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Jonathan Aronson
  • Smithtown, NY
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Brand New Here

Jonathan Aronson
  • Smithtown, NY
Posted

Good morning. I am brand new here and to real estate investing. I am finally ready to get started and I am not even sure what I am looking to invest. Looking for advice on how to navigate all of the information on here. Hopefully something that will narrow down what type of investments make the most sense for me. Thank you in advance. 

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Shiloh Lundahl
  • Rental Property Investor
  • Gilbert, AZ
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Shiloh Lundahl
  • Rental Property Investor
  • Gilbert, AZ
Replied

@Jonathan Aronson here are three questions to ask yourself to help you get started.

Where? Which location would you like to invest in? It's easier to invest where you live logistically but it might not be easier financially. Do you live in a state that is supportive of investors or that is negative towards investors? 

What? Which type of asset class interested you the most? do you like single-family homes? Do you like small multifamily plexes of two to four unit units? do you like midsize multifamily apartments of 30 - 50 units or maybe you like large multifamily complexes of 100 plus units. What about mobile home parks, are you interested in those? maybe you like more hospitality and something nicer that you can have as a vacation rental and you can rent it out on Airbnb or VRBO? You can also get something that has many bedrooms and you can do a rent by the room model, which is what a lot of people like today because it produces higher cash flow. and there's a few other different asset classes as well that I haven't mentioned. figure out what kind of asset would fit well with your personality and matches the amount of involvement you would like in investing.

How active? Some investors are very hands-on in every aspect of the investing process. And some investors are almost completely hands-off and they will lend to other investors that are more hands-on and they will get a return on their money. So they basically become money leaders. they lend money to individual investors or they put their money in a fund or they put their money in a syndication if they want to be more passive and have an operator do all of the hands-on work. It's really important if you got the passive way that you research the operators to see what their track record is and that you research the asset and that you consider the market. You will have the best chance successfully investing in other people's deals if the asset is goof, if the operator is good, and if the market is favorable to the asset. if one of these isn't good, then it's possible that you don't get a good return and you naught even notice get your whole investment back. And there are also some investors that are somewhere in the middle of active and passive. you just need to choose how active you want to be?

Why real estate? The last question that probably should be the first question is why do you want to invest in Real Estate specifically? What do you want the Real Estate to do for you? is it easy to get lost in the world of Real Estate because there's so many types of real estate and so many ways of doing it. So it is important to hold onto what it is that you want the Real Estate to do for you so you don't get lost somewhere along the way and you have Real Estate help support you in reaching your goals. 

Good luck to you. Let me and other know if we can help you.

  • Shiloh Lundahl
  • 480-206-1209
  • Podcast Guest on Show #287
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