Oh, no you don't want to be a real estate investor! It's such a total nightmare. You can never find good tenants, they always damage the property, we're in a housing crisis, there's no money to be made. Ok, you can keep thinking that - it's ok because in the meantime there are others that see past all that and are buying the things you're not because of your fear and listening to the negativity of others. It's ok, while you keep reading the headlines other people are taking advantage of creating their wealth, building investment portfolios and having the opportunities come available to them every single day.
People think real estate investing is a nightmare and hear negative things about it all the time. Question, do you always listen to people and don't research things yourself? Real estate investings has been going on since the beginning of time and can definitely see how it's affected those people who have taken action and created wealth. IT'S NOT AS INTIMIDATING AS YOU THINK.
As our spending power decreases the people that are able to invest in properties are the ones that will see the results later on (if they have not seen the benefits already). Being well informed by research, asking questions, learning from other successful people, building a team of people that know what they're doing are several ways to be self-informed and gain confidence. One of the reasons why people engage in property investment is its relative stability. Generally property prices will increase (or appreciate) as time goes by. That being said, this is what the appeal of real estate investing in properties is.
If you're new "to the game" and have been thinking about it, outside of finding a "Geographic Specialist" (don't be influenced by the price and/or how low a property is); here are a few tips to help get you started and have a long term success as being a real estate investor - not a speculator:
Step 1: LOCATION
The location of the Property – This is by far the most thought about factor when deciding to invest in properties and one of the most important aspects of property investment. Why? It's one of the primary determining factors of how you are able to price it; (exit strategy/resale) and/or rent. When people are thinking about renting or buying property the first thing that will determine their choices is the location of the property. So basically if you are able to purchase property that has the following: close proximity to transit, shopping malls etc then you will most likely be able to attract more buyers and renters.
Step 2: HARD WORK – DO YOUR NUMBERS BEFORE MAKING AN OFFER- calculate rents and make sure the rents will justify your costs/expenses of owning the property. The worst thing you can do is overpay for a property and not calculate correctly the income/expense ratio and essentially, not getting enough rent to covers expenses and paying for the tenant to live there. That is not effective investing.
Step 3: BE PATIENT - you've calculated your vacancy rate so ensured you have that buffer. Know that in real estate investing and tenant placement nothing happens overnight. Even the best investment properties can sometimes take time to get people that are willing to rent. Regardless in whatever you do after you have done all that you can you need only wait till you get the best price for your property.
There are so many more tips that can be shared but mostly, look past the naysayers and ask yourself - are they in 9-5 jobs and are they wealthy? Stop only dreaming and continuing to be in the same mundane, daily routine. Real estate investing is not as intimidating as you think but it is truly important to have "experts" in their field that know what they're doing. It will be your business.
INVEST. BUILD WEALTH. RETIRE.
You can't do anything about the length of your life, but you can do something about its width and depth.
- Shira Tehrani
Action may not always bring happiness, but there is no happiness without action.
- Benjamin Disraeli
Life is a great big canvas, and you should throw all the paint you can on it.
- Danny Kaye
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