Thinking about buying an investment property? Sound Move! However, if you haven’t bought a lot of properties before, you may not be sure how to invest in the right away. To help you, I have created a list of 3 questions to ask before buying your first investment around the Charlotte area …
When buying your first investment, there are exciting emotions that build up to the moment that you open the door that first time. The internal questions will exist along withe the fear and possible anxiety?
Some of these can be removed in answering these 3 questions to ask before buying your first investment in Charlotte area…
Question #1. Have I asked the right questions and done my homework correctly?
Doing your homework means making sure that this is a good investment compared to other options.
You have probably heard or read that the key to success is to, “look at 100 properties, put in offers on 10, buy two or three”. Too often beginner investors get hyped up, rush out with a real estate agent, looking at 4-5 properties, and buying one of them. While soliciting the help of a Realtor is smart, make sure they are experienced with investment property and have knowledge based on your goals. ( buy and hold, flip etc.)
You don’t need to look at 100 properties if you solicit the help of a good wholesaler will do a lot of that for you but you should still learn how to analyze the numbers so that you are comfortable and confident with your investment choices.
Question #2. Is the timing right for me?
Is the timing right for you right now or do you need to rearrange your money so you can invest when you’re ready?
Many beginners buy a property but they haven’t thought through their current financial situation, their ability to add another activity to their schedule, nor their current life stage. If you don’t know your own financial situation, you may struggle and worry way more than necessary.
Preparation and knowledge always trump hope when you are looking to buy your first property. Figure out your timing and you’ll save yourself the stress and actually accelerate your path to financial freedom.
Question #3. Will this investment take me closer to my goal of financial freedom?
Most people find an investment property that will pay them several hundred dollars a month and they get excited about the cash flow but they lose sight of the steps involved in achieving financial freedom. You need to think about funds in reserves. Many an investor lost a lot when this key step is ignored. Be PREPARED!
Think about what your current expenses are and make it your first goal to acquiring enough properties to cover your current expenses. Solicit the help of a Realtor/Wholesaler with experience to help mitigate potential and analyze everything!