Investing in property is far from simple, but it is not rocket science either. The process of investing in property is a series of steps undertaken with care and knowledge. Because property investors have gone through the process of buying their own homes and often selling one or two along the way as well, building a property portfolio seems to a natural and easier way to grow wealth and secure their financial independence than other methods of wealth creation.
To invest in property a person needs to be well educated in the process, have some knowledge about buying and selling Best Probate Realtor property, about financing a property and the legal aspects.
In saying all that, a property investor should surround themselves with specialist people in the different associated fields, such as:
- an accountant experienced in property investing
- legal counsel
- realtors with investing knowledge
- property investment financing expert
- insurance agent
- property management team
- registered builder if renovating and possibly a draftsman
- maintenance and repair team
When starting out building a portfolio it makes sense to work out some steps to take and here are 7 steps for first time investors:
- educate yourself as much as possible about property investing, reading books and information about the different strategies of making money with property investing
- build a property investment business plan, after all property investing is a business, you are doing it to make money
- work out your financial situation by finding out the cash and equity you have to use
- talk to your accountant about tax situations
- talk to a property investment finance specialist
- then start your search for a property
- contract a property management team
This all sounds very simple doesn’t it? But in truth it is not. A lot of time and effort needs to be taken at each step to ensure that you are making informed decisions in the end. Be wary when dealing with people selling a service or property, but in saying that, do take on board what is being said as it could well be very helpful. Always double check information for yourself to ensure what you are being told is the truth.
Whenever money, and it is big money in real estate, is involved there is always the risk of trust.
The world as it is today is very much a case of ‘looking after oneself’ and unfortunately this has bred some unscrupulous individuals but if you check your information from different sources and feel satisfied, then there should be nothing from stopping you going ahead.
Investing in property to grow wealth has proven to be one of the best vehicles to do so. Like any investing there are good times and bad times, and that is why it always pays to err on the side of caution by keeping a buffer in the bank, not over-committing your finances, staying educated and watching the market.