As with any goal, deciding that you want to invest in real estate is half the battle. But once you’ve made the decision to jump into the real estate investment game, you should make sure that you’re doing everything you can to be as successful as possible. After all, there’s no point in investing your hard earned money only to have insignificant returns or - even worse - lose money.
1. Determine Your Goals
The very first step to kickstarting your real estate investment future might seem obvious, but it’s still important - you need to determine what your goals are. Are you relatively young and hoping to build a nest egg for your family? Are you looking to invest aggressively to create a continuous income stream to supplement - or replace - your current income stream? Are you hoping that said continuous income stream will be enough to sustain you throughout your retirement years and allow you to live the lifestyle to which you’re already accustomed? Perhaps you’re just hoping to get involved in investing to build your wealth to a point where you never need to worry about money, even if you have no plans to stop working or retire anytime soon. Deciding what your goal is now, and what you hope to achieve in the future, will help you determine how aggressive you should be with your investment strategy.
2. Do Your Due Diligence
Once you’ve decided what your real estate investment goal is, the next step is to make sure you’re working with an investment partner that will actually help you to achieve it. If you’ve decided to become an active investor - i.e.: a landlord or developer - you’re going to want to surround yourself with a group of people who will do work on your properties, or help you manage them, at a fair and reasonable rate. If you’ve decided to go the passive investing route, that is investing your money into a fund that then backs other projects without you having to lift a finger (doesn’t that sound divine?), you’ll want to make sure that the investment company you’ve chosen not only has a history of strong returns, but that they also truly know the market.
3. Set Aside Your Year-End Bonus
You’ve set your goals, you’ve done your research - now it’s time to actually jump in and invest. To be clear, we know that some people don’t get a year-end bonus, or that devoting the entirety of said bonus to an investment might not be practical for everyone; therefore, we recommend that you determine the amount of money you’d like to start off investing. For many people, once they’ve purchased a home, they set their sights on saving up a fixed amount of money to cover any emergency expenses that may arise. This is definitely a great plan, but at a certain point it may be worthwhile to consider whether or not your money is serving you well just sitting in a savings account. For most people, the interest that is gained on the funds in a savings account on a yearly basis is negligible. If you took a portion of it and invested it into a real estate investment fund you could be earning a strong return on your investment that creates a continuous, passive revenue stream.
Now that you’ve got a plan in place to kickstart your real estate investment, consider Walnut Street Finance as your ideal investment partner. Download our Executive Summary to find out more about our investment fund, and then get in touch for further information.