Before investing in property, you should be figuring out what you bring to the table. You’ll need to figure out your motivation, strengths, and weaknesses before you proceed. 5 steps to tTake before beginning your rental property investment search.
Be Clear on Motivation
Before you chase down your first investment property, figure out why you’re looking to invest. It’s important to dig deep. If cash is your only motivation, owning rental property might not be the best way to make it. It takes a lot of work and care to the property itself as well as the tenants who live in the space. Make sure you have deeper motivations for your investment. While you do want to make money, is it because you want to build a nest egg? Consider the bigger “why” in the picture. That will keep you going when things get tough.
While new investors may think they don’t have anything to offer except the money to buy the property, they have plenty of strengths to bring with them. Everyone has talents and strengths that can be translated to other opportunities. You might be a great negotiator, or you really care about other people. The personality traits you bring to the table can help you succeed, but only if you leverage and use them with your investment. You might have time to devote to fixing a property initially, but if you don’t spend the time, that strength was wasted.
On the other hand, there are weaknesses that you bring with you too. They aren’t necessarily the fact that you’re inexperienced. You might not have a lot of time to devote to this venture, or you might relish the idea of dealing with tenants. Once you’ve identified your weaknesses, you can find ways to supplement them like hiring a company like Keyrenter Salt Lake to handle the tenants. You might not be great at making repairs, but you can hire an Salt Lake property management company to handle that for you. A big weakness can jeopardize property ownership only when you don’t recognize it.
Before you begin your search, consider where you’d like to own property. Some investors choose a less affluent neighborhood with more rental units while others decide to buy more than one single family home in better neighborhoods. Some investors want to purchase in trendy areas that have good access to downtown cafes and other amenities. Think about the kind of tenant you want to attract. Will it be Millennials or older generations that rent in the unit you choose? Property management companies in Salt Lake like Keyrenter can help you choose the right tenants once you have that property.
You should have your financing in place before you try to look for an investment opportunity. It could include banks, borrowing against your home, your 401k or other money lenders. A great deal could slip through your fingers if you are not ready to jump on it fast. Some investors think that they should have the opportunity before finding the financing, but that is the wrong approach. At least have your steps in place before searching for the property you’d like.
There are many steps to take before you being your search for a property. Make sure you have done a personal assessment before beginning the process. You’ll benefit in the end.