How To Purchase Your First Real Estate Investment Deal
New Year, New Real Estate Investments!
With the New Year, everyone gets their resolutions and starts to push towards bigger and better things. Many people look into real estate investing as a passive income source to be able to provide a stronger income for themselves and even retire in some cases. After all, real estate investing has one of the highest rates of turning investors into millionaires, but what if you have no previous real estate experience? Where do you start? What do you do? Do you speak with lender, or go directly to an agent? Do you need to have a downpayment? The questions can be endless, and that’s why we are here to help.
Step One – Start Saving Money
I don’t care if you save $0.01/day or $100/day. Either way, save money! Even if you don’t use it towards a real estate investment it a good personal financial habit that I see too little of, but if you are looking to invest in real estate I would tell you to start saving immediately, and save more. Most people think that they can save $10,000 and start real estate investing in a meaningful way, and unfortunately that is not the case. In some areas, and with some investment strategies that may be possible, but for what most rental investors are looking for, they will need around $50,000 – $100,000 to comfortably execute on their investment goals.
For most people their situation does have some intricacies, so our best action step to recommend would be to call us and talk to us about your situation (Ideally with clear answer to step two and three). Then we can come up with a good plan to help you start investing in the least amount of time possible, while still hitting your investment portfolio objectives.
Step Two – Learn About Yourself
Why are you looking to invest in real estate? Most people will answer because they want to invest in a passive source of income and they’ve been told real estate is the way to go, but that doesn’t give you a solid reason to purchase your first real estate investment. Are you looking to build this portfolio to retire, are you looking at creating enough income just to be able to quit your job and do something new? Do you want this money to afford yourself and your family a new trip around the world once a year? It could be any reason really, but it has to be something important to you because when it gets hard (and it will) you will need to know why you are investing in real estate with solid clarity.
Step Three – What Type Of Investor Are You
Are you an investor that wants to own only nice properties? Maybe you really want the cash flow from a property to provide you with more expendable income, or possibly you want the appreciation of the property to skyrocket over the next decade so you can own a property that you can take lump sums of money from. Either way, it is important to know what type of real estate investor you are, so we can tailor your portfolio towards your goals in the most efficient way possible.
Have you taken care of Step 1, 2 and 3? Now it’s time to give us a call and start the actual searching process. With a few more steps, you will be well into your property search and onto your investment journey.
We have done many deals, and continue to do many deals that return our clients a net return of 6%, 8% or even double digits on their real estate. If you are interested in real estate investing in Bakersfield, feel free to reach out to Synergy Real Estate and Property Management. We provide our real estate investing clients a one-stop shop service where you can be sure that you are buying a quality investment property, and having that property managed in order to preserve your initial investment capital.
Until Next Time,
Sanjeev (Sunny) Advani
3400 Panama Lane Ste J
Bakersfield, CA 93313