Real Estate Investing

With mortgage rates continuing to hover around all time lows, many people may be considering now as a great time to purchase an investment property.  This may be true.  I’ll leave that decision up to you.  I would however, like to tell you a few things I’ve learned about investment properties over the years to make sure that if you do decide to embark on that business opportunity, you increase your chances of being successful. 

I’ve learned that many people who purchase an investment property do so because someone pitched them a great “get rich quick” idea.  While it is a potentially lucrative endeavor, there are a few things that you should consider before signing a mortgage.  For example, what skills are required to own a successful investment business?  How do you create a strategy for investing in property?  How does the growth of your business affect that strategy?  These are just a few questions to ask before you get moving on an investment. 

The best advice I can give you is to have a strategy for investing.  Not having a plan is setting yourself up for failure.  I heard a quote once that said, “It pays to plan ahead. It wasn’t raining when Noah built the ark.”  When planning and budgeting, make sure that your loan to value ratio (LTV) is as low as possible.  Typically, if you go over an 80% LTV, your exposure to market trends is magnified.

I bet you didn’t know this, but banks are not the only way to finance an investment deal.  I came across this blog that discusses how to generate private money for real estate investing.  Remember, it’s important to think outside the box when investing in real estate.  You can do what every other person out there is doing, or you can get things done a little differently; possibly a little more efficiently.  Private Money can help leverage your personal cash position when buying property.  It never hurts to use other people’s money to help you gain wealth.

I’ve helped many people with investment properties.  I’ve found people properties to buy within their price range, brokered deals, arranged lending, and provided personal advice.  If you’re considering starting an investment business or want some advice on a decision you’re about to make for your current business, I’d love to help you out in any way that I can.  At the very least, I may be able to get you connected with someone who has experienced years of success in real estate investing.  Post to this blog and let me know what I can do to help.  Post your questions or comments as well!