From getting finding a property, to securing a lender approved contract, to finding the right insurance, there’s plenty beginning real estate investors need to keep in mind as they move through the process. Investors that are newer to the real estate market might not necessarily have all the information they need right away. If you’re struggling with finding where to start as an investor, use this step by step guide to get yourself on the right path.
- Deciding on a strategy: According to the Real Estate Investing Report, 55% of millennials are interested in investing in real estate, the highest percentage of all demographics questioned. However, what many millennials don’t know is that there are several types of real estate investment. Decide whether you’re looking to flip a property and sell it again, or if you plan to become a landlord.
- Finding a property: Once you’ve determined how you’re going to be using the property, you can begin the search for one that will fit your needs. Take into account location, budget, size, and the amount of work that you’ll need to put into the property to make it work for your needs.
- Funding your purchase: One way or another, you’ll need to spend money to make money. Look for a lender approved contract, a stable mortgage, or consider even making a cash offer for the right property. If you plan well, you’ll be able to make your money back later on. For most, the deciding factor on how they’re funding their purchase is whether they have the funds to cover the purchase now, or will need to borrow to make it a reality.
- Deciding on insurance: Your purchases and planning aren’t done once you’ve purchased your new property. You’ll also need to figure out landlord insurance or insurance for realtors, depending on how you’re expecting to manage your investment. Working with an independent insurance agency can help you find the right property insurance for you.
- Turning a profit: Most importantly, once you’ve found, purchased, and insured your investment, you’ll need to take the final steps to turn a profit. Renovate your new property or rent it out to tenants, and you’ll soon be seeing income.