When starting out as a real estate investor, just selecting the “right” strategy can seem like a daunting process.Where do you invest? What type of property should you buy? Which strategy is right for you?
For many new investors it is tough to know where to start. In this article we’ll go over 4 steps that will help you choose the right investment strategy for you to get started with confidence.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
1. Determine Your Objectives
First you need to be clear on what you want to get out of your investing. Are you looking for something short term or long term? Are you going to focus on cash flow or equity growth? How hands on do you want to be? How much time and effort do you want to put into your investment?
These are all important considerations which should be thought out in advance of your first transaction. Once you get clear on what you’re looking to get out of your investment, you can start to seek out the right strategy.
2. Examine the Big Picture
With your objectives in mind, you can now start to look for the right strategy to meet your goals. Start out by looking at every possible strategy you can find and learning the pros and cons of each. By examining all of the options you’ll know what strategies are available to you and can confidently choose the right one to meet your needs.
3. Filter Your Options
After doing your homework and figuring out all of the strategies available to you, it is time to start filtering your options. Evaluate the pros and cons of each strategy and see how it measures up to your investment objectives. Narrow down the top few strategies that would best meet your objectives.
4. Speak with Experts
For each of your top strategies, find someone who is an expert on that strategy and speak with them. Many veteran real estate investors are happy to share their knowledge with new investors, and hearing all about the pros and cons of their particular strategy will give you unique insight into whether or not it will be a good fit for you.
Spending some time doing your homework will take you from a state of overwhelm to a feeling of confidence as you select the strategy that is best for you on your first deal. Having the ability to move forward with confidence is worth the time you’ll spend doing your homework, and you’ll get some valuable tips from veteran investors along the way that could save you thousands of dollars.
photo credit: Steven | Alan