tips that will get you started off on the right foot.
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What does it take to buy a home? If you are someone who is looking to buy a new home or helping someone else through the process, there are some things that you should know. Today I have a quick list of things that you need to know:
Before I was ever a real estate agent, I was buying and selling investment properties. This is something I’ve always enjoyed and something you should think about. Whether you’re thinking about buying your first property or your fifth, here are a few helpful tips for success with investment properties:
1. Always make sure your finances are in order. We are finding fantastic properties, but when one buyer’s finances fall through there are always three or four back-up offers from eager buyers waiting to pounce. The seller won’t hesitate to move to the next in line if you’re not prepared.
2. Be proactive about having everyone and everything ready to go. If we’re dealing with a development, that means we need engineers, geotech, soil testing, surveyors, and architects. We want to make sure that we have the proper forms, rent rates, and every other detail ready to go. We have all of these resources ready for you so that you can find success.
3. Find the project. The market is great and I think it will go up for at least the next 18 months. There’s going to be an affordability issue at some point, and then you’ll see a leveling off.
When it comes to what investors should be looking for in a property, there are three must-haves:
The property must have equity already.
There is an opportunity to maximize its best use.
There is a potential for cash flow.
If you don’t have these three things, you’re facing an uphill battle. For example, if you don’t have a property that’s cash-flow positive, that’s when people go bankrupt and lose everything. Back during the mortgage crisis, my rentals went down significantly in value, but the rents remained the same. I was able to use that money to sustain my business during those tough times.
There are so many opportunities involved with investing in real estate. If you have any questions or you want to learn more, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.