Getting your hands on your first rental property can be a challenge. It doesn’t matter if it’s a city as vibrant as Perth or one that’s supposedly dying like Detroit. Some problems persist when you are trying to break into the investment property arena.
Fortunately, it isn’t impossible. Yes, the process is very capital-intensive if you don’t already have properties, but it isn’t impossible. Here is a reliable process on how to break into the game. All you need to do is adapt to the specific details as they arise.
First, you want to know what you’re getting into. Learn about real estate.
Look up terms on sites like Investopedia. Read books on the market in general. Read articles on what it’s like where you’re seeking to invest. Admit you know nothing and ask experts and professionals in the field, from brokers to bankers to other investors.
Most of all, be sure to listen. Don’t regurgitate information you picked up in a book. Instead, talk to people and ask the winners how they made their money in real estate. Practical know-how will often serve you better than academic understanding, but you still need to know the industry terms.
Don’t look at percentages.
Instead, consider whether or not you achieved an objective. This is true whether you reject 99% of every property you check out or if you keep failing at getting deals you want. Results, not percentages, are essential.
Don’t spread yourself thin. Focus on one strategy and stick to it.
In most investments, you want to spread your money around. You don’t want to concentrate only on bottled water only for the market to suddenly tank. When it comes to investment properties, this isn’t the best way to handle things.
If you are going around renting this apartment out, waiting for this house to appreciate in price, and flipping a few units downtown, you are spreading yourself thing. It may feel like you’re set to make more money, but you’re not. You are only giving yourself a set of goals you cannot achieve.
Find an investor.
One easy way to do this is to talk about your goals. There is nothing wrong with mentioning what you are doing and what you are trying to achieve when people ask. Sooner or later, word of your real estate goals will make their way to someone who can invest.
Before you find someone willing to help financially, you should have answers to his questions. This will involve more terminology. It also includes answering his likely first question: how much money will I make if I help you?
You know the game. You have the money. You have a goal. Now you just need to buy the property and lease it out.
There will be paperwork involved in this. You and your investor might need to file some to be considered a business entity. You’re going to need contractors to renovate the place. There will be paperwork involved when someone leases the property.
Finally, be persistent.
Investment properties do not make money dramatically. It takes time, and you need to be persistent if you want to make the most of it.
Do you require more advice? Go home, and you’ll find more.