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How to start your first RE investment?

What are your options? Many clients have been telling me they want to invest in real estate yet they don’t know where to start.

Here in the US, there are a lot of options for Real Estate Investment. From land, to flipping, single house, duplex, to multi units, commercial, retail, industrial, and syndication, are within reach. If you are a first time investor, I always suggest to start small because you can learn a lot from the process and when you get familiar, you can scale up. your investment can go bigger.

First of all, I would like to know, what is your investment budget? You have the option of putting as little as 3.5% down, loan with PMI, or general convention loan depending on your financing status. Once we know your financial situation, we will determine what type of purchase you can make based on the fund you have or the fund you like to invest. There are 4 elements you will be looking at for your investment,
1: cap rate.
2: cash flow.
3: equity buy down (meaning tenant also paying down your mortgage principle).
4: appreciation.

What a cap rate means is the ratio of property net operating income to its purchase price, the lower the cap rate means the lower the cash return on the property. In
the area here in general, you may be looking at ranging 2-4% cap rate based on the property location and condition. You will need an experienced agent to dig into the area and find deals for you.

I can assist you and find something that the return is sizable to cover all expenses. Knowing your available fund is important to determine what type of investment best fits you. In my experience, I helped many friends and clients to purchase property back in 2010 with as little as $40k down, with my assistance, their investment has already scaled up in recent years, now, their initial down payment of $40k has become $500K~ equity nowadays. Not bad, right. Invest wisely with an experienced agent will help you achieve your financial freedom and goals. Just remember thing doesn’t happen in a day, it takes time and it is not a miracle. It takes strategies, time, knowledge and planning.