How to Get Started In Real Estate
Investing in real estate requires dedication and perseverance. A common trait among many successful real estate market investors is the willingness to endure some rough patches in order to achieve maximum success. Investing in real estate is not a sprint, but a marathon. If you see the potential returns at the end of the marathon as motivation to enter the real estate race, we at Memphis Cashflow are happy to assist you in whatever ways necessary. We know that getting started in real estate investing can be daunting, so we hope that these steps are helpful. in your journey.
Step 1: Examine Your Resources
Before making a decision, most people look at what the task at hand requires and assess the resources at their disposal. Likewise, entering the Memphis real estate investment market demands access to the proper resources, like capital. That may sound like a no-brainer, but we want to be sure you understand its importance. As you search for your first investment, be sure you have adequate capital in hand. Without it, you're putting yourself in a hole before you even get started.
Real estate investing also requires excellent credit. Good credit goes a long way with a bank when applying for a loan — the better score you have, the better your financing terms will be. So, before you start investing in Memphis, be sure to check your credit score and handle any monetary disputes.
Step 2: Consider Your Market
It's crucial to take a good, honest look at the real estate market you're considering investing in. We believe that Memphis provides substantial investment opportunities and room for growth, but each investor sees a market through unique lenses. If the market’s dynamics are attractive to you, take the next step. However, if you feel hesitant about making the jump into real estate investing in Memphis, you may want to explore other opportunities. Never invest in something you feel will not create adequate returns!
READ MORE: 2020 Guide to the Memphis Real Estate Investment Market
Step 3: Make Your Move
Once you feel confident about the Memphis real estate investment market, start looking for properties! As you begin your search, really put thought into and research the investment properties you consider. Sure, cheap houses will always exist — but, will quality tenants want to live there? Always keep an eye out for areas where you see quality tenants desiring to live, as good tenants make the process of managing an investment property much less stressful.
After you find a property you want to invest in, run the numbers. Acquisitions require a multitude of steps, and the process is especially daunting when you have never done it before. Remember to be conservative and realistic with your budget, don't be afraid to reach out to our experts, and be patient. You'll be investing in Memphis in no time!
Step 4: Construct a Cash Flow
Once you have the acquisition in hand and have ownership of the property, you need to set up a process to build cash flow and get rid of those mortgages. Patience is critical, as proper planning and execution can fend off years of mortgage and stress. After you analyze your cash flow and create a payment plan, your mortgage will slowly decrease until you're turning a profit. Congrats! The additional cash flow earned from real estate investing will allow you to save more, take fun trips, and can even be a huge help when it's time for you to retire.
Need Help Getting Started?
Are you interested in entering the Memphis real estate investing industry? We would be happy to help you get started. Contact us to get started as a real estate investor! We will go over all of your options, as well as answer any questions you may have.