Last updated on February 20th, 2018 at 12:44 am -
How to Get Started With Real Estate
Real estate is a lucrative investment that can turn your fortunes. The asset values for your properties have low depreciation compared to investing in other sectors. In addition, the returns are plentiful. The payback period for a well-managed property ranges between seven to ten years. This means after that, that asset becomes an eternal revenue-generating source.
Such benefits and advantages can only be overlooked by a few. Having the crucial insights before diving into this investment is crucial. This will save you from being part of the alarming statistics of failures. At LenCred, we offer financial advice based on the market trends. This will set you off with the right footing for maneuvering entry and having a successful real estate investment.
We will also guide and help you secure resources through the many real estate investment financing online products. These include business lines of credit loans, term loans or SBA loans just to mention a few, depending on your needs. In retrospect, to succeed in real estate, there are three steps you need to follow:
Step One: Know what you want
You need to be firm on what you want from the onset. The number of real estate opportunities and viable ventures to exploit are quite a lot. You have to make a choice early enough and be firm on it. Indecisiveness and greed will crush your dreams faster than your first rental income.
Making the decision and being firm will give you one thing. You get to do a detailed and thorough feasibility study to establish your venture’s viability. This will save you the time and money you could have wasted putting your money in a diminishing venture.
Step Two: Establish a business around your venture
Get down to creating an LLC. Doing it as a company has its benefits. Banks trust companies way more than they do with individuals. A company will also shield you from absorbing your business’ liabilities.
Step Three: Financing
Getting the needed resources to materialize a successful real estate investment is crucial. Lending institutions and real estate investment financing online sources are good options to consider. Then again, work with a foreign investor in exchange for a percentage stake in your LLC. With adequate financing, contract the right company to begin building or renovating your venture.
Building a Real Estate Investment Business
Turning your idea into a successful business is the answer to success in real estate investment. The concept of succeeding in real estate should start from building your real estate investment business. There are several points you should consider in creating your business to succeed. These are financing, insurance, having a realtor, legal structure and size of investment.
Insurance – Setting up a company and hiring personnel entails ensuring they are safe. Workplace conditions and environment should be conducive and non-hazardous to prevent litigations. These may arise as a result of accidents that occur to employees within the premise. Incorporation and ensuring you do not take up responsibility for such will not be enough to prevent inconveniences. Tenants will also need insurance covers in case of damages. Taking up covers to prevent being held accountable for damages incurred on them or property is quite cost-effective.
Financing – No business can run without financing. Without financing, then you have no real estate investment property. Unless you have a resourceful financial backing, debt financing and partnership are unavoidable. This will entail shedding a percentage of you stake in the LLC to accommodate the new investors.
Alternatively, real estate investment financing online sources are the most competitive of all debt financing options you can choose from. They offer the lowest of interest rates with the lowest of monthly payments after a grace period. This makes it easier for you to invest through affordable financing. Applying for a real estate investing financing online loan is also less tedious. The real estate market is highly volatile. Property values fluctuate with the economy leaving opportunities you can capitalize on. It is, therefore, important to have enough resources to put you at a flexible position to exploit this.
Legal Structure – When setting up your business, you need to be smart with the law. First, understand that you and your business are two separate entities. As discussed, real estate is highly volatile and you cannot fully predict the future. Therefore, any investments made should be addressed to the company. This is crucial to saving you from absorbing responsibilities on losses incurred from the investments made. To do so, hire a real estate attorney who will help you in incorporating. Alternatively, you can register your LLC by filing with your state and meeting their stipulated requirements.
Size of Investment – The entry and size of investment your LLC will be undertaking determines the level of income you will make. Small investments are easier to do because they are less costly. However, these projects are equally low in margins as they go for way low prices. This takes us back to financing. You need to have a good resource backing. The bigger the resources the bigger the project, hence the greater the margins it will generate. To boost your reserves, try real estate investment financing online sources.
Get a Realtor – This is important for investments that involve buying and selling property. When starting off, being a failing example is what you cannot afford. Avoid rookie mistakes and work with a realtor. These experts understand the market, products and their viability far much better than you. Look for a reputable realtor to guide through buying and selling.
Apply for Real Estate Investment Financing Online
At LenCred, we will help you in a number of ways concerning your investment. To begin with, we will help you in the general budgeting process. Knowing how much you require for your whole process is important to knowing the level of debt financing you require. We will look into your level of income, expenses you are incurring and how they can translate to the investment you seek.
There are a number of factors that lenders consider before awarding you a loan. They have to do an analysis of your financial position. Knowing your financial position will help in drafting a good application that will guarantee a loan. We will guide on how to get the right real estate investment financing online company that will offer the best of terms. This will in turn help you service your needs. For a good mortgage financing, we guide you in securing good business lines of credit. These are tailored for real estate investments and are bound to offer favorable terms. Alternatively, real estate investment financing online sources will also be a good option to complement your reserves. This is because of their affordability and easier access.