If you are a newbie planning to venture into commercial real estate investing and have an alternate source of income, then I would recommend that you start your real estate investing journey with putting your money in an apartment building.
Professionals are always on the move for new jobs and opportunities. Most of them move to a new city for a few years and do not intend to acquire a forever home there. Their preferred choice of residence would obviously be a rental home.
Then there are families who want to downsize because of rising expenses and living in their own houses became unaffordable. Occasional economic downturns only accelerate this desire to move to a rental space than managing their own.
There lies a huge potential clientele in your neighbourhood, in your country, state and even across the country for fire in the belly, aspiring investors like you.
As with every other business, you must make informed and smart first moves to make your venture an extremely profitable one. Getting yourself educated is the most important and crucial first step. You must learn about the market analysis, evaluate various options available and look for the apartments in upscale and new neighbourhoods that are closer to the schools, hospitals, shopping centres.
You must also acquaint yourself with the technical terms involved in multifamily investing like CAP rate and calculation of NOI, so that you can communicate with the other people in the multifamily business easily and thus be more effective in forging deals.
To learn tricks of the trade faster, you must dive deep into the experiences of other more experienced and successful real estate investors. Signup for their podcasts and meetups and see yourself growing by leaps and bounds in a shorter duration of time.
Every business brings its own elements of risks and smart investors overcome these risks by acting smarter. Since this is going to be your first real estate investment, I would suggest that you either start with a small investment or invest big by partnering with an experienced and trusted real estate investor.
These are a few helpful tips for a new real estate investor like you. If you are serious about your investing goals, check out our youtube channel and learn from an experienced team at American Made Home Solutions. Then when you are ready to go to the next step schedule an appointment to see all the resources we have to help smooth your journey to success.
