Real Estate Investment – A Guide for Beginners
Investing in real estate is not for everyone. Many people end up making investments that end up costing them thousands in losses and makes it difficult for them to keep their savings up to the mark. Adam Morris is a reputable investor who owns Copperblock Capital Inc., a real estate investment firm in Canada. He owns multiple projects throughout North America and has established himself as one of the leading real estate development experts in the industry. Here is a brief guide for beginners to follow when it comes to investing in real estate.
Tip Number One
What is the motivation behind your decision to invest? Do you want to live in it? Are you looking for an additional income? Is it for your own retirement? You want to leave it to your children? It's fundamental to first find out your motivation behind the investment before making a decision.
Tip Number Two
Know your investment potential, that is, before you start, get pre-approved to know how much you can invest. Is the job stable and will you keep it in the future? It's important to know your true investor potential, so when it is time to shop around, you already know which investments to turn to. Determine your target in relation to your means.
Tip Number Three
Build a strong team and surround yourself with professionals because you cannot know everything, manage everything, and know everything. You need a well-vetted team to support your business. For instance, you need to have an experienced tax lawyer who can guide you about the tax implications of your investments.
Your tax lawyer will not recommend embarking on the adventure of solo real estate investing. Also, have a good mortgage broker to shop for the best rates. Finally, also have a building inspector in your team to ensure that you purchase the cleanest properties.
In short, know professionals for each trade. According to experts, it is important that you surround yourself with experienced professionals from each field so they can guide you through the investment process.
Tip Number Four
You need to be able to quickly understand some key indicators, so you always understand the situation and what the property is worth. You must be able to inspect the property closely and then determine its actual value. While it’s good to have a building inspector in your team, you should know how to evaluate properties by yourself as well in order to form independent opinions.