Education and news for smart DIY landlords!
Having second thoughts before buying a property for investment is completely normal, especially if you don’t have the knowledge, budget, and plans for it yet. But if you have made up your mind to invest in real estate this year, I will share with you everything you need to know to up your chances of achieving investment success.
Join Facebook groups of real estate investors in areas that you’re interested of investing in. Engage in online forums and exchange ideas with other investors. Get acquainted with real estate agents and other real estate professionals to know which markets are hot and cold. Attend real estate seminars if the opportunities are present.
You can also talk to those who aren’t investors but know a certain degree of real estate knowledge such as property managers especially if you’re into a rental type of real estate investment. And you don’t have to worry about competition. There are millions of properties out there and there are only a few investors.
Before you decide to invest in properties, you must first determine if you can afford them and survive once your money is spent. Some investors can afford to buy homes but are left with little to zero in their savings. Don’t be this kind of investor. Always have emergency funds.
Review if you have current mortgages and credits as well. Don’t apply for another mortgage or credit if your debt-to-income ratio meets or is already high. You will be struggling to pay all of it. You might afford to make it but you’ll be left with nothing to put into your savings, retirement, and insurance unless you’re willing to postpone these monthly deductions.
As a follow-up to #2, you must make sure you’re left with little to zero debt whether in your mortgage, credit cards, or car loans before you buy a house. Paying all your debts will grant you a bigger mortgage for more expensive properties because lenders know that you can afford to pay it especially if you have a high monthly income. This also raises your credit score.
If you are struggling to pay all your debts, you should set aside your real estate investment plans first and find other means to raise your monthly income. You can do this by working hard and demanding a raise, working a second job, or opening up a side hustle.
You can also choose to earn more money to save up for a downpayment, mortgage, or a cash purchase.
Aside from reading online articles, attending online lessons, listening to podcasts, and watching YouTube tutorials on how to invest in real estate, read real estate books as well. Earn as much investment knowledge as you can so that you’ll be able to formulate the perfect real estate business plan for you.
Rich Dad, Poor Dad by Robert Kiyosaki is my personal suggestion for beginners because it’s simple to read and it teaches you what attitude you need to succeed in business. Housewise by Suzanne Brangham is for budding investors that have the guts to do real estate but lack the skills to do so.
Don’t let your lack of resources, knowledge, and experience delay you any further because you might miss a lot of investment opportunities. Settle all your debts and learn all you can about real estate to start your preparation now. Choose the right property investment strategy for you. Find the best area for you to invest in. Figure out the property you want to buy for investment. Then, execute all your plans.