Email Dave Email
Business Growth
Sep 18, 2015

How To Start Investing In Real Estate

Sponsored Content provided by Dave Sweyer - Owner and Broker, Sweyer Property Management

Investing in real estate may sound like a great idea (see my article  on the topic), but the amount of detail and the number of steps involved can be intimidating, even for the most experienced investor. This is why I’ve decided to share some insights and strategies that I have learned about over the years to help others succeed and avoid the common mistakes that people make when they begin to invest in real estate.

One of the first and most important steps to take when considering whether or not to become a real estate investor is to ask yourself a few serious questions, such as:

  • Am I prepared to make a 15 percent to 20 percent down payment? In most cases, the purchase of an investment property requires a 15 percent to 20 percent down payment.
  • Will I be able to meet the financial demand of potentially having to cover another mortgage payment? Renters don’t pay sometimes. Allocating for vacancy rates is an essential strategy for success.
  • Is my job or career stable and secure? For most people, investing in real estate doesn’t become a full-time job until they have successfully purchased and managed numerous rental properties.
Even if you answered “no” to all these questions, it could still be within your reach to invest in real estate. A good place to start could be a real estate investment trust (REIT). The entry point is low compared to other forms of real estate, since it basically just involves buying shares of a portfolio of properties.

One of the chief advantages to purchasing a REIT, which is similar to buying a stock or mutual fund, is that of liquidity. It’s much easier to sell shares of a REIT than a rental property.  

If you answered “yes” to all of the questions above, the next step is to build a relationship with a competent and local mortgage broker. Locals have more of a vested interest in the community and will work harder to help you succeed.
Finding a dedicated and knowledgeable Realtor is another important step. A Realtor who cares about your needs will help you find the perfect home to fit your investment strategy. This will help you avoid spending countless hours searching the Internet.

Once the right property is found, a sales price negotiated, and all the rest of the pieces have come together, the process has just begun. This is when the most important question becomes the following: Do I have what it takes to effectively manage a rental property? 

As I mentioned in a previous article, it takes finesse and the ability to constantly maintain a professional demeanor to be a successful property manager. Not only do tomes of laws exist pertaining to rental properties, but it also takes a specific type of personality to handle issues and deal with tenants. If you realize this isn’t in your toolbox, it could be in your best interest to hire a professional management company.

For more tips about investing in real estate, information about our rates or referrals to qualified real estate professionals, please send an email to our office at [email protected], or visit www.WilmingtonForRent.com.    

Sweyer Property Management has been providing real estate property management services and long-term rentals to the Wilmington area since 1987. The company continues to be the industry leader with more than 1400+ units and more than 20 employees. Sweyer Property Management has exhibited continuous growth throughout the Wilmington, Leland and Hampstead areas while maintaining a 4.8 Google+ rating for customer service. To inquire about the company’s full-service management services, or to take a tour of houses for rent in the area, email [email protected], or visit WilmingtonForRent.com. You can also Like and follow the Sweyer Property Management Facebook page to get property management tips or see properties for rent.

 

Sweyer animated 300x250 ad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Burrus rob headshot 300x300

Full Speed Ahead: Before and After Hurricane Florence

Robert Burrus - Cameron School of Business - UNC-Wilmington
Billhunter300x300 b&w

Doodle for Your Noodle

Bill Hunter - Wilmington Design Company
Dave hoff heashot 300x300

Individual Assessments: People Decisions Driven by Science

Dave Hoff - EASI Consult

Trending News

Benefits Spring Up In Florence’s Wake

Staff Reports - Oct 19, 2018

TRU Colors Included In South By Southwest's Next Lineup

Vicky Janowski - Oct 19, 2018

Wilmington Area Home Sales Fell 48 To 63 Percent During Storm Month, Report Shows

Cece Nunn - Oct 19, 2018

Insurance Industry Sees A Flood Of Claims

Cece Nunn and Christina Haley O'Neal - Oct 19, 2018

Building, Rebuilding Homes After Hurricane

Cece Nunn - Oct 19, 2018

In The Current Issue

Storm Updates Flew On Social Media

Robert McIntosh, owner of Coastal Cell Phone Repair in Wilmington, made a lot more “friends” than he expected during Hurricane Florence....


Tourist Attractions On The Mend

As recovery efforts from Hurricane Florence continue, several area attractions remain damaged in her wake. Last month’s unwelcome visitor no...


Insurance Industry Sees A Flood Of Claims

As Ian Archibald awaited the arrival of a State Farm Insurance adjuster at his Wilmington home on Oct. 9, his mind was also on a much more d...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes