Passive income can set you up for a comfortable retirement or even an early retirement. In order to set yourself up for success when you break into investment real estate, you want to ensure you educate yourself in advance to prepare for whatever might come your way and set a clear plan with an end goal to strive for.
After 21 years of investing in Real Estate personally and watching my clients achieve their goals and fast track their net worth , I felt it beneficial to put in writing common strategies and tips to help you achieve the same.
Knowledge can take you from being a “good” investor to a great investor. Markets are continuously changing, new trends are always beginning, and old trends are always reversing. Covid was a great example of this, the market spiked and a few years later started trending back down. Continuously researching the market throughout your planning process can allow you to prepare for fluctuations in down payment expectations, interest rates, and housing prices.
Educate yourself on regions where economic growth is booming, where minimal investment in the property could return the biggest reward. Finding locations with great access to amenities and local hot spots will ensure you receive the biggest return on investment, both during your rental period and if you choose to sell down the road.
Setting up, planning and executing specific steps will help you achieve your goal to financial freedom. Set clear and specific goals, keep yourself accountable and write them down, pin them to your dream board and remind yourself daily. You are statistically far more likely to achieve your goal of financial independence by writing down specific and detailed goals than not doing anything at all.
It may seem extremely basic, but by putting it down on paper frees up space in your mind to “see the big picture” and make better (and more financially beneficial) decisions. Revisit these goals regularly to see your progress as you move toward achievement.
Don’t Let Emotions Get In The Way
If you are buying an investment property, it’s all about the math. Don’t get hung up on cosmetics or features of the property that do not structurally impact the safety. Unless you are purchasing a fixer-upper avoid starting any major projects in your first few years of investing. Any major upgrades only add to the monthly rent you will require to offset the costs. A good investment property should offer four ways of generating income, monthly cash flow, appreciation, equity build-up, and improvements.
Find An Agent With Investment Experience
Ensuring your agent has experience in investment properties can help you better identify profitable areas worth investing in, what kind of roadblocks you might expect, and how to navigate them.
There are many lucrative investment opportunities popping up every day. If you have been considering adding to your existing portfolio or just getting started to secure your financial future… We. Need. To. Talk.