But have you thought about everything that will need to happen from now until you've got your first property? Things like: securing funding, finding the right kind of property, location, zoning, your team (yes you will have a team), if you've got a spouse is he or she supportive and "onboard" with your new venture? Have you taken stock of what you don't know and made the effort to learn?
And this is just the tip of the iceburg. If it seems like you're getting involved in a rather large undertaking, you are. Buying investment property is a big decision, and not one to be entered into lightly.
However, there are a few basic tips you can use to make your first time investment property purchase easier.
One of the first things to consider is what type of investment property you want to purchase. Something commercial, a rental unit (duplex, high rise) or are you going to purchase build on the land and then flip the property?
Once you have decided this, the next step is to consider exactly how much risk you can handle. This answer will help you figure out how much of your own money you will feel comfortable investing in your new venture.
Next, once you've decided on how much you can afford, you need to think about outside funding sources. In a perfect world, you'd be able to do it all yourself, but more than likely you will need to secure additional funds. Investment property loans are something to consider. Whether the funding comes from a bank or a private investor, you need to be sure that you understand the terms of the agreement and that both sides understand what they are getting into together. It should go without saying that great credit will significantly reduce any hurdles you may have with getting funding.
Finally, and most importantly, before even thinking of getting into buying investment property, you should have a clear plan of what you want to accomplish, be it passive income from a series of rental properties or buying, fixing and flipping properties on a per case basis. Another thing to consider is how MUCH additional income you would like to make. This will drive your planning process more than anything.
Once you have your plan, stick to it, but make sure you can modify things as you go. You wouldn't go to a new country without planning your route and it is the same with buying investment property. And once you have your plan and everything is set, you need to work it. nothing grand ever came about without some good hard work. Never give up! Once you have set your goal, keep at it until you reach it. Bear these points in mind and soon you will see success beyond your wildest dreams.
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