Share:

Investing in real estate is an effective way to grow your net worth. In fact, when it comes to financial planning, buying property is one of the only goals that virtually everyone shares. Even though real estate is a comparatively low-risk investment, it’s not foolproof. Before you run out and buy your first—or second or tenth—property, consider the following tips. 

Do:

Treat it like a business. 

It’s essential that you treat your career in real estate as a business from day one. That means keeping accurate books and purchasing sufficient liability coverage. It also means taking an objective approach to finding each property. If you let emotions get involved, you’ll be inclined to overspend because personal preferences will override financial viability. 

Start small.  

You might be eager to build a vast real estate empire and see your financial planning goals come to fruition, but do so at a gradual pace. Spreading yourself too thin is a recipe for trouble when it comes to investment properties. For example, do not purchase a second home until your first one is making money. 

Don’t:

Go in blind. 

financial planningNowadays, there’s no excuse for going into real estate investing with little knowledge on the subject; the internet alone has a wealth of free information. Along with reading articles and watching videos about it though, it’s wise to talk to someone who actually owns investment property in your area. They can offer valuable insight into what it means to be a landlord in that particular market. 

Buy properties just because you should. 

You might find a gem at a low price, but if you don’t actually want to manage a home in that part of town, buying it is not a sound investment. Being a landlord is a lot of work, and unless you’re genuinely excited about renting a particular property, it won’t be worth the income you make from doing so. 

 

Whether you’re ready to invest in real estate today or you dream of buying duplexes tomorrow, turn to Christina Mendoza & Associates LLC Insurance and Financial Services for help with financial planning. A licensed insurance agent, Mendoza helps clients throughout Bexar County, TX, implement strategies that allow them to reach their short- and long-term goals. She has more than a decade of experience in retirement planning and undergoes continuous training so she can remain a leader in the field. To schedule your first financial planning meeting, call (210) 389-5289 or fill out the form on her website

tracking