There are two kinds of investors: those who make a high return on investment, and those who make a low return on investment. It’s important that you realize the importance of making a high return, and identify exactly how to make a high return on your rental property.
When I mention that I purchase properties in the $40-50k range, sometimes people respond, “You’re so lucky! Homes in my area are over $200k!” But the thing is, I don’t invest in my home state of New Jersey.
You might think that investing is only about the numbers, but in order to grow your portfolio, you’ll need to put on your thinking hat and be creative!
Undoubtedly, you will meet naysayers on your real estate journey. You will encounter people who are quick to tell you that you're going to fail, that real estate is a terrible investment.
Before you purchase a rental property, you should thoroughly assess not only the property, but also the neighborhood and the market. One thing to consider is the possibility of natural disasters, including if the home is located in a flood zone.
If your credit score is less than stellar, you’re not automatically disqualified from investing in real estate. Sure, you might have to get creative and figure out how to get funding, but it is possible!
Hopefully you and your spouse see eye-to-eye when it comes to most important decisions. But if you disagree about the best methods for investing, you're not alone.
Although you might think the topic of leases is rudimentary, having an accurate lease is an important part of any rental property investing business. If you want to create passive income and cash flow, there are certain mechanisms you'll want to have in place.
