When I first decided to get into Real Estate Investing, there are many lessons that I learned early on, and some that I had to experience to learn. It’s okay if that’s you. Just make sure you keep learning and moving forward. It’s all part of the process.
Later in my real estate investing career I remember a property that I was looking at worth hundreds of thousands of dollars, and intense negotiations went on for several weeks back and forth. I walked away from the property because it was a couple thousand dollars off the price I was comfortable with.
Remember, you make money when you buy the property, not when you sell it. And that leads us right into some helpful tips on scoping out your first real estate property!
Don’t get emotionally involved. It sounds like a bad boyfriend, but you don’t purchase the property because you think it’s “cute.” You purchase the property to get a return on your investment.
Location Location Location. Check out that area specifics. Is the property in an up and coming neighborhood? Are there shops and restaurants in the area? How about a college campus? All of these questions are a factor in determining if the property is going to be desirable. That’s important.
Buy What You Can Afford. I know in the perfect world, you’d buy a property and have it generating income the following month BUT, we don’t live in a world where that will always happen. In making a purchase, it’d be good to be able to carry it without breaking a sweat for 3-5 months depending on the market.
Get a Professional in Your Corner. On the other hand, you just need someone with more experience than you. If there is anyone you know that knows something more than you do about real estate investing, invite them to look at the properties, give opinions, and ask questions! Sometimes asking the right questions will make or break the deal right there.
These are just a couple tips I’ve learned along the way. What is a valuable lesson you’ve learned?
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