Never forget that Real Estate is a "business"wether you have on property or hundreds so before you even start to think about investing consider these 8 points :
1. Do you have the financial resources?
Are you fortunate enough to have cash, access to money from banks such as a line of credit, bridge loan etc, are you credit worthy?
2. Do you know when to buy?
Make or lose your money at the time of purchase. In today's market properties can be purchased for 30-60% less than they sold just a few years ago.
3. Do you know where to buy?
Location, location, location-You will never go wrong if you purchase properties in areas that are considered to be "family friendly".
4. Do you know who is going to manage the property?
Are you going to be the landlord or is it best to use a property management company.
5. Do you have a business plan?
Real Estate is a "business "Do you have what it takes. Do you understand the commitment it takes and the risks? Have you considered your short and long term objectives?
6. Do you have a tendency to get emotional or attached?
You are not going to live in the property. Don't get to emotional. You need to constantly remind yourself that this is a business.
7. Do you know enough of the basics and the math?
How do you know how much to pay for a property to accomplish your objective? How important is the net operating income to you? What about debt coverage ratio or cash on cash return?
8. Do you plan on investing for the right reasons?
Why do you want to invest in the first place? Is it to make a living or generate wealth (2 distinct objectives) Are you better off being a landlord (long term-generate wealth) or a rehabber, a flipper? (Make a living) and treat the profits as ordinary income).
Lot's to think about. So now what? Here's your first step:
If you are interested in becoming an investor feel free to contact Fred Tichauer, 402-679-3914 for confidential consultation and you will be happy that you did.
It's our mission to help our clients generate wealth by Investing in Real Estate.
"Buy Today, Profit Tomorrow"
Check out myweb site: http://fredtichauer.com