Jared Kamrass of Cincinnati, OH is an entrepreneur and real estate investor. In the following article, Jared Kamrass explains six of the most important steps to get started in the world of real estate investing.
Amid the plethora of potential investments, selecting one can be intimidating. Nonetheless, real estate investing is an incredible avenue to build wealth with tremendous returns and those prospective investors need to ensure that they understand the fundamentals before jumping in as unpredictability persists within this market regularly.
First, Research the Market
Before embarking on an investment journey, it's important to be informed. Therefore, Jared Kamrass says that researching the market should not be overlooked; this includes understanding local laws and regulations when buying and owning property as well as staying up to date with economic trends that can have a significant impact on the value of properties.
Things to look at when researching the market include rental prices in the area, neighborhood statistics, school ratings, population trends, job growth and median income levels. Knowing this information can help an investor decide on a valuable property with resale value in order to maximize returns.
Next, Set Clear Goals
Jared Kamrass of Cincinnati, OH says that if someone is looking to succeed in real estate investing, it is critical that they have a clear set of goals. This will provide investors with a clear focus and direction. An example of this is when investors are looking for long-term wealth creation, they may opt for properties with the potential to grow in value over time. Conversely, if short-term returns are desired, then opting for rental properties would be more suitable.
It's important to get a clear idea of goals and aspirations of the investment before starting. Setting clear goals can help to keep an investor on track and ensure that their investments are aligned with their desired outcome.
Most Important - Develop a Financial Plan
Jared Kamrass of Cincinnati, OH explains that developing a financial plan is essential for any real estate investor, as it will help them decide how much money they need to invest and how much they can afford to lose. This plan should include details such as the investor's budget for the purchase, any additional funds needed for renovations or repairs, and estimated rental income from the property.
It's also important to set aside a contingency fund to cover unexpected expenses, as well as research different financing options available.
Now Go Ahead and Find a Property
Now that all of the research and budgeting is done, it's time to start searching for the perfect property. Jared Kamrass says to seek out qualified real estate agents or navigate online listings on your own; just make sure to compare multiple options as prices and rental incomes fluctuate based on the location and condition of a given property. With an informed approach, investors both new to the industry, and those who have been at it a long time can find the ideal opportunity!
When looking at properties, it's important to consider what buyers and/or renters are looking for - such as the neighborhood, local amenities, and any potential issues with the building or land. It's also important to negotiate a fair price for the property; this can be done by researching comparable properties in the area or hiring an agent to negotiate on your behalf.
Understand the Risks
Real estate investing comes with risks, and it's important to understand these before making a costly mistake. Common risks include the possibility of
tenants not paying rent on time, or at all, changes in local laws affecting rental income, market crashes resulting in a decrease in property values, and maintenance issues and repairs.
Jared Kamrass explains that it's important to be aware of the risks and understand how they could affect profit margins before jumping in on a property.
Lastly, Take Action
Finally, Jared Kamrass says that once an investor has done their research, set goals, developed a financial plan, found a suitable property, and calculated the risks, it's time to take action and make the venture. This could involve negotiating the property price, arranging financing, and setting up a rental agreement with prospective tenants.
Of course, it's best to slowly enter the market and start with a relatively small investment, such as one rental property, before building up to larger investments, multiple properties, or multi-units. This way a novice investor can gradually gain experience and build their knowledge of the real estate market before increasing their investment size, or making a financial mistake.
Final Thoughts
Jared Kamrass of Cincinnati, OH says that by following these steps and doing extensive research, savvy investors turn huge profits with confidence. With patience and dedication, real estate investing can provide a lucrative return on investment and help individuals achieve their financial goals.
