Listen To Your Mentor
Last week we had a client that came in as a referral from our previous client. The client that was referring us has started to buy and hold single family properties in 2 different states, and today co-owns approximately 5-7 rental doors. He got started in his 30’s and always thought that he would like to go back and start over by investing earlier and starting that journey sooner. Personally, I told this referred client the same thing because if I had a magic wand and could go back in time I would have started investing much sooner, given up much more, and kept pushing to buy more property faster than I did.
What Should I Do?
The client that was referred to us was in the perfect position to start his investing career, and what is even better, is that his fiancé was completely on board, and even somewhat excited as well (this step is crucial if you want to be successful in investing, if you have a significant other). They told me that they both had good paying jobs, no kids, no pets, and no want for a family for at least another year or two. They had gotten their traveling out of the way early, and were ready to focus on building their portfolio (literally, could not have asked for more perfect clients). They wanted to build a portfolio but did not know what to buy, when to buy, or what returns they should be looking for.
Some advice that we always give clients in a situation like this is to do what is comfortable for them. Stepping out of their comfort zone is a must, but there should be a comfort with the decision you are going to make, and the way that you are going to live. Some people really have a problem with being a Landlord and therefore may not want to have apartments to deal with, but they may prefer interior design and decorating which lends itself more to the upgrade and trade strategy.
Find Out What You Can Afford
As a new investor or first time buyer, you definitely want to find out what you can afford before you go out and start looking. This helps two fold by giving you a way to know what you can look at, and if you are purchasing multiple units, to know what your mortgage will be without any tenants and then making sure you are okay with that number should you have a vacancy of some sort.
Speak To Us
If you have questions about the process or are looking at doing a few different things and want help trying to decide what is right for you then feel free to reach out to us through our contact at the bottom of this article. We are always here to help.
Until next time,