5 Steps To Take To Prepare For Your First Investment Property

So you’ve decided that you want to purchase a property after learning about the effectiveness of Real Estate as an investment vehicle, and you’re wondering where to begin. Maybe you attended an event or panel highlighting Real Estate Investing, have been watching your colleagues or loved ones pursue this track, or have consumed information on the benefits of going down this path. Like with anything else in life it is vital that you get your ducks in a row before jumping in, and if you do the following you will position yourself for success in your first of many Real Estate Investments

1. Build Up A Cash Reserve

In order to invest money in anything you first need to have money saved. How much you need will depend on the market you are in. Investing in a property in San Francisco, for instance, is much different than in Philadelphia, which is much different than in Detroit.

2. Establish Excellent Credit 

You’re departing on a journey and in order to avoid as many road bumps as possible, you want to make sure that your credit is A1. Even if you purchase your property in cash, if you decide to take Real Estate Investing more seriously eventually you might decide to leverage your cash with creative financing. This could mean hard money, various investment loans, or the number of other ways available to finance your deals. A score in the range of around 740 is a solid standard to shoot for

3. Choose Your Strategy

When it comes to purchasing an investment property, what is your game plan? Are you looking to renovate a distressed property to force its appreciation, sell it and make a profit from the sale? Or are you looking to purchase a property and turn it into a cash-flowing asset? Whether you decide to flip the property or turn it into a rental property will significantly affect your process

4. Join A Real Estate Investing Group

There is no better place to go for someone interested in Real Estate Investing than a place made up of other Real Estate Investors or Investor hopefuls. The Real Estate industry is driven by relationships, and joining a Real Estate Investing group is a great way to build with others. Find a group or an organization where you can network or build, learn about what resources are available in your city or that might be universal, and maybe even where you can grow your knowledge for the space

5. Perform Your Due Diligence 

You won’t fully know what’s in store with the process for purchasing an investment property until you go through it yourself, however you want to do your research beforehand. It’s very easy to overlook the more subtle costs and implications that go into purchasing a property. Blogs, websites, videos, conferences, workshops. These are all ways to take this step. Additionally, being that it’s your first property, it would be helpful to consult with an investor-friendly agent about the transaction itself, and an experienced investor will also be an invaluable source of advice 

There is much to learn when it comes to investing in Real Estate, however there is a wealth of information out there and the blueprints already exist. Nothing beats creating a favorable financial profile made up of excellence credit and some savings, the importance of good mentorship, and working with an informed agent. If you’d like to talk more in depth about the steps to take to invest in an investment property, or to discuss your Real Estate goals, feel free to reach out to me at AB@Mosaicbrokerage.com, or on social media @sirakinb

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