Nobody knew about the personal struggle and the sleep-depriving process that you had to go through before arriving with the final decision to invest in real estate. You only know that it’s the best decision that you’ve made! All the pros and cons you weighed, all the risks you were willing to take finally led you to this moment.
Now that you’re done with all the difficulty of settling, brace yourself now for what’s about to happen next. But don’t worry; you won’t go down that path without a light. Here are some helpful steps that you need to follow after deciding to buy an investment property.
Step 1. Enjoy your property
A lot of real estate investors almost immediately rent out or sell their property after buying them. That might seem like a convenient choice for some, but for professionals, they tend to look at the big picture first, which is this: enjoy the property for at least a couple of years and then do whatever you want with it once you have accumulated enough wealth and are financially equipped to live somewhere new.
Step 2. Remember your beginning
As you go through this whole process of buying an investment property, it’s normal to have some cases of wanting to go back or canceling everything. The thing here is to remember your beginning – your why – the reason why you started and the reason why you said yes. Remember your “end game,” your primary motivation in diving into the deep abyss of real estate. Then you will be able to strategize and outline your plan, your next move.
Step 3. Find your real estate “wingman”
You can actually buy your own property without the help of a mentor but always consider that even kings have their own adviser. If you’re a strong, independent person who can take on the real estate world on your own, you might want to skip to step 4. But if you’re new to this business and you would want to hear a professional’s opinion to objectively help you out, then this step is crucial for you. It’s important to have a mentor who sees what you see; who knows what you want to do and helps you to achieve that. Be sure to choose someone whom you respect and has a legit experience in the type of real estate investing that you’re venturing.
Step 4. Consider your financial status
One of the most important factors of investing is your finances. You have to consider very carefully and seriously that buying a property is equally important as finding the right property. If your investment doesn’t go well as planned, which is very unlikely by the way, you have to make sure that you can still land on your both feet. For example if you want to join small investors in larger projects, you have to make sure that it won’t cause you any serious damage, when thinking about worst case scenarios.
Step 5. Do some calculations
You have already done the math when you had the idea about the kind of property you to invest in, and the mortgage that you can afford. Everybody knows that you shouldn’t dive down deep waters if you don’t know how to swim; in the same way, you can’t barge into the real estate world without doing the proper math first. You need to educate yourself with the expenses, income, cash flow, etc. so you will know where your money goes and how it reaches you.
Step 6. Put your plans into actions
Whatever kind of decision you have made, whether you want to invest in new home construction or other properties, it is vital to exercise your plans. It is the outcome of vigorous researching and thinking that led to your specific goals and plan; it’s important that you stick to them so you won’t get lost. Always remember that real estate investment is not a hobby which you can tolerate impulsive behaviors. It is a business and you must treat it as such. Only make decisions that could help propel you upwards rather than pull you down.
Step 7. Connect with local investors
Nobody is an island – this principle applies fittingly to the real estate world. Don’t isolate yourself from the outside world and stop thinking that you can do this all by yourself because, honestly, you need to hear other people’s story as a head’s up of what will happen in the future as they have probably encountered that same situation before. Reach out to other local investors and build relationships with them. That is one way of learning as a beginner real estate investor. Learn from the experiences of successful investors and try to get a few tips from them whenever you can.
Step 8. Find listings
This is the most exciting part in buying an investment property – shopping for it. There are also a lot of ways for you to find the perfect property you want to purchase. There’s websites online where you can find listings, or you can contact brokers or agents in the area you are searching. It’s very important to find an agent who knows the area full well and is well-acquainted with what you’re looking for.
Step 9. Understand the risk you can tolerate
The risk you are willing to take indicates the kind of strategy you are going to use. You have to understand your own attitude because your strategy will reflect it perfectly. Of course, you never take risks without having the pros and cons in mind; especially when you know which side weighs more. When you’re fully ready to take the risk you can take, you’re more than ready to purchase.
Step 10. Assert an offer
After finding the investment property that qualifies everything on your list, you now have to make an offer. Of course, before doing so, you have to make sure that you have clarifies all necessary details big and small to avoid unwanted regrets. Be sure that you only spend the amount that you are capable of which meets your standards. Don’t be fooled by your emotions, again, real estate is business, so treat it as such, leave emotional ties behind.
After going through all these steps, you are now ready, more than ever, to make your purchase and let yourself in the world of real estate investments. Remember, there’s no backing out now, only moving forward! If you find these steps helpful, share it with your fellow investors. You can also share the personal steps you’ve taken after deciding to buy an investment property.