Written by Laura Quick, REVA- Exclusive 25th Hour
It’s been said a thousand times, “Investing in Real Estate is not for everyone.” As a real estate agent and investor, I can attest to many times that I have pondered over making the right decisions. I will expound on a few of those as well as some of the advantages of investing as an agent or non-agent. You don’t need to be rich, but you do need to have a firm grasp on your finances. You will need to do research of rentals, prices and trends. If you are an agent this is not difficult to do. In fact, it becomes part of the daily knowledge you acquire, often with little effort. This is not a “get rich quick” scheme, and the investment can span very long lengths of time with many highs and many lows.
When deciding to invest in real estate as a Realtor, here are a few items to consider:
- Educate yourself: Take the time to evaluate the type of portfolio you would like to have, especially as a realtor working with potential investors. This is a great way to show them the numbers if they are thinking of pursuing this passion.
- Think it through: Decide what kind of property suits you, whether it’s a fix-and-flip or rehab-and-rent project. Weigh the good, the bad, and the realistic with all options. Evaluate the risks, the neighborhoods, the type of strategy that best fits your needs, the vacancy rates, all the expenses involved, how will you finance and who will manage your property.
- Make a plan and pull the trigger: Implement a plan on how you get from point A to point B, don’t just jump in without a strategy. This is a very important step in the process.
- Other things to consider: How to gain leverage, increased cash flow, tax deductions, retirement and strategy plans for savings and other investments. All these are valuable tools to help evaluate if you think having an investment property is a viable option for you.