Investing for Beginners by Peter Matera

Author:Peter Matera
Language: eng
Format: epub
Tags: Stock market investing, stock investing, grow wealth, rental property investing, real estate investing, forex trading, business plan, day trading, swing trading, make money, passive income, option trading, investing megatrends, trading strategies, stock trading, stock simulator, stocks for beginners, become billionaire, novice investors, gold rush, grow your money, market genius, cash flow
Publisher: Peter Matera
Published: 2020-06-05T00:00:00+00:00

Chapter 10: Know the Basics

Before we get into money, strategies and becoming successful in real estate, let’s start simple. By simple, I mean things that need to be considered, but can easily be overlooked. These certain things are often overlooked by newbies who really don’t know what they are doing, but are excited to just purchase their first house. They can also be passed over by a veteran who is just a little too confident, may have a little too much on their plate or get caught with their pants down.

Below is a list of things that I consider to be simple, maybe obvious, but cannot be overlooked:

Type of Property

You need to ask yourself what type of property do you want to get start off with. Whether it be single-family, a duplex, multi-family, or commercial, really ask yourself what type of money are you looking to get from your rental property. Are you looking for a hobby that may produce you with an extra $500-$1,000 a month, then maybe buying a single-family or duplex may be all you need. If you are looking for an opportunity where there is no limit to the potential earnings you can have, perhaps multi-family or commercial is where you need to be looking.

Local or Long Distance

You can have a rental property next door to your house or it could be on the other side of the country, the choice is up to you. It is very convenient having your rental property only 10 minutes down the street. However, is that convenience more important to you then possibly making more money buying in a better market? This is called buying in an appreciating market. Normally this would be ideal, but you may have to look further distances from where you live to accomplish this goal. In this case you may have to hire a property manager. Often times if the market goes up your monthly returns go down with a bigger payout at the end. Also, smaller towns have a tendency to have lager monthly returns but don’t appreciate as well.

Self vs Property Management

If you think customers at a shopping center are bad, imagine having a customer that lives in a house that your own. . . they are there 365 days a year and have your cell number. You need to keep this in mind because you will be the one they call at 3:00 in the morning because they decided to flush their dinner down the toilet, and they cannot unclog it. Yes, this has happened, and no, I’ve never heard of anyone else ever flushing left over food down the toilet. My point is, people do weird things and you need to make sure you are really up for the task if you plan on self-managing the rental. You will save money by not hiring a property manager, which is really the only upside for this road. However, it may be worth the money to not have the headache of your phone ringing from difficult tenants all the time.

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