Step 1: Find Your Investment Philosophy
As my friends often say, “There is no difficulty with the property; the issue is only with the owner.” There is always a valid owner for any property, so it is essential to decide what type of owner you are before spending any of your bucks as an investment in an asset. Investing is a lifestyle, and you have to determine what kind of lifestyle you are seeking.
Other investors live and work in Class C apartments. It’s all about what you desire in life. Your mission as a realty investor is to make sure you totally understand who you are, what you want from real estate, and then make sure that what you gain meets that demand.
Step 2: Determine what market you want to invest in
A phrase that I like most from Real Estate Radio is, “Live where you want, but invest where it makes sense.” Many people believe that they should invest in their backyard. Although this can be a good vision, it is excessive. Instead, you need to find a market that satisfies the requirements of your investment attitude.
For instance, if your investment perspective is like monthly cash flow, it is not reasonable to invest in many properties with aggressive debt ratios and high leverage that do not allow cash flow. It also does not make sense to invest in a high-value market where expenses are unfavorable for cash flow. Redirect your vision to positive things in life, such as cash flow. This is an excellent market for cash-flow investors; however, this is a nightmare for grow or appreciate investors. But you have to be more determined with the help you render toward other people.
Step 3: Assemble your team
As my coach used to say, “Business and investing are like team sports.” To flourish in any market, especially where you do not live, you must have the right team. The team should include a lawyer, an accountant, a clerk, and a real estate consultant and broker, and you should trust them strongly to give you professional advice on your market and the possessions you desire. Without a team to provide you with specialized advice, you may make a big mistake.