You'll find that many people in real estate would like to start investing at some point. What's holding them back? For some, it's money. For some, it's time. For some, it's that they haven't developed a strategy to know when to jump in or how.
Here are some key considerations when thinking about investment properties.
1) What Is Your Buy Box?
To start, consider what you want to invest in. This can evolve over time, yet it's important to gain some clarity so you know when to jump in the pond.
What type's of properties are you interested in? It could be single-family homes, it could be duplexes, townhomes, condos, etc. Each of these come with different costs, potential maintenance issues, etc. that you'll want to think about. Who is going to mow the yard? Shovel the snow? Are you going to do it? Are you going to ask the tenant to do it? Are you going to hire it out? If your property is part of an association, chances are that some of these items are taken...
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Erick Peterson started in real estate as a solo agent in 2006. He launched a team with Keller Williams and currently serves as Tean Owner and Realtor for that team - Peterson and Co. Together they have closed over 100 units the past 2 years. In addition, Erick owns a pair of duplexes in Wright County, MN as an investor. He also spends his time giving back to others in the industry as a coach and trainer. Erick is an avid hunter, fisherman, and outdoorsman. Erick lives near the family farm where he grew up in Rural Wright County. He has a wife and is a father to three beautiful children.
In this episode, hosted by Mike Swenson, we discussed :
Before I started in the real estate industry, I worked in the non-profit sector. I didn't make a ton of money, yet we served a great cause which kept me moving forward in my career for ten years. I was then introduced to an opportunity in real estate.
Having not been in the industry before, I assumed it was filled with people making money hand over fist and building incredibly large nest eggs to retire early and live a life of financial freedom that I only imagined having spent 10 years in a non-profit.
I quickly learned there are a lot of people doing that. Sales through the roof. Investment properties in a large portfolio. Huge egos. Large incomes.Yet I also learned about a TON of people in real estate that didn't live like that. They tended to fall into 2 main groups.
Group 1: They didn't know when their next paycheck was coming. They couldn't pay their bills. They were scraping by just to be able to afford to stay in the industry hoping their big break would...