Despite all the doomsday predictions about rising inflation and the housing market, real estate remains a favorite investment of Americans when thinking long-term. Are you thinking about getting into real estate investing as well?
You will want to choose rental properties that get you a good cash flow so you don’t end up paying out of pocket. Keep reading for some tips on property investment for new investors like yourself.
Start Small, Go Slow
There’s no need to rush with real estate investing, especially in the beginning when you are learning the ropes. Choose smaller properties, so you can get your feet wet, and then go on to bigger, riskier properties once you feel more comfortable.
Avoid FOMO Real Estate Investing
You are not in competition with anyone else except yourself. So don’t compare yourself to others, especially those who have been investing in real estate longer than you have.
And don’t buy properties in a rush because you are afraid of missing out on some good deal without doing the proper due diligence on it. That’s a surefire way to lose a lot of money fast.
Always Focus on Cash Flow Over Everything Else
Take your time to analyze every rental property you look at for cash flow and other factors before making your buying decision. If the property investment doesn’t work with your budget and strategy, then find something else. There are always new properties coming up for sale, so you will never run out of investment ideas.
Hire a Good Team
Make sure that you spend the time to put a good team together of plumbers, electricians, contractors, and property managers. There’s no way you are going to be able to do it all yourself. And why would you want to, in any case?
Remember, the point of real estate investing is passive income and financial freedom. You are not doing this to become more entangled and shackled by the world of work but to become free and unencumbered. Delegation is the name of the game here.
Sometimes you might get great tenants just by fluke, but mostly you are going to have to put in some work to find those reliable tenants. One way you can do this is by putting some effort into rental property marketing. If you aren’t savvy about it, consider hiring someone to help you with it.
New Investors Can Be Successful as Well
The property investment market isn’t over-saturated, despite what the online gurus might say. New investors like you can find good rental properties as well. It might take a bit of effort at first, but as you learn and grow as an investor and build your network, you will become faster and savvier about it.
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