How Much Money Do I Need To Buy My First Investment Property?
The answer to this frequently asked question by newbie investors depends on many factors, such as:
- Will you be paying all cash or financing the purchase?
- How much cash reserves do you have for rehab and holding costs?
- Do you have another source of income besides this investment?
- Are you buying it to hold as a rental or to flip for a quick profit?
- How many investment properties do you plan on acquiring?
Even though there has been no better time to invest in Southwest Placer County real estate than it has been these past couple of years, not everyone can be a successful real estate investor. Many newbie investors lose money on their first investment because they rushed into buying before doing their due diligence. Some of the reasons for their losses include:
- Unknowingly buying a second mortgage at a trustee's sale
- Getting drawn into a bidding war and paying above wholesale
- Underestimating the total cost of rehabbing the property
- Taking too long to get the property for rent or for sale
- Overpricing the property when listing it for sale
For newbie investors, having an experienced real estate investment specialist on their team is priceless. If you're thinking about investing in Southwest Placer County (Roseville, Rocklin, Lincoln, Loomis, Granite Bay) real estate, we'll be happy to speak to you about your financial goals. We help investors purchase properties at trustee's sales, bank owned foreclosures, short sales and traditional sales. Contact Bob Souza at 925-513-3400 or Leilani Souza at 916-408-5500 to set up a free consultation.
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