-Tim Murphy
Dan asked, "I just got laid off from my job. I don't want to back. I see you investing in real estate. I want to do the same. What do I need to know so I can get started?"
Now, this question is a great question that I think a lot of people are asking. Everybody has a good feeling about investing in real estate, and real estate's been a good investment vehicle, right? But how do I get started?
Investing in real estate is something that's a little bit more sophisticated. And it definitely has more risk because you can just get in and just get out. That doesn't mean that anybody can't do it, but here are a few things to consider before thinking about investing in real estate.
Income
If you don't have a job, you better have another way of making money. Or you better have a lot of reserves or OPM, Other People’s Money, to get into your first investment.
Credit Score
Your credit score is going to matter, especially if you're doing residential investing. The bank will look at your credit score. Now, if you're doing commercial investing, which, if it's your first investment, I would think twice about that, your credit score sometimes doesn't matter.
Life Situation
Dan, if you've been laid off, you need to really take that into account because your risk factor is now going up.
Goals With the Property
What are your goals? Are you just buying one property? Do you want to make cash flow? Do you want to flip it and make an income and get a good return on your money?
The Real Estate Market
Is now the right time to make your first investment into real estate? And I would say, coming from me as a 17 year real estate investor, any time's a good time.
Future Goals
We talked about goals with the property, but how about your future goals? Is your future goal to stay in real estate? Is your future goal to have financial independence through real estate? Is your future goal to create a legacy that you can hand off to your kids? What are your goals in general?
Those are some of the things that, if you're serious right now about getting into real estate investing, that you need to think about. If you have questions or need anything obviously, hit me up, or comment below, I'm here to help.
