Real Estate Investing Assessment

If you are new to real estate investing, here are some questions to consider in advance.
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1. Investment Goal

What is the main purpose of your investment?

What is your target return on the investment?

How long do you have to wait for the return?

2. Assess Current Finances

How much capital do you have to invest in the real property?

How much capital do you have for on-going expenses?

Will you need to secure outside financing?

3. Determine Financing Strategy

Do you have the ability to finance the project?

Do you plan to obtain outside financing?

Will this be a solo project or something you do with one or more partners? 

4. Decide What to Buy

What type of real estate investment are you interested in? A second home? 

A rental property—for long term tenants or short-term rentals? 

A “fix and flip” project? Land?

5. Choose the Right Real Estate Agent

Does the agent have experience with my planned investment choice?

Does the agent have knowledge of my target areas?

Can the agent provide additional resources to make my investment a success? i.e., Lenders, General Contractors, Stagers, Builders

Will the agent help me evaluate my options and provide financial data to assist me in my decision?

6. Mitigate Risks

Is your overall plan reasonable in terms of income, capital gains, and/or appreciation?

What is the riskiest part of your plan?

Are your financing assumptions reasonable?

Which parts of your plan could shift and create financial hardship or loss?

Are you being reasonable about your capabilities and your limits? i.e., if you’re interested in a project, do you have reasonable contacts to do the work, or are you capable of doing the work yourself?

Have you considered worst-case scenarios in case your plan does not go as intended?

7. Take Action

Once you’ve asked all the right questions, done your homework, and gotten the right team and financing in place, it’s now time to execute with confidence.

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Contact the Team with MORE to help make your investment dreams a reality. Our Team has over twenty years of experience helping people invest in real estate in the Valley of the Sun.