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