Posted on: 10 December 2020
Investing in apartments can be a great way to earn money. You earn money each month when your renters pay their rent, and you can also earn more money when you one day sell the apartments and recoup your equity in cash. However, investing in apartments is not easy. If you are a complete beginner and just looking to get started, here are some tips that will benefit you.
1. Find an advisor.
As someone who is completely new to the real estate investing world, it is important to have an advisor in your corner. This can be a formal arrangement in which you pay an advisor to meet with you once a month and go over things, or it can be more of an informal situation in which you call up a mentor when you're not sure how to handle a situation. If you know someone personally who has invested in real estate for years with success, just call them up and ask if they'd be willing to mentor you. If you do not know someone with this background, then look around for advisors in your area, interview a few of them, and hire someone to advise you.
2. Make location a priority.
As a beginner real estate investor, you're going to be doing a lot of the work yourself. As such, location is key when buying your first apartments. You do not want to buy a building an hour from your home — no matter how good of a deal it is! You'll spend so much time commuting back and forth that what you earn won't be worth your time. Look for an apartment that's a short drive away, and as you buy more apartments, make sure they're close to each other. Successful real estate investors have to manage their time well, and having to drive too much will really make that difficult.
3. When possible, opt for lower maintenance.
You probably won't be buying the nicest, newest apartment buildings as a new investor. But you do not want to buy buildings that are in disrepair and that will require tons of updates and maintenance, either. This can quickly eat away at any profits you stand to make. Before you buy an apartment building, have it fully inspected. Pay special attention to any issues with the roof, HVAC system, plumbing, and foundation, as those tend to be the most destructive and costly to repair. You generally want to buy something that may be cosmetically lacking, but that has "good bones."
With the tips above, your experience investing in apartments can be a good one. Start small, rely on your advisor for advice, and work your way up over time. For more information on apartment investing, speak with an experienced real estate agent.Share