Real Estate Investing can be very tiring and rewarding at the same time. Either way it goes, the experience itself can be kind of tricky if misinformed. Here are a few Do’s and Don’ts to help you throughout this process.
Do identify your goals.
Whether it’s Think of the main things you want to accomplish and write it down if you have to. Stick it up on the fridge or in a high place where you can see it often. It’s important to stay focused throughout the entire process, because you will be tried at times.
Do treat this as a business, because that’s exactly what it is. Whether you are happy with your current career and are just doing this as a side business or transitioning into this as your only means of income, it must be taken seriously. Many successful people take profits from their business and invest it in rental property, however, it is still a commitment to do so and you must be able to maintain it.
Do consult with a professional. As much as you may think you have this in the bag, because you’ve done your research, or whatever else, seeking additional advice from a trustworthy source is always a good idea even if this isn’t your first investment property. It doesn’t mean you don’t know what you’re doing, or can’t handle it on your own. However, every time can be different, and better safe than sorry.
Do have an open mind about your investment property. It’s ok to step outside of your comfort zone, especially if all the numbers match up and it is a good buy – even if it’s out of your local market, or slightly different than what you had planned.
Don’t invest with your emotions. Making an investment decision because you’re happy mad or sad can backfire on you and get you into trouble. You will come across many properties, but be careful with falling in love with one. Just because a property is close to your kids, or reminds you of the house you grew up in doesn’t mean it will be the best decision for your financial situation.
Don’t lose sight of the why. You set goals for a reason. So no matter how frustrating it may seem at times, it’s important you go back to why you did this in the first place, push forward to the end and fulfill what you set out to accomplish. Refer back to your list if necessary, take a deep breath and see it all the way through.
Don’t purchase property you aren’t able to support during the first few months. Investing is not a get rich quick type of deal. So don’t get into this if you aren’t financially prepared, because there won’t be immediate cash flow. Of course appreciation over the long run is certainly a possibility, but keep in mind these things take time.
Don’t buy property you wouldn’t want to manage or put your family members in. I mean, think about it. As a tenant would you want to live in something that won’t be properly maintained, or constantly has issues? I doubt it. Aside from that, it won’t keep your interest if you don’t really like it to begin with and you don’t want to end up feeling like you have a burden on your hands at the end of the day.
Don’t invest if you aren’t truly ready! This entire process can be stressful at times, and it isn’t something you do just because you’re bored and need some excitement in your life. Consider your temperament, and whether or not you actually have the time to devote to doing this, because it is a big commitment. Investment property can be an excellent venture, but it will require some hard work, and you must be prepared to deal with all aspects of it – whether it’s good or bad.