If you’ve been mulling over a career change, possibilities are that you’ve also seriously thought about starting that new career in Franklin real estate. You’re not alone: data shows that more than 17,000 people in the U.S. Google “how to work in real estate” every month! Rental real estate investing, chiefly, is an ideal option taking into account the potential to earn both a monthly income and to build and an increase of wealth through property appreciation. With that said, is a career in real estate investing right for you? Here are a number of questions to ask yourself to recognize if it indeed is for you!
What do you already know/need to learn about investing?
Amongst the first questions, you should ask yourself is how much do I already grasp in knowledge about buying, leasing, and managing rental properties – and how much do I need to learn? Many people have considerable things to learn since investing in rental properties requires a wide range of skills and know-how. The marvelous news is that being aware of the business of real estate investing is something you don’t certainly need a college degree to do. There are a great number of free courses, podcasts, books, and other investors to learn from.
Are you self-motivated?
As a rental property investor, you are in business for yourself, and customarily (at least in the beginning), by yourself. That definitely means that you must stay motivated and on track to land your first (and second, and third) real estate deal, then accomplish several tasks from property maintenance and repairs to promoting positive tenant relations. If you find yourself striving to set goals, follow-through, or manage your time effectively, these are all various helpful skills you may choose to have first before getting into real estate investing full-time.
Where do you stand financially?
To invest in rental properties, it’s widespread knowledge that you have to have your finances in order. You’ll, on top of everything else, entail having a credible and good credit score and, if you actually plan to finance your investment properties, cash saved up for the down payment, closing costs, and renovation expenses. It also definitely makes total sense to know your financing options and have a backup plan ready if things change. Real estate investors do commonly have to move quickly when the right property is available, so you have to certainly be pre-approved for any loans and otherwise have everything ready to go.
What is your risk tolerance?
Another substantial question to ask yourself when considering a career as a real estate investor is how comfortable you feel about taking risks. Like all investments, real estate goes with its own set of risks, from securing a rather “bad” property to ending up with a less-than-perfect tenant. But don’t worry, there are considerable ways to minimize these risks especially if you actually know how to thoroughly assess a potential property, understand your local rental market, and accurately crunch the numbers.
What are your purpose and end goal?
One final important thing to remember, it’s advisable to have a clear understanding of your purpose and goals for starting a career investing in real estate. Are you keen on more flexibility in your schedule? Higher earning potential? The freedom to work for yourself? These are all desirable benefits that come with the business. Having said that, on top of why you want a career as a rental real estate investor, it’s also important to know your end goal.
Can you visualize your end goals or exit plans? Do you have a retirement plan? Though it’s true that buying and owning rental properties is a long-term investment strategy, to cash in, you’ll eventually need to know how to handle your investment properties and in due course retire.
If you’re ready to take the next step toward a career in rental real estate investing, give Real Property Management Greater Milwaukee a call. We accompany and partner up with investors to conduct market analyses, locate off-market deals, find quality tenants, and set accurate rental rates. If you’re definitely committed to launching a new career, making our Franklin property managers part of the team is one of the best ways to get your business off to a certainly good start!
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