One of the most important steps in real estate investing is preparation. Before approaching the market, there are several things you will want to make sure and cover.
- Meet with your Accountant or CPA. Your accountant will have your best interests in mind, and have access to your portfolio. With your accountant you can discuss the long term benefits and effects of real estate depreciation, principle reduction and increases in value to to appreciation. They will also help your real estate investments balance with your other portfolio items. Your accountant will be a great asset to your real estate investment preparation!
- Read a few real estate investment books. The great part about literature is learning from other people’s triumphs and mistakes. When you read someones book you have the opportunity to take advantage of their wisdom and experience. The more knowledge and preparation you have before investing in real estate, the better! There are many different books written for real estate investors. If you are just starting out or are a seasoned investor, you will be able to find the perfect book.
- Search your local available properties. After you have a basic understanding of how real estate investing works, you should start looking for specific properties in your market. The process is similar to buying stocks where you check the results against your current investment strategies. You should take advantage of online resources like Realtor.com, Zillow.com, and my website as well. Do keep in mind that some online resources (namely Zillow and Trulia) are notorious for having poor information! When you have checked several properties, you will start to become more familiar with your particular market and the investment opportunities available.
- Find the Perfect Realtor. Having done your research and preparation, you will need to find the perfect Realtor. A Realtor will be able to help find the perfect investment property. When doing you research make sure they make you comfortable, and have investment experience. Your Realtor needs to be able to show you properties and offer valuable insights into market trends, rental rates, and other potentially unlisted properties! If you choose to work with me, I also have several investment properties which gives me a unique insight into our local market. When we work together I will bring my years of experience, lenders, inspectors, appraisers, and the lot to your real estate deal!
Talk Soon. This is heating up
~ Chris Clark