Are you planning to invest in real estate in New Jersey, but feel worried about doing it yourself? Don’t worry, you’re not alone. Buying an investment property can indeed be scary when you don’t know what you’re doing. Avoid the investment horror stories; take note of the following.
1. Creeping Numbers
It’s been said that the greatest fear is the fear of the unknown. Don’t let this fear overwhelm you by analyzing properties and figuring out your income, expenses, and potential profit from an investment property you’re eyeing. The amount of money needed can be scary, but only if you haven’t planned ahead and did your research. When you know how much you need to buy a property and the potential returns to expect, the idea appears less frightening.
2. The Big, Scary Process
The entire process of deciding which investment property to buy, and then going through the process of buying it can seem like a gargantuan task. You can beeasily overwhelmed when you have to deal with real estate agents, banks, lawyers, family members, friends, buyers, contractors, and anyone else involved in the process. The trick to overcoming this feeling is to break down the huge task into smaller parts. Make a schedule for tackling each mini-task, then tick them off your list. Doing so gives you a sense of accomplishment and the motivation to tackle the next task.
3. Fear of the Unknown
Since this is your first time to buy a property for investment, you may find yourself in unfamiliar territory. You must recognize that the fear and apprehension you feel for taking the first, or next step, is natural. Think about your past—what new thing did you try to do or learn? Remember how it felt, what you did to complete it, and if you did the task or learned the lesson successfully. Even if what you did in the past wasn’t related to investing, remember how you completed that task—and apply how you did it to this one.Once you connect the task of investing to something familiar, you can remove your fear of it.
4. Scary Things Not Under Your Control
Interest rates, calamities, and the performance of the economy are some factors that you simply can’t control. Whether these conditions are good or bad, you should remember that you can only manage their effects and don’t have the power to change them. To counteract this scary fact, remember that there will always be a time when the market declines, and when the market improves. You will also have some things under your control, like how much rent to charge, which property to purchase, and who gets to lease it.
5. Horrible, Cheap Workmanship
More often than not, an investment property will need repairs—sometimes it will be minor, sometimes it will be major.The worst thing you could do to an investment property is to use shortcuts to fix issues, hire inexperienced workers instead of professionals, or both. Don’t scrimp on paying for the services of key people like lawyers, real estate agents, home inspectors, and contractors. There are many horror stories about people who hire inexperienced, low-priced workers, lawyers, or contractors, and ending up paying more for real professionals to undo the damage. It’s okay to be practical, but when you choose to be cheap, the consequences can be costly.
6. Doing It All Alone
Perhaps the scariest thing about buying an investment property is doing it alone, and without anyone to advise or guide you. While this can be done, it can prove costly and it would be better to have a mentor. Someone who has experience in buying income properties, and is successful at making money from them will be of immense help. With their guidance, you can avoid making mistakes, and they can bolster your confidence. They can also help you when unexpected things happen.
Buying an investment property in New Jersey or any other market can be scary. Let Savannah Properties help you overcome these fears and assist you in buying your first investment property!
We can offer a wide selection of investment properties with a lot of the paperwork done already.
Contact us to know more, or call us at our office at (609) 622-4051.