5 Tips To Prepare For Buying Your 1st Investment
By Nicole Rueth - June 24th, 2020
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So you want to invest?
Beginning to invest in real estate can be a very exciting but also overwhelming! There's a lot of moving pieces and so many options.
Here are the five steps that will help you step forward on the right foot.
With so much uncertainty around us; every one of us is seeking security, longevity, stability. Real estate gives us a secure roof over our heads. But now, maybe you’re considering expanding homeownership into real estate investing. But how do you know if you’re ready to take that first step. I want to share five tips that will put you on the path to building wealth through real estate.
- Build your credit! There’s no quick fixes when it comes to your credit, which is why planning ahead is key. One of the first steps to qualifying for a loan is pulling your credit and mortgage credit reports have the longest look back. If you’re thinking about purchasing property make sure you keep your accounts open, even if you don’t actively use them. On the accounts you do use, build a long history of paying your bills on time and keeping your balance low.
- Know your goals. Are you building your portfolio? Focused on retirement? Or creating current cash flow? Depending on your reason you may want a different property, loan product or type of tenant. Set up clear goals to help narrow your search and add clarity to the process.
- Know your rules. Create guidelines for what type of property you are going to invest in. There are so many different options that it can be overwhelming. I personally seek out brick side by side quadplexes in North Denver with each unit having a yard that can be afforded by two people working minimum wage jobs. Why? Because Walmart is always hiring! But seriously, even during the worst of COVID they had job openings. Not one of my renters missed a monthly payment this year.
- To House Hack or not? That is the question! By living one year in your investment property, you can qualify for lower interest rates and have to put less into a down payment. But are you ready to move? Is your family in a position to do so? For those getting in the game later in life, house hacking may not be the most appealing option. However, if you are in your 20’s or 30’s, this can give you an advantage. It very well might be the key to building your investment empire.
- Find Your A Team. Now that you have set the stage for success, make sure you have a team of professionals to bring the win home for you. Having a great Realtor will ensure that you find the perfect property at the price you need it at. While a trusted lender will get you qualified for the loan to make ownership possible. Your team should explain each step of the process to you making sure you know exactly what all your options are.
Ready to jump in?
Let us help you plan out the best next move towards for your financial goals. Join us as we dive deeper into all things investing at our monthly Building an Investment Empire class. Everyone is welcome! Beginners and seasoned investors alike! RSVP Here