A tip for new RE Investors

[Danny Webber]

It bothers me somewhat to see new investors asking if they should buy a deal or if a deal is good for them. 

The short answer from my perspective is: How would we know if a deal is good for you? 

I understand the need to ask if a deal makes sense based on assumed numbers but you really need to know if the deal makes sense for you. The only way to know that is if you answer the following questions. 

1. Why do I want to invest?

2. When do I want what return?

3. What assets do I have to invest with? (time/money/expertise)

4. What is my risk tolerance?

5. What investments fit my short/long term strategy?

6. Who can I call when I need more guidance?

These are just some of the questions you need answered prior to investing. If you know these answers you will know whether a property is a good deal for you.Investing based on a plan makes more sense than random deal acquisition.

What other questions am I missing folks? Does this make sense?

Danny

[Ronald Rohde]

Great post. I'd say that you need to just jump in on a small, low leverage deal, or partner with someone to let you view the process. Failing those options, pay people for their time and opinion. I'm always skeptical of wholesalers or brokers offering advice when its clearly in their interest to be selling something and they only get paid if a deal closes.

Property Managers are friendly, lawyers love talking, even a CPA will answer your questions if you are their client.