Introduction
If you’re like me, you were probably born with a natural inclination towards all things real estate. A love of property and investing is something that I’ve always had, and it’s a passion that I’ve been lucky enough to turn into my career. However, not everyone has the same affinity for houses and money as I do—but there are plenty of people out there who would benefit from adding real estate investing to their portfolios. So if you’re looking for some tips on how to get started as an investor in today’s market, here are some basic steps we recommend taking in order to launch your investment property portfolio.
You don’t want to be one of them.
You don’t want to be one of them.
What do I mean by “them”? The ones who make all the mistakes, then ask for help. You know, the ones who say they are new investors but have been in the game for years and still haven’t gotten anywhere. Or maybe you’ve even been one of them yourself at some point in your investing career and now you’re looking for ways out of that hole that seems like it will never end! Well look no further because today we are going to help get your investment property portfolio on the way with these tips & tricks for new investors:
Step 1: Know what you’re getting into
Before you make the leap, it’s important to understand what you’re getting into. Real estate investing is a long-term commitment. You need to know what you’re doing and be prepared for the risks involved in investing in property, as well as being prepared for the ups and downs of markets.
Step 2: Get a pre-approval from a lender
The next step is getting pre-approved for a mortgage. A lender will want to know that you can afford the property before they approve it, so they’ll give you a letter stating that they’ve checked your finances and believe that they’re good enough to go ahead with this purchase.
This is also an opportunity for new investors to get their personal finances in order so that when they do buy their first investment property, everything is set up correctly from the start.
Step 3: Figure out your budget
Step 3: Figure out your budget
Your budget is the most important thing you need to figure out before starting on your investment property journey. It’s also one of the most difficult parts of creating a business plan, because it involves making some hard decisions about what you can afford and what luxuries you’ll have to forgo in order to make it work.
If possible, make sure that any numbers used in this step are based on actual figures from past years rather than estimates or guesses. The best way to do this is by saving all receipts for expenses related specifically towards rental properties (like repairs or maintenance) so that they can be tracked over time as part of an overall cost analysis later on down the road when things start getting serious!
Step 4: Explore your options for financing your investment property
Once you’ve got your head around the idea of investing in property, now is the time to focus and get serious about what you are doing.
You need to have access to the deposit, refurb costs and closing fees before making any offers on investment properties. Closing costs include legal costs, Stamp Duty and any other costs due at completion.
Check out our articles on using Other People’s Money (OPM) or raising funds from family members if that sounds like something that could help you achieve your goals faster!
Step 5: Research the best investment property locations in your area
It’s time to get down to business. You’ve got a few options here, but the first step is always the same: research!
First and foremost, you should look for areas that have a high demand for rental properties. If there isn’t much demand for rentals in your area then you’re going to have trouble finding tenants and keeping them happy when they move in.
Next up is looking at locations with high levels of investment activity–this includes both residential and commercial real estate investors who are buying up properties left and right (and sometimes right out from under each other). In addition to this, try searching out areas where people tend to stay put rather than moving around very often–it’ll make it easier on yourself later when trying sell or rent out your investment property!
Finally, look closely at how close these places are located towards amenities like grocery stores or schools; these things matter when deciding where exactly within an area should go next!
Step 6: Choose the right sourcing agent to find you deals
A sourcing agent will find you deals at lightning speed. As you’re looking for an agent, keep in mind that finding the right person can make all the difference.
- An experienced agent will know what kinds of properties you should be looking at in order to achieve your goals and help you avoid wasting time on properties that don’t fit your criteria.
- A motivated agent is one who has good relationships with property owners, estate agents and other investors in their area–and knows how to use them to their advantage when it comes time for negotiating with sellers and getting deals agreed.
- An honest agent won’t waste your time showing you properties that aren’t worth buying (or selling). They will give honest feedback about whether or not a particular deal is worth pursuing based on their knowledge of market conditions, asking price and other factors affecting its value as an investment property.
- Reputation matters: choose someone who has built up credibility over many years by providing great service; word-of-mouth referrals from past clients are always helpful here!
Investing in real estate is an excellent way to boost your savings and create wealth.
Real estate investing is a great way to boost your savings and create wealth. It’s an excellent investment because it’s tangible, can be easily sold, and you can get a lot of bang for your buck when you buy an investment property well.
You can use the equity in your home to invest in real estate. You may also be able to borrow from friends or family members who trust that their money will be safe with you as long as they know what kind of property you’re buying and how much risk it carries.
Conclusion
We hope that these tips have helped you decide if investing in real estate is right for you. If so, then we encourage you to get started with your research and planning as soon as possible. There are many factors that go into finding the perfect investment property, but don’t let that deter you from taking action! With these tips in mind, we think anyone can find success when it comes time for them to buy their first piece of real estate or build up an entire portfolio full of properties.
