Are you new to the world of real estate investing? If so, you’ll find that there are loads of people offering advice and distilling all those tips, tricks and words of advice can seem rather daunting. So Greg Teele, founder and CEO of Teele Enterprises, Inc., has compiled a list of simple dos and don’ts for anyone who’s just getting started as an investor.
As you enter the world of investing, you’re going to find that it entails a lot of strategy – a bit like sports. It’s vital that you have a good game plan, so consider these points as you get started.
Don’t Spend a Fortune on “Systems”
eBooks, seminars, workshops, webinars, tapes – there’s loads of them out there. And while it’s smart to educate yourself on the basics of investing and it’s also wise to develop a strategy, but don’t go overboard spending money on systems and gurus.
A vast majority of investment gurus don’t make money as investors; they make money selling books and ebooks and other materials to people like you. So instead, work with an experienced coach or mentor, who can work with you one-on-one, guiding you through the process. Teele Enterprises offers this sort of service, as do others.
Do View Lots of Properties
The more properties you view, the more opportunities you’ll have to profit. Many new investors make the mistake of jumping on the first property that they see. But a more seasoned investor will hold back, fully shopping their options.
What’s more, walking away initially can give you an advantage if you opt to negotiate.
Don’t Pick Properties Based on Personal Preferences
It’s hard to remove your own preferences from the equation, but you must look at an investment property objectively. You’re not buying this property as a new home; it’s an investment property — a business acquisition — and it must be treated as such.
Many novice investors are prompted to take action based on their own taste preferences and this can be a big mistake, causing you to purchase a property that may not be not the best option out there for you and your investment goals.
Don’t Hold Off Waiting for the Perfect Property
That first property purchase can be frightening and many first time real estate investors opt to pass on wonderful investment opportunities, instead holding out for a better opportunity.
It’s wise to be selective and move only on properties that suit your investment goals and objectives, but don’t allow yourself to be paralyzed by the hope that there’s something better just around the corner.
Do Know Your Numbers
Novice real estate investors need to have a firm grasp on their financials; properties should be selected based on these points.
The most important considerations are net income, cash flow, return on investment, cap rate, cash-on-cash return and the total return on investment (ROI.)
If you’re seeking to get involved in real estate wholesaling and investing in the Chicago area or beyond, or wish to sell a distressed property, contact Greg Teele, CEO and founder of Teele Enterprises Inc. Call 224.343.6890.