So many times we see people jumping into investing without a plan. Doing this can have significant consequences, so we came up with 5 questions you should consider before starting your investing business.
Need Money Today or Money for the Future? The answer to this questions helps you determine your real estate strategy, how you will hold title to your property, and guide you to selecting the best investments that meets your objectives.
What is Your Risk Tolerance?By understanding your risk tolerance, helps guide you to how much exposure you can take, how deep your margins need to be, etc.
Do you Have a Team of Professionals?The real estate investing business is not something that can be done alone. It requires many people to have a successful real estate investing business. Find team members that can compliment your skills.
How Much Money Do You Have?This is a business. As such, it requires funding. The days of no money real estate investing are gone. While you can still get creative, we believe that you need to have some funds to be successful, (doesn’t necessarily have to be your liquid cash, but you need access to funds) just like any other business.
Do You Understand The Market You are Investing in?You need to either have a basic understanding of the real estate market or hire a real estate professional who can guide you to the best areas for investing. You make your money when you purchase the property. This can only be done successfully, when you understand about the market.