5 Things to Consider if You're New to Real Estate Investment

The secret to building a successful real estate portfolio lies in an understanding of the fundamentals of real estate and remaining focused on buying only properties that meet those criteria. If you’re a new investor that’s just starting to consider real estate as an investment tool, below are a few tips to get you started:

Are You Financially Prepared?                      

It’s important that you have a firm grasp on your personal finances before investing in real estate. If you do not have adequate savings earmarked for investment real estate, do this first.  Real estate investing is not a “get rich quick” scheme –the most successful investors use real estate over time to build wealth.

What Kind of Property Should I Buy?

Real estate investing is an exciting field because of the many different niches and strategies you can use to customize your plan to fit your personality and position in life. There are literally hundreds of ways to invest in real estate, so find the strategy that best fits your lifestyle.

What are the Expenses Involved?

In addition to those expenses that are obvious (i.e. debt service, taxes, utilities, etc), many first-time real estate investors underestimate the unknown expenses.  As Dave Ramsey, the popular financial coach says: “you should expect the unexpected”.  Leave yourself some margin in your proforma for irregular expenses that might not appear on a profit & loss statement.

How do I Pay for the Property?

If you have the money, you can pay all cash and not deal with banks or loans.  Another option is to supply just the down payment and take out a mortgage to cover the remaining cost.  The terms of financing can be vital to your investments success and should be carefully considered.

Assembling a Real Estate Investment Team

Good property managers, accountants, legal advisors, etc will add value to your investment and should be seen as an asset to the process.

Conclusion

Atlas Real Estate Advisors is experienced with all facets of real estate investment, from single-unit purchases to portfolio management for institutions.  We would be happy to setup a consultation with you to help you develop your own personal investment strategy.

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