A very popular subject is how to purchase an Income Property. Common phases include; Real Estate Investing is too risky, we cannot afford to take a risk, we do not know how to get started, we would love to buy our first investment property but are not sure how to get started and the best excuse to not start investing in real estate, we missed the best time to buy, we should have bought 2 years, 5 years or 10 years ago.
Here is a secret to Real Estate Investing. The best time to buy your first or next investment property (income property) is now.
Here are 6 steps that will help you succeed in Real Estate.
1. Real Estate Expert
The best way to avoid rookie mistakes and make sure you invest in cash flow income property is to find someone who is already investing, has experience and can use his or her knowledge to help you get started. Better yet find a professional Real Estate Sales Representative who is currently holding investment properties and invests in the type of income properties you are interested in.
2. Formulas
You cannot just buy a house and think you will get rich. You must use formulas that ensure the property meets all of your financial goals. You do not need to reinvent the wheel and make up your own formulas, work with Real Estate Investors or a Real Estate Sales Representative who focuses on Investment Properties. This individual should have an investment property formula that is working, which has already made them a lot of wealth. Ask them to share these formulas with you and work with them to grow your Real Estate Investing Strategy.
3. Ask the Real Estate Sales Representative: 4 Really Good Questions:
- How many investment properties do you currently owns
- Where have you purchased an Income Property
- Why did you get into Real Estate Investing
- What is a good investment property strategy
Make sure they align with your strategy.
4. Make Adjustment
Just like in life, priorities change, cities change, life changes. Your strategy cannot always be the same. Here is an analogy of how the Niagara Region has changed over the past 5 years. Over the past year the city has built multiple condos and new residences for university students. This does not mean that this city is not a good place to invest in Real Estate but what it means is your strategy may need to change for income properties such as the location on where to purchase the investment properties, the type of house your are interested in and the style of house in your investment portfolio. Make adjustments to ensure that your Real Estate Investment Properties are always providing you with cashflow and appreciation.
5. Proper Team
Ask yourself what is your time worth. Then ask what does a property manager charge for a month’s worth of rent. Key to success is having smart people work for you rather then do everything yourself. Most Real Estate Sales Representatives who focus on Investment Properties and Income Properties will have a good property manager that they can introduce you to.
6. Build Grow & Prosper
Just like the title said buy, hold, refinance or payoff but let the wealth begin.