Buying your first property may be very stressful, because you don’t know the market, how it works, if you are going to do a safe investment, etc. Yet, if you don’t buy the first nice property you see and if you ask for help to the right people, your first real estate investment will turn into your most exciting experience ever!
Here are 3 major things to consider, before making the first step into the real estate world:
1. What is your end goal?
Having a clear goals in your mind is extremely important when buying your first property (as well as all the others, of course).
Ask yourself what do you want to accomplish: do you want to make an investment with returns? Do you have a deadline because you want to move within a certain date? Would you make renovations or do you want a finished house? Ask yourself as many questions as you can: this will help you to have a clear idea of what you are looking for in your mind.
2. Know your exit strategy!
Before buying your first property, you need to have a goal in mind but, before you make the offer, you need to set an expectation. It’s important for you to plan your exit strategy. What is exit strategy?
If you are going to refurbish the house and resell it, your exit strategy is to flip and sell the house. If you are buying to get back a quick profit on the house then don’t plan on any repairs. Both flipping and wholesaling require different pricing, planning and efforts, but they both are examples of exit strategies. You just need to have it clear in your mind, to better reach your goal.
3. Choose the right team
Real estate is a relationship business, so choose the right people you want to be with you and that can support you better, from the real estate agent, to the construction company, that will take care of all your renovations.
Buying, flipping and taking care of your new investment is a teamwork, so be sure that yours is solid, reliable and that will take care of your property as you would do, when you are not around.
There won’t be any other deal like your first deal. Buying your first property only happens once! Make sure that everything will go smooth and easy and you’ll feel like buying your second property immediately!