If you’ve been thinking over a career change, odds are that you’ve weighed up on starting that new career in Baton Rouge real estate. You’re certainly 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, more particularly, is an excellent option given the potential to earn both a monthly income and to accumulate real wealth through property appreciation. Having said that, is a career in real estate investing right for you? Here are a few questions to ask yourself to determine your answer!
What do you already know/need to learn about investing?
Among the first questions, you should ask yourself is how much do I already really understand on the subject of buying, leasing, and managing rental properties – and how much do I need to learn? Most people have plenty to learn since investing in rental properties requires a wide range of skills and know-how. The fantastic news is that appreciating and understanding the business of real estate investing is something you don’t certainly need to have a college degree to do. There is a boatload 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 characteristically (at least in the beginning), by yourself. That spells out that you have to stay motivated and on track to land your first (and second, and third) real estate deal, then complete various tasks from property maintenance and repairs to promoting positive tenant relations. If you find yourself trying so hard to set goals, follow-through, or manage your time effectively, these are all advantageous skills you may need to polish first before exploring real estate investing full-time.
Where do you stand financially?
To invest in rental properties, it’s actually common knowledge that you will have to have your finances in order. You’ll, on top of that, need to have an excellent credit score and, if you do plan to finance your investment properties, cash saved up for the down payment, closing costs, and renovation expenses. It indeed makes perfect sense to know your financing options and have a backup plan made up if things change. Real estate investors many times have to actually move quickly when the right property is available, so you have to be pre-approved for any loans and otherwise have everything ready to go.
What is your risk tolerance?
Another integral 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 associated with its own set of risks, from paying off a second-rate property to ending up with an unlikeable tenant. But take note, there are plenty of proper ways to minimize these risks, first of all, if you really 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?
One thing to remember, it is always good to have a clear understanding of your purpose and goals for starting a career investing in real estate. Are you anxious for more flexibility in your schedule? Higher earning potential? The freedom to work for yourself? These are all more than decent benefits that come with the business. On the other hand, besides 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? Notwithstanding that 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 right moment comes to retire.
If you’re ready to take the next step toward a career in rental real estate investing, give Real Property Management Baton Rouge a call. We easily work along with investors to conduct market analyses, locate off-market deals, find quality tenants, and set accurate rental rates. If you’re absolutely determined to launch a new career, making our Baton Rouge property managers part of the team is one of the best ways to get your business off to an absolutely great start!
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