1. Be Patient
This is a new and exciting journey for a lot of people! However, it can also be frustrating and stressful along the way. Patience is going to be key to not driving yourself crazy and getting too worked up over minor bumps in the road. It’s important to not rush the process and trust that the right property will fall into your lap at the right time. There are tons of investment properties out there, so do not get discouraged if you don’t get the first one that you find!
2. Find a Good Realtor
This is an extremely crucial part of the investing journey. A good realtor with background and experience is going to be the key to making this process as smooth as possible. It’s important to make sure they have experience working with investors and investment property so they can help you analyze deals and potential plans.
3. Find the Money to Buy
You may be fortunate enough to have the cash on hand or able to qualify for some sort of loan as a way to finance your property. However, even if you don’t, you should not let this discourage you! Once you have your property found and you have a plan laid out, you can use this deal as a selling tool to pitch to your family or friends that have the money and as them to join you as a partner in your investment. This could be a very enticing offer to some people!
4. Do Task Renovations Yourself
You may find yourself needing to be on top on task renovations, which can quickly add up in costs. By doing a lot of work yourself, you can save money and make more in profits at the expense of your time you sacrifice. Find spare time on weekends or at night after work if you have a full time job. If you don’t necessarily know how, you can learn! You will thank yourself in the long run.
5. Get Tax Smart
Making money in real estate investing also has a lot to do with saving money on taxes. Save a lot of money in the bank by using legal tax deductions allowed by the IRA! Find an accountant who has experience with real estate tax laws and can help you learn what expenses you are allowed to write off against your income, which will ultimately lower your taxable income.