Do you want to invest in real estate but are a little worried about doing it right? You’re not alone! The truth is, buying an investment property in Detroit can be scary.
Know these 6 facts first and you’ll be on your way to investing more effectively.
#1. Know Your Numbers
Usually, our fear is high when we don’t understand something. Once you start to analyze properties and become comfortable with calculating your income, expenses, and profit, which will determine your return on investment.
Then you’ll see your fears reduced.
#2. Break Into Parts
Break the process down into parts. It’s easy to feel overwhelmed as you deal with real estate agents, banks, lawyers, your family and friends and everyone involved in the process, especially if you have limited time or budget. By looking at the process in sections, you can set and accomplish mini-goals which move you towards your overall goal of buying an investment property.
#3. Rethink Your Mindset
Remember, everything is difficult until it becomes easy. Think back on new things that you have tried in the past:
- How did you feel?
- What did you do?
- Were you successful or not?
- What would you change in order to have a more positive experience?
Even if those activities have nothing to do with investing, how you approached them and how you managed your thoughts during the process will reveal to you how you approached things in the past and how you can approach things in the future.
#4. Remember The Power Of Control
Realize that you control more when investing in property when compared to other investments. Think of it as an apple tree: You choose how often to water it, fertilize it, prune it, etc. It is a bit more work (than getting your apples from another source), but the rewards pass directly into your hands.
For example, you control how many houses to get, which houses to get, who lives in it, etc.
#5. Work With Professionals
Use experienced professionals – It will cost a little bit more but using home inspectors, realtors, lawyers, and professional tradespeople to buy and fix up your investment property will give you fewer headaches in the long run.
Many investors have horror stories of how using someone with a low price and little experience always ended up costing them money. It is good to be frugal and cautious but not to be cheap.
#6. Have A Mentor
Having a mentor who has invested in the same type of property that you are planning to invest in will help you avoid silly mistakes and will give you more confidence. He or she can normalize the process and reassure you when things get confusing or when you run into unplanned problems.
Their experience will help steady your nerves and may be a major factor in you being wildly successful or just a wannabe investor who buys a few properties but never really has more time to do the things that they want to or becomes financially free.
Ask any investor! Buying an investment property in Detroit can be scary. Know these 6 facts first and you’ll be on your way to a more successful investment.