Investing in real estate is not for the faint of heart. Whether you’re contemplating a fix and flip, or thinking of becoming a rental property owner, taking the leap into real estate investing is a big deal. Veteran investors will probably tell you they either jumped in with both feet and learned on the fly, or they were extremely cautious and deliberate when starting out. No matter the method of entry, or amount of experience, there are hesitations that all real estate investors will have at some point.
When you begin thinking about purchase price, rehab costs, loan costs, buying/selling/holding costs, and all of those items adding up, money – or lack thereof – can certainly be a hesitation to any investor. Keep in mind that investing in real estate is not unlike any other type of investment, there is some inherent monetary risk that you have to accept. At the end of the day, you have to ask yourself, is it worth it or not?
Working with a great team can help you deal with this hesitation. A savvy real estate agent can insure you’re getting a great deal, enlisting a proven contractor can keep rehab costs down, and we at CIVIC can tailor a financing program to suit your investment goals.
Investors will often struggle with location. Maybe the market you are in is too expensive, or the available inventory doesn’t meet your criteria, either way, location can present legitimate investment hesitations. You will ultimately have to make the call: Are you going to stick it out where you are or look in a different market? If you choose a different location and you are not familiar with it, drive or fly there. Get out and walk around or at least drive the streets. You will never truly know if moving to a different market will work out unless you give it a try.
You will ultimately have to decide how you will manage your properties and this can be a big hesitation for some.
What happens if you have a water heater go out at 3 a.m.? What if your tenant stops paying? What if workers install the wrong windows?
Will you self-manage or hire a property manager? Will you supervise the remodel yourself, or do you have faith that a contractor will handle everything for you?
Whether you decide to manage your investment yourself or not, you will end up spending time and resources finding a property manager or putting together your own team. This is obviously daunting to some, and frankly becomes the reason some folks won’t even start investing in real estate.
We said it at the beginning…investing in real estate is not for the faint of heart. Whether you’re hesitating to invest in real estate due to money concerns, your location, or how you’ll manage or delegate management…do remember that there is reward associated with the risk. If you’d like to sit down and put together an investment strategy, give us a call at 877-472-4842.
Also Check Out: Questions To Ask Before You Flip Your First House