Five Things to Know Before Investing in Real Estate

Five Things You Should Know Before Investing in Real Estate

Do you want to get a head start on becoming the next Chip and Joanna Gaines? Maybe you're new to real estate investing, and you don't know where to start. 

Here are five tips to help get you started.

One: Become laser focused on the area that you're going to work in. Think zip code rather than area code, so you can get a strong understanding of the dynamics that affect that market.

Two: Determine what you're looking for - rental or flip, fourplex, single home, duplex, student housing, vacation home, or Airbnb. There are many options when it comes to real estate investing and knowing what game you're looking to play helps you gain the knowledge and confidence to dive in.

Three: Should you work with a realtor or get your own license? We'll cover the pros and cons of this approach in a future post, but you'll want to consider whether or not you want to invest the money and the time to get your business up and running with a license.

Four: Who is your team? Is a realtor involved? Need a contractor? Is there a business partner? Will you purchase as an individual or an LLC? Determining who is on your team and how your team is organized will help you make better and quicker decisions along the journey.

A great real estate team can save you a lot of time and provide valuable insight into market conditions and negotiations and use their network to help you find that diamond in the rough.

Five: Financing - how you get your money is an important detail. You might find out that financing an investment is much different than financing your primary home. Depending on your investment goals, you may have to look into hard money lending, finding a private banker or looking into other creative financing options.

If you want to learn more, be sure to follow us on social media and subscribe on YouTube to catch the rest of our investment videos coming soon.

In the meantime, feel free to drop a comment or reach out with any questions. Let's talk soon.