Is it good to invest in Real Estate? Yes! As a matter of fact, wealth is made by investing in Real Estate. Many of the richest and wealthiest people around the world have much real estate and have businesses invested in real estate. If you are thinking about how to make more money, thinking about retirement, or even what legacy you will leave your children and your children’s children, then it is surely real estate investing. What is stopping you from taking the first step? Possibly you are new at investing, or maybe you have low or no down payment, or maybe you tried it and it didn’t turn out as you would like. Whatever the situation may be here is a few Tips that should help you get started.
Check your finances
Simply calculate your income and expense. Try to figure out how much you can afford to spare every month. Add up how much money you have to invest. Whether it’s savings or access to loans. What about if your savings are low? Look at other avenues such as equity line of credit, Seller financing, taking over someone else’s mortgage payment who might be in distress, bringing in an investment partner with cash, using a private lender, or peer to peer lending. Those are a few examples you could look into to get you started.
Once you determine how you are going to access your down payment, get a formal indication from a lender ( a bank or a mortgage broker) that they will lend you a certain amount of money. Having pre-approval will make your negotiations at the time of purchase a lot more in your favor.
Set your Goals and Plans
Do your research to determine what you are trying to achieve. What does success look like to you? Which area are you going to invest in. Are you going to rent the property out or move into it? If you are renting it out, what will the rent be? Who is going to manage it? Have short terms and long terms goals. Write your goals down with an action plan and a deadline. This is the time to start considering finding a broker to work with you and help you with some of this information.
Understand your attitude to risk
What sort of risk do you tolerate? Your attitude to risk should inform your strategy. Are you going after a property that needs repairs? A fixer upper? Do you have the skills to do some of the work yourself or you need a contractor? How much it will cost? How long it will take? Do you need to go after something done up already? Try to analyze your risk tolerance.
Be informed and stay focused
Use all the tools available to make you more informed. Network with the right people. Talk to your real estate agent. Find out if there are any government programs that can assist you. Get informed about how you will handle repairs if needed. Being informed will help you to stay away from an emotional let’s get rich quick decision. Once you educate yourself, stay focused on your goals. Property investments should always be driven by the numbers not the emotions.
Those are few tips that can get you started. Now it is time to take action. Contact one of our MRES Team to help you with some options available to you or to answer any of your questions. please contact the MRES Team at (650) 745-8186 or email us firstname.lastname@example.org