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Brandi Ostwald's Blog

By Brandi Ostwald | Agent in Bozeman, MT

There are First-Time Buyers and then there are FIRST-TIME HOME INVESTORS

Hop on the internet and search first time home buyers and you will get more than enough information and tips for first time home buyers, but with the market swinging into recovery, there is more and more need for tips for those venturing into the world of first time home investing.

Investing is a different game than buying since, although personal assets are on the line, the stresses of moving, finding security for your family and self, and the emotional investment is greatly reduced. With that being said, it is still a high stress transaction the first few times you enter into the market as an investor.

  • It is all a numbers game. The priorities are simple: what can you afford, what you are buying the home for, how much money do you want to put into it, and what do you want as a return either in the form of a turn-around selling profit or a rental income.

  • Develop a pattern. Figure out if you are a rehabber, a buy-and-holder, or a wholesaler. Once you know what strategy works best for you, stick with that and build a program based upon it that will allow you to expand from your first investment to your last.

  • Do not overextend. Knowing your own limits is essential in any decision in life and especially when investing. Investments can be balloons that lift you up just as easily as they can be anchors and pull all you have invested down.

  • Build a team around you. A successful investor will build a team up around them. They will need a Realtor, lender, accountant, and a lawyer at the very least. Find the best professionally and personally. Setting yourself up as an LLC can minimize your tax liabilities or to protect your assets.
  • Find a target market. Investment homes should be low maintenance and offer wide appeal. Person tastes need to be set aside. Avoid the weirdos on the market (those homes that offer a unique space or layout). They are great for the right family, but you are looking to cast a wider net and turn your profit.

Tips for non-investors and for the community supporting the investors, note when a home you purchase if it has been upgraded to a classier and more elegant home for their hard work! Investors are the backbone of the real estate market through the ups and down it encounters.

http://www.realtor.com/blogs/2013/06/06/six-tips-for-first-time-investors/

 

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