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Pillars for Real Estate

Knowlege

There’s 5 basic things every new real estate investor should know.

  • Location: How many times have you heard: “Location, Location, Location.” Enough that you’re expecting a dead guy in a black and white striped suit to pop out and hand you a handbook to real estate in the afterlife? Seriously though, a property's location can greatly impact its value and rental potential. Consider factors such as the local job market, school district, and proximity to shopping and entertainment when choosing where to invest.

  • Financing options: Not too many people can just walk into an office and pay cash for a building. And as much as it’s nice to dream about being a part of the 1%, paying cash for expensive purchases isn’t the smartest way to invest your money. What works best for one situation and timeline may not be the optimal solution for all situations. Familiarize yourself with the various financing options available, including conventional loans, hard money loans, and owner financing

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  • Property types: Each property you invest in is going to have it’s own unique sets of benefits and challenges, many of which can be predicted in advance. Consider the type of property you want to invest in, such as single-family homes, multi-family units, or commercial buildings. Each has its own advantages and disadvantages, and it’s important that the pros outweigh the cons for you and your specific needs. 

  • Market conditions: We know, this one can be confusing and complex, but market fluctuations will naturally create better times to buy, and better times to sell. Keep an eye on the real estate market, including local supply and demand, economic trends, and property values. Market conditions can greatly impact the success of your investment.

  • Tax implications: Don’t wait until April 15th to find out how your investment has affected your tax bill. Your accountant and your cardiologist will both thank you for thinking ahead on this one. Real estate investments can have significant tax implications. You can get some basic FAQ’s here. (LINK TO THE TAX IMPLICATIONS PAGE) Always consult with a tax professional to understand how your investments will affect your tax liability, and how you can minimize it. 

 

These are just the basics! Check out this list of considerations if you are getting ready to take the plunge into the world of real estate investments. 

Flexibility

Flexible thinking, planning for all outcomes, and rolling with the punches will be key if you want your real estate investment to work for you. The knowledge we’re providing here are the basics.  As you research and grow your investments, you will find your path to passive income is paved with your own accomplishments. 

 

One of the biggest things that you will need flexibility with is your finances. (I know, that’s why we are looking to make passive income to begin with, right?) Keep in mind that market fluctuations, your own circumstances, and many other factors can change the viability of

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various methods of investing. If you are looking for a primer on different ways you can find the cash or equity to make the right investment for you, we recommend perusing this page before going any further. 

 

Flexibility is one of those things that’s easy to talk about, and much harder to accomplish. The more knowledge you have going into your investment, the better prepared you will be to pivot when the unexpected happens. Flexibility is easiest when you are standing on a solid foundation, and that foundation is the most solid when you combine your own well-researched knowledge with the knowledge, skills, and expertise of those in your community!

Community

If you are ready to start building a rock-solid foundation for passive income in real estate, you are going to need to build a strong, supportive community that you trust to have your back. Here’s some of the people you are going to want in it:

  • A good accountant

  • A good property manager or superintendent

  • Other people who are also investing in real estate

  • A good lawyer

 

Remember, you don’t need to wait until you have all of these people to start! As you build your community, you will get recommendations from other like-minded business people. Networking is key to passive income!

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