If you're considering purchasing your first investment property, it can be tough to know where to begin. Investment properties offer tons of room for financial gain and community growth if done the right way. The expert broker team at Howell Investment Finance in Ames, IA, is thoroughly experienced in this kind of business endeavor; they work with commercial properties such as apartment buildings, offices, and senior housing, on a regular basis. Here, they explain how to get started.

How to Get Started With Investment Properties

1. Determine Your Wants & Needs

Look at your entire financial picture and long-term goals to really see what you are able to do in the investment industry. Do you want to get involved in senior housing? Maybe an apartment complex is more ideal, or, perhaps you want to flip an old office building. Once you decide your wants and needs, you can better understand what lender options are available to you and which routes you can take.

2. Understand the Cash Potential

Depending on the current market and your ability to do the work, you can evaluate what the potential cash flow could be. If you have the resources to do some construction yourself, it can decrease your upfront costs of flipping a space. Sometimes you'll need to rent out some spaces of a total property or move in to cover some of the costs while you focus on the updates. Each area's market is different, so be sure to look at what is already in the area and what could be desired, such as an apartment complex in a college community. 

3. Speak With a Finance Team

Once you have an idea of what you want your first investment properties to be, it's time to talk to the financing professionals. They'll better help you understand what lending options are available and break down everything from Fannie Mae and Freddie Mac loans to the average apartment mortgages in the area. This will guide you in determining the best borrowing options to jump-start your investment endeavors. 

If you're interested in learning more about investment properties and what's available in the community, talk with a broker at Howell Investment Finance in Ames, IA, today. Whether you want information on how to get senior housing financing or are interested in construction loans, the team can help you navigate the investment process. To learn more about their services, visit them online or call (515) 233-8228 to talk with a broker today.