REAL ESTATE INVESTING:
Real estate investing has served as the catalyst to living the “American Dream” and retiring early for many centuries. Both young and old are looking for the smartest ways to invest and put their money to work for them. One industry that has always been on top of most new and seasoned investors’ lists, is real estate. Now the question is, why are up and coming investors jumping on the real estate bandwagon? The reason is that real estate investing offers high ROI if you know how to decipher a good opportunity from a bad one, a good market from a bad market, how to do “real estate math”, and how to effectively navigate the buying process. Having a weak knowledge of the real estate business can be disastrous for any investor.
Forget what gurus might have told you, real estate is not for the soft-hearted. Yes, it is rewarding, but you must be up to the task through hard work and financial commitment. If you are determined to ditch the 9 -5 job for something more ambitious and worthwhile, real estate investing can be your ultimate passive income generator. To excel in the real estate market, you would need a great deal of financial preparation, planning, and intelligent choices. Whether you are already an investor or you’re just trying real estate investing for your early retirement plan, here are four tips that will insulate your investments against possible losses and accelerate your success.
Set Your Investment Goals
Real estate investing requires setting the goals and objectives you desire to achieve. Without a vision, the journey can be overwhelming, and you will eventually burn out. However, if real estate investing is your choice for an early retirement plan, the first thing you want to do is to figure out how much income you will need to generate to sustain your lifestyle. We call this, your “Financial Freedom Number.”
In estimating these figures, many factors have to be considered:
These factors will help you determine the ideal rental real estate property for you. Having the actual number of what needs to be sorted monthly or regularly can help you analyze a sustainable income that your rental real estate will have to generate to keep your retirement active and smooth.
Find the Right Rental Properties
As stated above, real estate can be very tricky, and the part where it gets even risky is when you are at the point of choosing a rental real estate property. This is where most investors fail even before the journey begins. At this point, you must be sure of what the future hold for the region or city you chose to invest in. Some cities might look like they are thriving at the moment and not look the same in the years to come, while others are currently not in demand and can be a business hub in the near future. So when finding the right property for your real estate investing, in-depth knowledge of strong housing markets is highly essential. You have to focus on finding and choosing rental properties in strong economic markets that have performed well historically and can potentially provide you with a higher return on your investment. You have to be mindful of the 3 factors that will make or break your real estate investing plan and success which include:
By following and strategically implementing these steps, it will assure your peace of mind in the long run by stabilizing your investment and providing you with a source of consistent monthly income where the hard-earned money you’ve been disciplined enough to save up is now paying it forward and working hard for you.
Evaluate Your Tenants
Another tip for early retirement using real estate investing is scrutinizing your tenants and ensuring proper selection. Before placing just any tenant into your rental real estate property, you want to make sure your price is fair and be sure prospective tenants can afford to pay their rent on time and in full, every month. The ultimate goal of every rental real estate investor is to make money, therefore you must vet all prospects to pick the right tenants that can fuel your goals. Additionally, choosing a decent tenant should also be on your priority list if you want to keep your retirement active and flourishing. When dealing with bad tenants, keep in mind that this is your business, not just an investment, so do not hesitate to take appropriate legal actions to sort out any chaos that can detriment your investment.
Hire a Real Estate Manager
Depending on the size of the business, self-managing your rental property gives you proper accountability and control so you can focus on automating and scaling. However, hiring a professional property manager is what smart real estate investors use to optimize their real estate investing and maximize profitability. This step requires working with an experienced property manager with a proven track record of implementing sustainable growth and ensuring high returns on rental real estate property investments for their clients, ideally pre-crash of 2007, during the crash, as well as post-crash. There are tons of property managers out there, but you want to be sure to find yourself a professional who is honest with a work approach that aligns perfectly with your vision.
Real estate investing is the best, most lucrative way for new and seasoned investors to marry their current finances with their future retirement plan to build long term, generational wealth. To succeed, you need to give it time and a whole lot of commitment to build wealth and generate passive income to support your retirement and/ or passive income goals. If you follow this guide as your starting point, you will definitely be starting on the right foot forward. Remember, never sacrifice quality, for quantity when building, expanding, or diversifying your portfolio.
Download our free e-book here at https://www.imperiumenterprise.com/buy-a-home/ to learn more about real estate investing. Discover how to secure your future and retire early in life using real estate investing as your vehicle.