Real estate investing seems like a grand idea to a lot of folks. The idea of owning a property, and turning it into passive income, is one of the major reasons why people take that leap into the unknown of real estate.
It is the blind leap of faith that oftentimes makes people fail when it comes to real estate, rental properties, and investments. This isn’t to say that it always fails, but chances are, if you haven’t done your research, things aren’t going to work out the way you thought they would.
There is a lot that goes into real estate investing, that isn’t just buying a property and renting it out. As nice as it might be for it to be that easy, there is SO MUCH MORE! Taking the time to learn about real estate investing, will only lead to a greater chance of success. Taking a course, attending a seminar or conference, and learning from those that took that leap before you, will only make things easier on you in the long run.
One great place to start is with a simple google search, on things to know before you invest in real estate. With that, you will find an article titled
It is a quick read, but it will give you a template to work with; a list to go through as you prepare for your first investment. Things like location, market, and even the condition of the property, are all part of the big picture. You wouldn’t want to invest $200,000 into a property, just to find out that the entire building needs to be demolished. Research is so important when taking on this type of venture.
Now, this is important for any real estate investor, regardless of how long you have been investing. Whether you are a real estate beginner, or expert, researching a property BEFORE laying down the funds, is an absolute must. Setting a budget for your investment will determine just how far you go with it.
Now, once you have reached the point that you are ready to finalize the investment, meaning you have found a property, researched it, set your budget, and determined whether you are going to flip or rent in the end, the fun begins!
After your first flip/rent investment, the itch to continue will grow. David Ebrahimzadeh has put together a great list of reasons to invest, and this list will always be a great fallback as you go through the years. At any given time the market could change, but David thinks that even a market change or recession if approached correctly, can be a good and profitable thing.
My husband and I talked about owning rental properties for some time, and we aren’t quite at the point where we will be jumping headlong into it…why? because we still have a lot to learn about the process! We won’t jump headfirst into real estate investing, until we have a bit more knowledge under our belts, and I would suggest doing the same for anyone wanting to turn real estate investing into an income source.