If you are interested in creating true financial freedom, you have to find a way to earn money beyond getting paid for X number of hours worked. True financial freedom means money is coming to you through various channels that are not dependent on your direct participation at every turn. This is where investing comes in, and there are various channels available to you. One of the most popular, and potentially lucrative, is investing in residential real estate. Like any form of investing, there are no guarantees, and educating yourself to minimize risk is absolutely crucial. Here are just a few core considerations to get you started:
Make a Plan
One of the biggest mistakes residential property investors make is just jumping into the process without giving any real thought to strategies, goals and objectives. So, don’t make this mistake too. Sit down and give some thought to why you are investing and what goals you hope to achieve. Also give some thought to the end game. What is your exit strategy? The clearer you are on the course you want this venture to take, the better decisions you will make.
If you are looking at property investing as a way to make some big bucks fast, you are all but guaranteeing struggle, and perhaps, complete failure. Smart investors, regardless of the vehicle, are patient and realize they are playing the long game. They wait to buy the right properties. They are willing to take the time to educate themselves before they jump into the game. Remember you are looking to create a means of becoming financially free, and rushed decisions and greedy thinking will thwart this goal at every turn.
Put Together a Solid Team
Good investors have good advisors. They don’t try to figure it all out on their own. They turn to smart people who have the knowledge and skills they lack. One of the first things you want to do is talk with real estate agents who are knowledgeable about purchasing real estate as investments, know the area and have experience with the types of properties you seek.
If you are seeking luxury properties in Miami for instance, this is a very specialized area of real estate and you wouldn’t just walk into any office. You would want to work with agents who specialize in luxury real estate in this market, such as the www.thereznikgroup.com.
If you plan on doing renovations, choose your contractors carefully. Get a good lawyer and accountant knowledgeable about this type of investment.
Choose Areas With Which You are Familiar
If you are buying in areas with which you have strong familiarity, you will be in a better position to make informed decisions regarding which properties to purchase. When you don’t know a particular location as well, it is hard for you to properly gauge the suitability of a certain property for the most likely tenants. You won’t know as well whether things are on the upswing and the area will grow in popularity, or if things are taking a downturn.