Many people have come to me and asked me how or what should they do to start investing in real estate?  For new and novice investors, I tell them there are many questions to ask, but there are 4 key questions to ask yourself when you want to buy or invest in real estate, especially when you have found a prospective property you would like to purchase:

1. What type of investment is this property for? In other words, what is the purpose of this property? Is it cash flow you are looking for or profit?  Or are you hoping for appreciation?

2. What is your plan for this property?  Do you plan to keep it long term?  Or do you plan to make a quick profit from it?  Does it make financial sense to purchase this property?  

3. How will you obtain this property?  Will you be buying it all in cash?  Do you need financing?  Do you know your credit score?  Do you know whether you qualify or not?  Are you working with a banker or a mortgage broker?  Have you done your homework and due diligence?

4. What is your exit strategy?  Have you thought about what happens if your plan for the property fails or does not perform the way you wanted?  Do you have alternative plans for this property?

Once you are able to answer all these questions BEFORE you put in an offer, you are ready to begin your real estate investing venture!  But don’t forget that investing in real estate is a journey.  There will always be ups and downs in real estate … so be patient and you will eventually reap the fruit of your labour!

If you would like to discuss more about real estate investing in greater depth, feel free to contact us and we’d love to work with you!