Property Management Blog

Things to Know Before Buying Your First Rental Property

Terry Mrochko - Wednesday, August 21, 2019
Property Management Blog

If you have been in the real estate business for a decade, you will know many tips and tricks that would have helped you if you had known them in the past. Ask any real estate person, who has been in the business for as long as 15 years, what will they change if they can go back? There will be so many changes; well, here are some tips that will help you get the best out of your first rental property.

Don’t Pay Too Much

Well, since it’s your first rodeo, you might end up paying more than you should. This is because many people don’t know the ropes and they don’t know what they should be doing. So, don’t let anything blind you enough to fool you with a high price. You get experience when you try stuff, but knowledge isn’t like that; gain as much knowledge as you can. Join local Real Estate Investment Association (REIA), and it will help you understand real estate better. There is so much information available on the internet in forms of blogs and forums. Soak it all up, and you will understand a lot.

The lesson to learn is, do not rush your buy. Do your research first then take the leap of faith.

Hire Help

Starting afresh mean you have no experience and no help. Being a novice doesn’t mean you can’t get help. When you buy your rental property, you think about saving a buck and doing everything yourself, that’s a good thought, but if you exhaust all your energy on this, you will sidetrack your business.  Hire people to do your work as much as you can; this will help you clear your schedule and concentrate on business.

Investing Is Business

Understand that this isn’t just one-time investment, take this as a business, grow it as a business, and work on it as if you are working on your business. You aren’t just a landlord, but a businessman. Like in any business, you will have to study this as well. You may think that buying rental properties may make you a landlord, but that’s not it. It makes you a businessman; as soon as you accept this, you will be able to grow this bigger. Once you take yourself out of being a landlord, you will be able to mature as a businessman.

Buying More

Buying more is a great idea when you know the market is down and you are getting cheaper rates. You can do well in the future with these gold mines if you buy them in cheaper rates now. Doing smart business is to know when to strike.  Buying when the rates are cheaper, and the market has less competition. As soon as you get your feet wet and gain a bit of experience, but as much as you can in cheap rates. Real estate business is one that when goes to boom, will give you hefty profit and steady income.

The lesson to be learned is that you should always buy and wait, never in real estate should you wait to buy. It’s always the other way around with real estate business.

Knowing real estate is a learning process that never stops, there is much you can change if you learn from other people’s mistake. Hire people to do the mundane work and focus on your business more. Take risks and buy more; this will help you expand quicker. Lastly, make sure you understand the fact that this is your business, and that makes you a businessman and not a landlord.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty. 

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