Learn more about the most common obstacles that first-time real estate investors face
Real estate offers a variety of profitable investment options, but as a first-time real estate investor it can be hard to know where to start.
To become a successful real estate investor, it’s important to acknowledge and tackle any potential obstacles that may stand in your way. Keep reading as we explore the biggest barriers to investing in real estate, and how you can overcome them.
Barrier #1: Lack of experience
Because there are so many options when it comes to investing in real estate, it can seem very overwhelming at first.
The solution: Your first step should be to learn the fundamentals of the real estate market. There are many resources available to help you learn the basics, including books, blogs, webinars, and even mentors.
Next, you should identify which investment strategy best fits your long-term goals. Begin to pay close attention to credit and lending cycles and you’ll know when the time’s right to strike.
Barrier #2: Limiting your search
If you’re struggling to find the ideal investment opportunity, it might be because you’re limiting your search too much.
The solution: If you’re focusing on a specific physical area because of familiarity, try broadening your radius and see if you find other properties of interest. If you’re unsure, consider working with an experienced real estate advisor who has local market knowledge of your new search area.
Barrier #3: Concerns about vacancies
Many first-time investors worry about the future profitability of their real estate asset. And while rental market conditions are impossible to predict, there are several things you can do to reduce the risk of delinquencies and vacancies.
The solution: Information about current tenants will be available to you as part of the due diligence package provided by the seller. Study everything to learn if the current renter profiles fit with your investment goals. For more advice, read our blog on how to reduce delinquencies and vacancies.
Barrier #4: You don’t have time to manage the property
Along with the financial outlay, managing a real estate property yourself can involve a huge investment of time.
The solution: Hiring a professional property management company will not only save you time, but also a lot of headaches. It can seem expensive, but dealing with even the best tenants can be challenging at times—so it’s often worth paying for someone to take this responsibility off your hands. Our advice: factor in this additional cost from the start, so you can see the big picture when you’re making offers on investment properties.
Want to learn more?
Read our previous blog for more advice on how to find the right investment opportunity.
If you’re ready to make your first real estate investment, the team at 100Units.com is ready to help. As experienced multifamily investment advisors, we’re committed to providing the insight and advice you need to secure the best real estate investment property. Contact us to learn more.