How to start investing in real estate

Real estate investing can feel overwhelming and complicated, especially if new investors are starting this journey by themselves. Rather than trying to rely on yourself, seek some help from an industry expert. As real estate brokers and agents, our team is also made up of investors. We can provide you with invaluable information on the housing market. We have the most up-to-date information on the market and will be able to forewarn you of any expected changes or downturns.

create a strategy

Investing in real estate is often easier said than done. There are many different factors that you should consider before investing in real estate. Every potential investor should consider their goals, current financial situation and current market conditions. These are tips our team can help you with that will influence your strategy and help set you up for success:

An investor’s goals should outline what they want out of their investment and guide their next steps. Despite this, many people set very general goals like “I hope to grow my investment.” Consider setting S.M.A.R.T. goals instead. These goals are specific, measurable, attainable, relevant and timed. S.M.A.R.T. goals will help you get a better understanding of what you want out of real estate investing and how you can make that happen.

Jumping into investment real estate can be difficult, especially if you have little knowledge of the topic, but again, that doesn’t mean it’s impossible. We recommend speaking to our team who are experienced real estate investors, to learn more about the realities of investing and asking about any advice we have to offer. With years of experience investing in real estate we have an abundance of investment knowledge. Our team can share advice on all aspects of investing whether it is purchasing an initial investment property or expanding your financial portfolio.

The current housing market trends play an important role in real estate investment because it determines how well an investment will do and how quickly. This is why every person considering real estate investing should get to know the housing market, its history, and any expected changes. 

Before searching for properties to purchase, a potential investor should determine what location they would like to invest in. When considering locations, every potential investor should complete a market analysis. A market analysis should assess details like the economic, employment, educational and environmental conditions of the area to help determine whether your investment will thrive or be vulnerable in a particular location. 

The first and most important quality to look for in a property is whether it has appreciation potential. As mentioned previously, appreciation is one of the most important factors in ensuring that your investment is a success. Look for a property that will likely increase in value over time.

Buying an investment property can be an overwhelming task, especially if you are concerned about how it will affect your current financial situation. Little do people know, they are sitting on a pile of cash in their primary residence which can make investing easier. Home equity, which is the difference between the value of your home and how much you owe on your mortgage, can be taken out as a home equity loan and used for a down payment on an investment property. A home equity loan is also tax-deductible, meaning that it can reduce your income tax.

One of the most important decisions you need to make while investing is whether you would like to invest in residential or commercial real estate. Each path comes with its own benefits and challenges, all of which should be carefully considered against your goals, risk tolerance, capital and timeframe. This will help you determine what investment strategy is the best fit for you.

There are two categories of commercial real estate: multi-unit residences or commercial buildings like office buildings, warehouses and retail spaces. While both are considered commercial real estate, they can differ greatly. Properties with five or more rental units designed for living spaces can be considered commercial real estate. This means that investors who choose to buy condos, duplexes and quadruplexes are considered commercial property. In contrast, office buildings, warehouses and retail spaces are the most common commercial real estate buildings and they typically host a business of some sort.

If you want to take the next step, book a strategy call with us to see if we can help you with your next move.

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