Not everyone’s cut out for becoming an investor, and that’s okay. However, if you’re interested in the role, then there are a few questions you should be prepared to ask yourself before diving in. This isn’t a project you want to go into blindly or plan on winging.
You’re talking about your hard-earned money when it comes to investing in a property. Make sure you go about it the right way, so you’re comfortable when it comes time to close the deal. It’s smart to sit down and go over this list of questions to prepare yourself for this adventure and put yourself in the best position possible for getting a return on your investment.
Have I done my homework & compared options?
It’s not a great idea to jump at the first offer without doing your homework and comparing what else is out there. Take time to think through what you want and are looking for before you decide to purchase a property because you like it initially. Research, read and do your due diligence as you go through the process of investing in real estate. Come up with a pros and cons list and tour a lot of kinds of properties so you can compare what’s out there on paper. Otherwise, you may go through with a deal and later regret your decision because it wasn’t the best option.
Am I getting a good price?
You should set a budget ahead of time that spells out about how much you want to and can spend on a property. Know when you’re getting a good price and be able to pinpoint situations where someone’s trying to rip you off. You should be protective of your money and go into your search knowing what properties are in your budget and the ones you should stay away from. This is another reason you want to be studying your options ahead of time and knowing what areas are affordable in your case. You need to have your emotions in check, so you don’t take a deal on a whim and spend more money than you planned going into this type of situation.
Is the property in a prime location?
Location is very important when it comes to you renting or selling your property. Take this into consideration as you look around and price out various homes. For example, work with other investors and a company like Myrtle Beach Home Buyers to ensure you’re getting properties in the best locations. These homeowners are ready to sell and are looking to get the property off their hands quickly. You can’t go wrong when you own a place on Myrtle Beach where the weather is warm, and you’re just steps from the beautiful sand and water. In addition to being near a beach, check out if there are other attractions nearby like shopping malls, grocery stores, and parks.
Did I consult with the right people?
Although this is ultimately your decision and money, it’s a good idea to take time to consult with the right people before committing to a property. Speak with your spouse and family about what you’re getting into and make sure they’re onboard. Also, if you have a business partner, you’ll need to work together to come to a joint conclusion. Another idea is to find an investment mentor who has been through this before and knows what to look for when searching for a property to put money into. You may also need to work with contractors or real estate agents after the deal goes through so have a few names and numbers handy for when you’re ready to use their services. It’s smart to get recommendations if you want to feel more comfortable when dealing with these people and putting your trust in them to do what’s best for you and your property.
Do I have time to commit myself to this project?
Investing in a property isn’t a task you pick up and put down whenever you choose. It’s a commitment and requires your full attention if you want to be successful. Understand how much extra work you may need to put into your property to make it more valuable and attractive to renters or buyers. You’re going to need to get your property ready for rent or to flip and sell it and should know what that all entails before you move forward with the transaction. If you have a full-time job besides investing, then you’re going to have to understand that you may be working a lot of extra hours for a while before you can get your new project under control. This endeavor may require you to miss family events or time spent with your friends if you already have a busy schedule.
Do I have an exit strategy & backup plan?
It’s possible you end up finding out you dislike being a property investor and want to back out of the deal. Read the fine print and know your options before signing the papers and fully committing to this investment. Be prepared and know what you’re going to do if you realise this is no longer a project you want on your plate. Have a good idea of what you’re going to do with the property before you agree to buy it, especially if you’re a first-time property investor. For example, think about if you plan to flip and sell it or keep it as a rental property. Make sure you have enough time and money in the bank if the situation doesn’t play out as you had originally planned. The point is to look out for you first and go into your deal knowing exactly what your future plans are and what you’ll do if it doesn’t work out.
These are a few important questions to ask yourself before you move forward with investing in a property. This is a big commitment and will require a lot of your time and energy, so make sure it’s truly a project you want to take on before fully getting onboard. If it is, then have fun and enjoy the ride as you learn and grow through the process.