You, and everyone else! 😉
Maybe you saw Chip and Jo create $50k in “instant equity” or you’re beginning to realize Christina and Tarek never “flop”and it’s got your wheels turning! How can I make money in real estate too?Â
While these TV shows are most certainly entertaining and inspiring, it’s important to remember they are just that – TV shows.
Don’t get us wrong, we LOVE investing and helping our investor clients find properties that help them get closer to their financial goals, but we see new investors, in particular, make a few mistakes as they begin their quest.
Here are a few quick tips and tricks for getting started and staying on track!
First, get to know yourself!
Ask yourself these questions – What location do you want to invest in? What type of property are you looking for? What return will make you happy? Are you looking for cash flow or equity gain? BE SPECIFIC!
The biggest mistake we see is that investors say “I’ll work on any project that can make me money.” FALSE. You might think you will, but when it comes down to it you’ll likely stick with what you know and what you’re already comfortable with, AND THAT’S OKAY! It can be extremely challenging for us as real estate professionals to field properties and analyze deals specifically for you if we don’t know what you’re looking for, so start with a basic outline of what would work for you and stick with it. We can help you figure this out too.
In this market, chances are pretty good that you will not find what you’re looking for immediately. Hang in there! If you stick with your gut on what a solid investment property could look like for YOU, you will find it and it will make the deal even sweeter when you do!
Second, hire a general contractor.
…or get really good at estimating repair values yourself. Start getting bids for work on properties as you consider them and make some friends in the home repair/maintenance industry. As real estate professionals, we can certainly help point out work to be done and areas of concern in a property, but we’re not experts on repairs and pricing. You’ll need some other professionals to jump in and join the team along the way!
Next, prioritize cash flow or appreciation.
While finding a property with the potential for both cash flow and long-term appreciations would be a slam dunk deal, it’s important to know which return you personally prefer so we can understand what realistic goals you’re aiming to achieve. Can you get both? Totally, but it may very well depend on the market for your area and current marketplace trends.
Finally, don’t fall into the ‘analysis paralysis’ trap.
You can only read so many books and listen to so many podcasts before it’s time to DIVE IN! The best learning comes from doing, and real estate investing is no different. Pick a project, go after it, learn a thing or two, and repeat.
We’re here to help!