Five Steps To Real Estate Investment Success

Five Steps To Real Estate Investment Success

The world of real estate investment has a whole collection of moving parts and every one is integral to your success over the long term. While the information may seem overwhelming at first, it becomes a lot more digestible if you break it down into bite sized pieces of real estate pie. The following five steps may not be everything you need to know for success in real estate investing, but they will give you a solid foundation.

Determine Your Needs and Understand Your Finances:

What s good for the goose isn't always good for the gander. When beginning your real estate investment career, understand that it s not necessarily the right practice to follow fads or the tide. You have to understand what makes sense for your personal situation. While a multiplex might be your friend s comfort zone, you may only be ready for a one bedroom condo.

As well, have a firm understanding of the financial obligations that accompany a real estate investment purchase. Property management fees, property taxes, insurance repairs, an emergency fund to accommodate vacancy rates and six months of PITI in the bank are good things to start budgeting for. Don t forget taking the time to have a clear understanding of financing options for real estate investors is essential as well.

Work with an Experienced Real Estate Professional:

And by experienced, I mean a real estate agent/broker who consistently works with investment buyers. Why is this important? Because most agents work with owner/occupants and the needs of those buyers are different. Investors are most concerned about a property s financial impact on their portfolio first and the kind of floor coverings and countertops next.

Working with a professional experienced with investor buyers means you re partnering with someone who understands your purchase goals. And if they re used to working with investors, it s likely they ll have some recommendations for ancillary services you might eventually need, like a quality property management firm.

Know When to Walk Away:

You can t get so attached to a property for your portfolio that you re not willing to wak away from the deal. Do your due diligence, negotiate accordingly and if the numbers just don't work, hit the road. There s another condo/house/building/unit down the line.

Do the Math:

Real estate investors aren't in the game because they like to collect pretty properties. They re in it to make money. Make sure that you do the math on any property you re looking to acquire. Do rent rates support the purchase price? Will it cash flow? How high are the property taxes and HOAs? Would a property a half mile away make more sense financially? Can you afford the negative cash flow if it goes vacant unexpectedly? All things to consider for the savvy real estate investor.

Hire a Property Manager:

Most investors don't begin investing in real estate in order to become a landlord, so why should you? A quality property management firm can handle everything your property needs: marketing for new tenants, tenant screening, cleaning, repairs, monthly rent processing, utility payments. For the 5 10 most firms charge, it s worth budgeting for in order for you to enjoy being an investor and living your life instead of worrying what your tenants are doing to your property.

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Real estate investment is one of the best ways to make money. And what better place to stat than Colorado Springs. The Colorado Springs real estate has been a popular option for many who wish to get better returns on their real estate investment. There are some fantastic homes for sale in Colorado Springs. One must consider hiring the services of a reputed Colorado Springs REALTOR to help you find the perfect home that will suit you and your family. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.