I want to become a “Real Estate Investor” Where Do I start?
Question by : I want to become a “Real Estate Investor” Where Do I start?
Hello Im 18 years old I want to become a real estate investor. Ive been up for days researching the in’s and outs. Im certain this is the career path I would like to go into. I want to purchase Apartment homes. Now here is where I run Into a wall. Where Do I start? Ive been looking up different properties and prices… how do I even go about buying a property? I figure I will need a down payment on a loan. of some sort?… Please help I have so many questions. And Ive become really passionate about this career field. I could really use a step by step guide even a mentor to help me become successful in this field.
Best answer:
Answer by Steve D
An apartment building is an investment and as such, you will need a 20% down payment (or more) to buy the building. You will also need to qualify for the mortgage loan (unless you can afford to pay cash) which will require that you have some form of steady income. While owning/operating an apartment building can be profitable, consider the headaches before making the plunge – first there are the tenants who don’t pay on time or at all (meaning legal proceedings to evict), there is maintenance,, management, etc. Unless you are adept at fixing things, you will have to pay repair folks (plumbers, electricians, etc.) when something goes wrong (at $ 60 or more an hour plus parts). There is general maintenance, overhead even when apartments are empty.
Before buying anything, have an accountant go over the books to make sure the projected cash flow will cover expected costs plus a profit (another cost).
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