Growing up, I remember hearing the story of Jack and the beanstalk. The story begins with Jack, a poor farmer, investing his money in a bag of magic beans. No one believed him that the beans were magic, and it wasn’t until he climbed a beanstalk, fought a giant and chopped down the aforementioned beanstalk did his investment really pay off. Our experience in investment property financing has taught us that real estate investment is a lot like that. It will be adventurous, scary, frustrating, and so much more…but the return can be like getting a goose that lays financially golden eggs.
But before you go counting chickens before they hatch, here are five frustrating things about real estate investing that you need to consider for this financial journey:
It’s not going to happen overnight.
This is isn’t a slot machine with instant payouts. This is you being patient and taking care of your investment. Wealth building is a slow process. If you are expecting overnight returns on your real estate investments you are in for an unpleasant surprise.
This is not a hobby.
To put it bluntly, real estate investing is a lifestyle. Depending on what you are doing, rental property or fix & flip, you are going to have to dedicate incredible amounts of time and focus to this investment. This is why our investment property financing programs are handled by professionals with an eye for detail and experience to know what to look for.
Your people skills will be put to the test.
From real estate agents to appraisers, to county clerks, to brokers, and so many more, you will be dealing with a lot of people. Not all of them will have the best of attitudes of the perfect desire to work with you. This is one time in your life where you will have to have the patience of Job, because you will be tested. We suggest a desktop copy of “How to Win Friends and Influence People.”
You are going to kill some trees.
If you have not done this before, you will be shocked at the amount of paperwork you will accumulate during this process. Although the use of technology has eliminated a lot of the paper, the work is still there, requiring what seems like endless signatures and initials. Make sure you have someone with you who can quickly and clearly explain each of these documents before you sign them, because your signature means you have responsibility for knowing what each document is for.
Your investment may go south.
There is always an element of risk in any investment. You need to be sure that you and any other stakeholders involved are clear about the level of risk the investment requires. Nothing is ever 100% and it is best to be realistic about one’s expectations. The best laid plans of mice and men often go awry. Let us help you plan your investment property financing for maximum success. Call us today at 240-436-2340 or fill in our online application form.