There is a lot to learn when you decide to start buying real estate. I equate this to deciding to start a family or have a pet.
Both are a lifetime commitment and both require consistent care. There are times when they can make you feel like you’re on top of the world and times when you wonder why you ever thought having them was a good idea. However, both can produce long-term positive results (dare I say dividends) if they are cared for properly.
There is never is a perfect time to have another child or buy another property. There will always be an excuse why next week, next month or a few years from now is a better time to start. This is what I can tell you from my experience.
Knowing a few basics will give you the confidence you need to take action. It will be important for you to learn:
- What types of properties are easiest to own
- How to find properties that aren’t on the market
- What to look for when viewing a piece of property
- How to read and what to look for on an income & expense report
- How to calculate the return on investment – ROI for a cash-on-cash purchase or a leveraged bank financed purchase
- Responsible creative financing techniques
- A few simple systems to keep you organized
- Who you need on your team
- Best practices for leasing properties
- How to maintain zero vacancy and a strong cash-flow
Knowledge is power. If you don’t know the basics, fear will hold you back.
Just like children, each property has its own personality and unique needs. Some are going to be easy and others will need a little extra care. Some are going to keep you up at night. But if you remain committed, in time, you learn how to take the best care of your property in a way that works for you.