So you want to be a real estate investor

 step one

Identify Short AND Long Term Goals

It’s important to understand how the type of property you purchase can impact the outcome of your investment in the near term vs the long term. Work with your realtor to align on your goals and start looking for investments to meet those specifically.

 step TWO

Consider Property Management Approach

There are a number of creative ways in which to manage investment properties and all of these methods come with various considerations. As different methods require varying level of involvement and operating costs, your realtor can help to understand the full scope of these items so that your desired outcome is achieved.

 step three

Identify Your Geographic Market

Once you’ve identified the geographic area you desire to operate within, it will be important to establish rental comps nearby in order to identify if any particular subject property will indeed meet you desired goals. Your realtor will help you find these comparisons and help to assess the economics of the investment.

 step four

Explore Financing Strategies

There are various creative ways that real estate investment financing can be structure and once you’ve begun your acquisition journey it is important to understand the various financial levers you can pull to properly capitalize your investment strategy. Your realtor can help you explore the options and assist with finding the right funding partners and strategy.

STEP FIVE

Plan For The Future

Ensuring that properties will provide the appropriate level of cash flow in order to manage capital expense is paramount. Your realtor can help you anticipate what these capital expenses are and how to plan for them accordingly, which will go a very long ways to achieving your desired goals.