Getting involved in real estate investing can be a fun and exciting experience, but finding success can be a challenge if you don’t employ the right strategies and practices.
Consider these tips and tricks for finding success as a new real estate investor!
• Treat investing as a business! Treat your investing endeavors with the seriousness, professionalism and dedication that you would apply to any other endeavor. Also, write a business plan and develop goals to help guide your investments.
• Know your credit score. Generally, you’ll need a FICO score of 700 or better to finance a loan. Also consider your debt to earnings ratio. Whenever possible pay off credit cards and other debts to lower this ratio, as it will make lenders look upon you more favorably. If borrowing isn’t an option for you currently, focus on wholesaling opportunities which require minimal capital.
• Find a good lender. Consult other local real estate investors and find out who they use as a lender. Every lender has unique borrowing guidelines and not all look upon investors favorably, while others are more than happy to work with investors.
• Get your ducks in a row. Obtain a recent bank statement or brokerage statement if you plan to pay cash for a property. Or, secure a loan before making an offer on a property. The ability to move quickly and take immediate action is key for real estate investors, as it will enable you to take advantage of the best and most profitable investing opportunities.
• Look for properties in the right location. Location is everything when it comes to property value and property demand. Knowing where to look is key to making profitable investments. See our recent article on how to select an investment property by location.
• Form alliances, partnerships and network. These partnerships and alliances can go a long way toward helping you succeed! Check out our article on the benefits of forming a partnership with a rehabber if you plan to get involved in wholesaling or fix and flips.
Also, read our article on how to choose the right type of investment property for your unique goals and objectives.
If you’re seeking to get involved in real estate investing, turn to Greg Teele of Teele Enterprises, Inc. Call 224.343.6890.