NO. Real estate investing isn’t just for the super savvy or the super wealthy.
There are a seemingly endless variety of investment options presented to those of us that are looking for them. You can walk into your bank branch tomorrow and just yell out “I want to invest!” and you’ll have financial planners throwing their schedules at you.
Although there are a multitude of things that we will help you to consider before investing, here are 4 things you should know before you invest in real estate:
1. You don’t have to be rich to start
The term “rich” means something slightly different to everyone, but in terms of investing in real estate, you don’t need to have hundreds of thousands of dollars in your bank account to get started. If you own the house or condo you live in now, you may be surprised at how little the balance in your savings account really matters at all. “Equity” is king. We will prove it to you.
2. You need an expert mortgage broker.
The truth is revealed time and time again, that the difference between a bank employed mortgage rep vs. a seasoned mortgage broker is evident. Not just any mortgage broker will do either, you need to ensure you have an investment savvy and experienced broker working in your best interest. Real estate investing is all about structuring a plan, and you will need that plan to be bulletproof.
Don’t rely on half hearted advice. Get your numbers, and establish a plan with a highly acclaimed broker that has been helping clients build real estate portfolios as a major part of his/her business.
3. Positive monthly cash flow isn’t always the goal
When people first consider investing in real estate, they typically think of either flipping houses, or buying an income property. Each of those can be lucrative scenarios, but income isn’t always the goal in a long-term investment strategy. Depending on your financial situation, breaking even on the investment property each month may actually be the better scenario for you. Rental income is great later on, but you need to be able to build it first.
4. Landlordin’ ain’t easy
Not to end on a negative note, but it’s an important consideration that isn’t always given the weight it needs from eager investors.
The hard truth is that there are a lot of people out there that just aren’t cut out to be landlords. Sure, they can still enjoy the perks of real estate ownership, but not being equipped to handle the responsibility of becoming a landlord can end in trouble.
It’s important to know what you’re getting yourself into, and if you aren’t up to the challenge, then it’s something you want to build into your strategy before you begin. Property management companies are abundant, they’ll cost you a fee for their service, but if factored in properly right out of the gate, you will be in disbelief over how easy it can be.
Funnelling all of the things you need to know before you invest in real estate into only 4 subtitles is actually a little bit crazy. There are a lot of elements to consider, and we have the roadmap to help you.