Step 1: Knowing What You Want

Real estate lovers, and investing enthusiasts, it's that time of the week again!

This week I decided to answer a few common questions that have been coming up around "What do I really need to know when buying my first property?".

I've put together 5 things that are essential when going through the process.

It's an investors guide to help you through a few things you really need to think about.

So, with that being said, get started on this week's edition.

But just before that, let me jump in with something important.

If you are interested in real estate and thinking about making your first investment, why do it alone? I have 1-on-1 coaching for new investors available on my website. Just click the button below!

You Wouldn't Buy a Semi-Truck

So I wanted to start this week's newsletter with a simple but important example in order to give you a frame of reference for the following advice. So that being said let's get into it.

Imagine you and your partner need a new car, the obvious next step is to look at what you currently use your car for as well as your future needs for the vehicle. That way your partner and yourself can sit down and decide what is needed for the new car. Let's say you sit down and talk, both of you work from home but you often nip to the shops, or to visit family. So what you decide you need is something to do daily short trips and something reliable.

After this discussion you nip out to buy the vehicle and come back with a semi-truck because you thought it looked nice, it was bigger and you could move more things with it. It cost a little more money but you insist that because it has more use cases that it's perfect!

The truth is, although a great purchase for some, in this hypothetical, it's a mistake.

It May Seem Obvious... But It's Not.

The reason I outlined this ridiculous scenario is because it happens all the time in real estate.

Knowing what you want is step 1, ground zero and the very first thought before owning a property or even thinking of owning a property. It's important to take a look at your situation and ask these three questions:

1. What do we want out of an investment property?

This question should be an outcome-based question, do you want a little extra cash? Are you saving for a college fund? Do you want to quit your job? Or are you trying to start an empire?

2. Where do you see this investment in 5 or 10 years?

This is a long-term question, an investment property could be something that you keep for years or it could be a quick flip, how long do you want to be in the deal for? Are you building long-term ties to the neighbourhood or are you moving in a year?

All of these questions are important.

3. How much work do you want to take on right now?

This is another important question. If you have a full-time job working 80 hours a week in investment banking then maybe a quick flip where you do the renovations yourself isn't for you. The amount of work you take onboard can make or break a property, you have to allocate some time to the investment, and you determine how much time that is going to be based on the type of investment or property you're purchasing.

So in truth, my advice to you as a potential first-time property investor would be...

Don't buy the semi-truck, buy the vehicle that fits you and your needs and goals.

Don't Forget About Next Week!

Want to know more about investing in your first rental property?

Don't worry I have you covered, next week I'll be breaking down another key part of finding and buying that first deal.

So, don't miss out!

And remember, if the process is a little daunting and you want some more hands-on help. I'm happy to guide you through the process.

Feel free to drop me a message, or take a look at my tailored coaching program for brand-new investors where I help you by taking real estate investing from an idea, to reality.

So, that's it for this week's edition!

I hope you not only enjoyed it but learnt a little too.

See you next time!