If you’ve been asking for a career change, the chances are high that you’ve taken into account and are seriously considering starting that new career in Salt Lake City real estate. You’re not alone: data shows that more than 17,000 people in the U.S. Google “how to work in real estate” every month! Rental real estate investing, mainly, is a really inviting option considering the potential to earn both a monthly income and to develop real wealth through property appreciation. However, is a career in real estate investing right for you? Here are a number of questions to ask yourself to figure out the answer!
What do you already know/need to learn about investing?
One of the primary questions you should ask yourself is how much do I already know and comprehend regarding buying, leasing, and managing rental properties – and how much do I need to learn? A lot of people have a number of things to learn since investing in rental properties requires a wide range of skills and know-how. The good news is that understanding the business of real estate investing is something you don’t need a college degree to do. There is a profusion of free courses, podcasts, books, and other investors to learn from.
Are you self-motivated?
As a rental property investor, you are in business for yourself, and commonly (at least in the beginning), by yourself. That states that you really have to stay motivated and on track to land your first (and second, and third) real estate deal, then tackle several tasks from property maintenance and repairs to promoting positive tenant relations. If you find yourself striving to set goals, follow-through, or manage your time effectively, these are all needed skills you may need to have first before doing real estate investing full-time.
Where do you stand financially?
To invest in rental properties, it’s general knowledge that you will be required to have your finances in order. You’ll, secondly, be in want of an excellent credit score and, if you set up to finance your investment properties, cash saved up for the down payment, closing costs, and renovation expenses. It likewise holds good to know your financing options and have a backup plan prepared if things change. Real estate investors are usually called to move quickly when the right property is available, so you want to be pre-approved for any loans and otherwise have everything ready to go.
What is your risk tolerance?
Another necessary question to ask yourself when considering a career as a real estate investor is how comfortable you feel about taking risks. Like all investments, real estate is present with its own set of risks, from investing property to ending up with a less-than-ideal tenant. That being said, there are a number of measures to minimize these risks, first and foremost, if you know how to thoroughly assess a potential property, understand your local rental market, and accurately crunch the numbers.
What are your purpose and end goal?
On a final note, it makes perfect sense to have a clear understanding of your purpose and goals for starting a career investing in real estate. Are you on the lookout for more flexibility in your schedule? Higher earning potential? The freedom to work for yourself? These are all fine benefits that come with the business. Be that as it may, on top of why you want a career as a rental real estate investor, it’s also important to know your end goal.
Can you visualize your end goals or exit plans? Do you have a retirement plan? While buying and owning rental properties is a long-term investment strategy, to cash in, you’ll eventually need to know how to handle your investment properties and when the opportune time comes to retire.
If you’re ready to take the next step toward a career in rental real estate investing, give Real Property Management Wasatch a call. We help you investors to conduct market analyses, locate off-market deals, find quality tenants, and set accurate rental rates. If you’re earnest with respect to launching a new career, making our Salt Lake City property managers part of the team is one of the best ways to get your business off to a very good start!
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