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1. Are You Ready to Make an Investment?
Investing in real estate is not everyone's cup of tea. While you don’t need to be a 'fat cat' to buy a rental property, it’s still important that you have a good hold on your personal finances before you invest in real estate. Rental real estate investment does not make you wealthy overnight, it is an ongoing process that takes time.
Only you can tell whether you are ready to start investing or not. So, take time to gather information by reading real estate blogs, websites, and forums and know what real estate investing actually is.
2. Do You Have a Plan?
Lack of planning is one of the biggest reasons why most people lose their money – whether in business or real estate. A proper investment plan will help you reach your destination successfully.
3. What Kind of Property Should You Start With?
Investing in real estate is an interesting field because of the different strategies you can use to tailor your plan to fit your financial position.
Perhaps you are willing to take risks by preferring a “fix and flip” business. Or maybe you are looking for long-term stability and would like to invest in single-family rentals. There are many ways to invest in the property market, so look for a strategy that best fits your financial situation.
4. What are the Local Vacancy Rates?
A vacancy is one of the most costly expenses you, a real estate investor, are likely to face. However, vacancy is a common part of a real estate investor’s life and should be well-prepared for.
Contact the local property management companies to find out the average vacancy rate in the area where you are planning to buy.
5. Do You Know All Your Expenses?
A common mistake many first-time real estate investors make is underestimating their total expenses. Sure, most investors understand there will be repairs costs, but there are many other expenses they may not realize. These include:
- Utilities
- Accounting
- Legal fees
- Evictions
- Vacancies
- Scheduled maintenance
- Capital improvements
- And, more
6. How Will You Finance Your Property?
There are many ways you can pay for an investment property. If you have that much money, you can pay by cash. However, if you don’t have all the money needed, you can submit just the down payment and take out a mortgage to cover the remaining sum.
Always have multiple plans for your real estate investment, and know exactly how you plan on building wealth with the investment.
If you are planning to invest in real estate, contact Rental Home Financing for competitively priced residential blanket mortgage products.
We look forward to meeting your needs.
Just call at 888-375-7977 for more information direct from our consultant.
Rental Home Financing Investment Loans