Beginning your real estate portfolio can seem like a bit tough. Once you learn a few tricks, investing in real estate could become one of the smartest decisions you ever make.
We have put together 5 tips to help the first time real estate investor make their first investment!
Tip #1: Do your own research, and keep researching!
Do your own research. Don’t rely on agents or real estate professionals to give you everything you need to know. Gain as much information as possible, and ask other investors and realtors questions. Throughout your entire investment journey, you need to keep researching. Areas and trends and laws change frequently. Learn the areas, trends, property specifics and any other info you can get to.
Educate yourself continuously and surround yourself with like-minded individuals who share the same goal. Find people who are doing the same things and share experiences and stories. Find a mentor and learn as much as you can from people who have been there before. Share stories with other professionals in the business.
Tip #2: Set up and structure yourself properly
Here’s another tip if you are a first time investor in the Fort Wayne area: Enlist assistance and a few seasoned professionals to make sure you have structured your transaction properly. Build a quality team of people you can count on; including contractors, lawyers, bankers, and a good real estate attorney that you feel comfortable working closely with. Forming these relationships early will help you in the long run. Having the right people on your team will more adequately prepare you to deal with new and challenging situations.
Tip #3: Know your options
There are many choices when it comes to starting your real estate portfolio.Multi family rentals and homes and single family rentals are not the only options you have. You may want to consider leasing a commercial property to local businesses, renting land to people to use recreationally, or even think about investing in mobile homes. Many people make tons of money by pursuing investments that are off the beaten path. You can also look into REIT’s, or other investment groups. Working with experienced investors is a great way to learn the ropes, but you will have to pull your weight.
Tip #4: Make sure it’s right for you
Before you dive in, make sure that what you’re investing in really makes sense for you. Let’s say you’ve heard about all the money to be found in foreclosures. Before you purchase, ask yourself, do you really understand what goes into rehabbing a home? Can you fix drywall, replace windows and copper pipes? Will you need to hire others to do the work because of time or lack of skill? If you have never done it before, you might want to reconsider making a fixer-upper your first investment.
If you are investing in a rental property, will you be doing the work, or will you be hiring a property manager? You will need to hammer out all of these details before you can be sure you are making a good investment.
Tip #5: Calculate your margins
If you are a first time real estate investor in Fort Wayne area? Our staff can help you find the property you’ve been looking for! Send us a message or give our office a call today! (260) 220-8715