Questions To Ask Yourself Before Investing In Real Estate
As today’s real estate market continues to gain in strength, profitable investment opportunities in turnkey rentals abound at MartelTurnkey. Because of this, you may have decided to finally take the plunge and become a serious real estate investor. But since you want your hard-earned money to give you returns and grow in value year after year, you’ll want to take a look at the many factors to consider, such as whether you want to invest in single family turnkey rentals or duplexes, where you want to invest, what your expectations are and which company you should work with. Before jumping into the real estate investment game, ask yourself the following important questions so that you’ll be better poised for success.
What are Your Investment Goals?
While the obvious answer to this question is to make money, no two investors are exactly alike. Therefore, always carefully examine your main real estate investment goals. For example, if monthly cash flow is your goal, a turnkey rental income property would be your best option. Are you looking to buy property in a certain market? If so, make sure whichever company you work with offers properties in that region. However, be sure to choose your market based on economic indices and not emotions. Your hometown might always hold a special place in your heart, but that doesn’t necessarily make it a profitable market in which to invest in turnkey rentals. Align your investment goals with your decisions so that you can be sure you’re on the right path for you and your family.
Do You Want an Active or Passive Investment Experience?
Once you establish your goals, you should then move on to deciding if you prefer to be an active or passive real estate investor. Should you be a person who already has plenty of personal and professional responsibilities, you will likely want to focus on passive investment opportunities. In this case, turnkey rentals are ideal. However, if you are a person who has plenty of free time, wants to be involved with every detail of your investment properties, and likes being hands-on from day one, you might be happier with active real estate investments such as fix and flips, or BRRRRs.
What Resources Do You Have for Investing?
While you’re of course excited about your real estate investment adventure, you also need to be practical and know the resources that are available to you. As an example, if you decide to invest in fix and flip single-family rentals located outside of where you live, make sure you have the resources needed to scout out neighborhoods, hire workers, and take care of the many other details required to make such an investment profitable. If money is your primary resource and time is scarce, you will likely be more suited to the turnkey rental experience, where you can go about your own life while others take care of your investment concerns.
How Much Liquidity Will You Need?
In many cases, investors fail to take into account exactly how much liquidity they will need. If you do the same, you could experience an unexpected cash crunch. If you have a limited amount of money to use for your real estate investments, consider finding ways to increase your investment funds or look to more affordable options. Our turnkey rentals are available for a standard 20% down, but that amount can start as low as $25,000. If you have less right now, contact us and we can help you by putting you on the VIP mailing list and letting you know as soon as something becomes available in your price range. When you buy a turnkey rental from MartelTurnkey, you get a property that’s been fully renovated, so it’s highly unlikely you’ll need to spend any more than your down payment for the foreseeable future.
What’s Your Risk Tolerance?
Risk tolerance is typically determined by such things as age, financial position, and your goals. For younger investors, higher-risk investments are considered safer and preferred, while older individuals planning for retirement may be better suited for steady, low-risk investments. Real estate in general is considered to be highly stable as an investment. Turnkey rentals are also very conventional, stable investments. If you’re interested in doing your own fix and flips, you’ll take on more risk, incur more expenses and spend time as well as money. In return, you may get a higher rate of return, but only if you’re able to sell in a timely manner and at a profit. Those are risks that not everyone is willing to take.
How is the Current Market?
To be a truly smart investor, carefully examine the current market conditions. If there is one thing you don’t want to do, it is to go against the market. By following the latest trends that seem to be favoring certain types of investments, you can formulate a strategy that will bring your investment goals to fruition. Right now, real estate remains one of the most lucrative investments. Home prices are rising, but interest rates are still very low. If you’ve been on the fence about taking the leap, now’s the time to act.
Which Real Estate Investment Company Will You Work With?
Finally, before you go all-in on your real estate investing, carefully vet any investment company with whom you’re considering doing business. As we’ve written about before, not all turnkey rental companies are the same. MartelTurnkey is a family business with a solid reputation, and we have numerous references and testimonials to prove it. Of course, we hope you work with us. If you have any questions about us, the way we do business or any of our properties, please don’t hesitate to contact us. You’ll speak with a real member of our team; we don’t outsource to some call center, and we don’t try to keep our conversations as brief as possible. As long as you have questions, we’ve got the time to answer them.
Since many people around the world have made their fortunes through real estate investing, there’s no reason to think you can’t do the same. By asking yourself these questions beforehand and giving yourself honest answers to each question, your real estate investment adventure can begin!