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Real Estate Investing for the First Time

John L. is an investment advisor from Tulepo, Mississippi. His career background included everything that there is to know about banking and financing, yet he’d never actually invested into real estate property. Only until John and his wife decided to move out of their small home and into the house of their dreams did he decide to put up a listing.

It received much attention as six families were very interested in the house. After doing some due diligence on the families, he chose the right buyer and thus closed his first rental. While John only receives a small monthly payment, after taxes, insurance costs, and such, he knew that this deal was a stepping stone for him to move on to larger properties in the future.

John never thought about investing into real estate until he realized that there could be a reasonable amount of extra income that could be placed in any extracurricular activities that he and his wanted to do. If you are like John and the thousands of other individuals that struggle to get started on real estate investing, these tips will help you get one foot in the door.

Build Your Wealth

Starting off, you’ll need to have capital to invest. You won’t need to be a millionaire but there does need to be a certain amount to purchase the property. That’s pretty much a given though.

Research Your Properties

Always take the time to research the properties that have a good deal. Once you’ve found some that are to your liking, take it a step further and investigate the building. You’ll ideally want a building that won’t require expensive repairs and is in a condition that’s livable. You have to remember though, that the potential for a property can increase over time only if you manage it carefully and have a plan laid out for its success.

Manage Your Utilities

Think about how many individuals will be living in your units. If you think that including water and heat in the rent will help bring in people to your property, then you’re right. It will attract tenants but the more water and heat that they use, the more money it will end up costing you.

Enlist Aid if Necessary

If you believe that your experiences as a homeowner will translate to the bigger page like larger properties, you’re in for a big surprise. This is why property managers exist, to help you out when the physical labors of travelling and making time for your rental property become too tedious. Consider hiring a property manager if you’re operating a larger-scaled property such as an entire apartment building. They’ll take care of all of the managerial aspects and finances. A useful asset, they can also be quite expensive. Be prepared to pay about 10-30% of what you receive from rent to your property manager.
Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that has nearly 7,600 agents and over 65 offices serving the United States.