Deciding to Buy

Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.

What kind of investor are you?

Investors buy real estate for many different reasons. Still, most come down to having control of an asset that is more stable than stocks and has higher returns than a savings account. The first question any investor has to ask is about my goals. Knowing the goals will identify what kind of asset to buy. A high-risk high and reward fixer-upper multifamily may be the way to go. Risk-averse people may want NNN retail spaces.

How to pay for investment properties. Cash is king, and cash investing is faster with fewer safeguards. Cash transactions allow buyers to get into property faster and often with a lower price point. Most investors look to get into a property with some amount of leverage. The benefit is that the investor has a lower cost of entry and usually a higher cash-on-cash return. Lastly, when investors talk about Other People’s Money (OPM), they likely mean syndication. If you want to syndicate your properties, be clear and upfront, planning is everything when syndicating a property.