The more people you meet, the more real estate networking meetings you attend, the more contacts you make, the more likely you will be to succeed. Build relationships and you will be successful, but it’s not easy and its not overnight. Don’t give up too quickly and don’t believe its as easy as it appears on TV. – Timothy VandenToorn, United Properties of West Michigan
Buy Your Personal Property First:
Buy your own property to live in first, because financing is easier (less down payment and better interest rates), you need a home to live in, you get the best tax write-offs and then you can move up to a new home in a year or two. Then rinse and repeat, keeping that first property as a rental. Then buy the next owner-occupied home with a low down payment and a good interest rate. – Jennifer Myers, Agent Grad School and Dwell Residential Brokerage
Watch Those Expenses
Don’t underestimate expenses, especially when purchasing older single family rentals. Hidden rehab costs can quickly mount. Ongoing capital repairs and maintenance are a cost of doing business, and must be borne by the owner, not the tenant. The time it takes to turn over a rental and find a new tenant can add to repair costs and mean lost rent. This can add up to ROI far below expectations. – Alex Hemani, ALNA Companies
Don’t Underestimate The Power Of The Market
Depending on what type of investing you are talking about, don’t forget that market moves will change demand and prices drastically, regardless what you do as an investor. Make sure you are investing with long term capital and focused on cash flow or returns. – Michael Harris, CRE Models
Set Reasonable Expectations
Know what you are getting yourself into. Investment properties are all the rage right now, but it’s not an instant moneymaker. Set reasonable expectations for the property you are investing in. These investments can often be time-intensive and costly ventures. Be prepared to shed a lot of blood, sweat and tears for the property, or pay a management company to do the work for you. – Joshua Hunt, TRELORA
Real Estate Analysis Isn’t As Complicated As You May Think
Many believe the level of analysis actually completed for deals is more comprehensive than it really is. Real estate investment decisions are still heavily driven by rules of thumb and gut instincts, which can be pretty shocking to new analysts. As real estate technology and automated analysis software become more adopted, analysis will become more sophisticated. – Marc Rutzen, Enodo Inc
Time and time again I’ve seen beginners taking the easy way out by using leverage to purchase properties. This is wrong and risky. The myth is you don’t need leverage to make money. You can make more money with less risk by being patient and using your own cash.
Get Property Management Here
For property management in the Central Valley contact RPM Central Valley today by calling us at (209) 572-222 or click here to connect with us online.