| Deciding to invest in real estate is one of | | | | have the money to pay for it, if it is a |
| the best decisions you will ever make for | | | | piece of property that has made money in the |
| your future. However, it isn't something you | | | | past, the bank will probably give you a loan. |
| can decide to do one day and then rush out | | | | They know that they will make money on the |
| and do the next. There is a process that you | | | | deal regardless of what happens to your |
| have to learn and lots of information to | | | | investment. If you are looking at a large |
| digest. If you think you have done that | | | | property that you can't afford outright, you |
| already and you are now prepared to go out | | | | will probably be able to get partners or |
| and make your first purchase, here are five | | | | other investors to contribute. |
| questions to ask that will help you to | | | | |
| prepare. | | | | Is my team in place? You can't do this |
| | | | successfully without a team. This is simply |
| What type of property are you interested in? | | | | because there is so much work, and so many |
| Are you interested in a duplex, multi-unit | | | | different types of expertise needed, that you |
| complex, or perhaps just a single family | | | | simply can't do it all by yourself. There is |
| home? Are you interested in hotels or motels? | | | | not enough time for you to become proficient |
| What about undeveloped land? How you answer | | | | enough with real estate law and accounting, |
| this question will determine other things | | | | plus broker your own deals and manage your |
| that you do later, such as how you go about | | | | own properties. It is necessary to delegate. |
| financing your investment. It is also best | | | | That is why McElroy says you start with a |
| to focus on a particular type of property so | | | | lawyer, an accountant, a broker and a |
| you don't go on wild goose chases and so your | | | | property manager. After that, you may also |
| team knows what they need to clue you in on. | | | | need appraisers, tax consultants, a surveyor, |
| | | | a structural engineer, an architect, an |
| Do you have a specific area that you are | | | | estate planner and more. |
| interested in? Are you going to invest in the | | | | |
| city where you live? If not, what part of the | | | | How much do you have to spend on repairs? |
| country are you interested in? The Internet | | | | This is essential. Knowing this will help you |
| is your best resource for determining what | | | | determine what areas to look around in |
| area of the country you would like to put | | | | because some areas may be full of old |
| your time and money into. Ken McElroy, author | | | | buildings or some newer buildings may |
| of "The ABCs of Real Estate Investing," calls | | | | actually be in serious need of repair. You |
| this Level I research. Later, when you have | | | | will want to what you are getting yourself |
| determined a part of the country and a city | | | | into and whether you can handle it. |
| in which to look, you will need to decide on | | | | |
| a neighborhood. You will discover that during | | | | This isn't a an exhaustive list of questions. |
| McElroy's Level II and Level III research. | | | | Once you start your investment property |
| | | | adventure, you will discover a consitent list |
| Do I have a plan to pay for it? The type of | | | | that you will need to pay attention to. But |
| property you are looking for (as well as your | | | | these will get you started on the path to |
| existing equity) will help to decide how you | | | | asking yourself the best questions. Sometimes |
| can buy the investment. If it is a small | | | | asking the right questions is more important |
| property such as a house, you may want to pay | | | | than the answers themselves. |
| for it outright. However, even if you don't | | | | |