Ready to invest?
Don’t be fooled by the television shows, investing in residential real estate isn’t a get rich quick regime and it won’t come easy. How do you know when you’re ready to start investing?
- Understanding the process
The goal of investing in real estate is to buy a property at a lower than average price, perform value add renovations, and either sell it for a quick profit, or rent it out and receive a steady stream of revenue. It’s a good idea to team up with an experienced investor who can walk you through prior examples of deals they have done.
Before you start investing, it is important to do a little background research. Assess what neighborhood/city/county you want to invest in. Learn about what has been selling in those neighborhoods. Find out what is available.
Analyze how much money you are willing to put into investing. Assess costs related to purchase price and renovation budget. Decide on an exit strategy. Are you planning on flipping the home and selling it for a quick buck or are you able to leave money in the investment and rent it out.
Investing in real estate requires a significant amount of time to manage and oversee the process of renovating your investment property. Before deciding to invest asses your time schedule and calculate the cost of your time to manage this project.
Not quite ready?
Maybe you don’t have the time or the money right now but it isn’t too early to prepare. Wholesaling, the process of obtaining a contract for a property and selling it for an assignment fee, is a great way to earn capital while learning the ins and outs of real estate investing.