As a new investor, you’re likely excited about the prospect of completing your first deal. But it’s important to take your time, review the market environment, and ensure your funds are being allocated effectively. Our team has extensive experience within the investment marketplace, and in this latest post, we explain what you need to do before completing your first deal.
1. Build Your Support System
Your support system will be crucial to your success over the long term. Investing can be a challenge emotionally, particularly for if you’re not sure what to expect. Having a support system of friends, family, and fellow investors will help you make more effective decisions for yourself and your investment profile.
2. Form a Board of Advisors
While you should have family members and friends to discuss personal issues that might arise during your investment process, you also need industry guidance. Forming a board of advisors with past investment experience can help you navigate changes within the market and overcome potential obstacles. A seasoned investor will understand the best approach when dynamics change and can give you the confidence and knowledge to move forward.
3. Choose an Established Accountant
Your accounting processes will be the element that’s most important to your overall revenue generation. Making sense of the numbers and building a profile for your investments can ensure that you know the investment’s direction and when to buy or sell. An accountant will be an important partner as you work to make difficult decisions throughout the course of your investment. They can help you determine the best strategies to mitigate tax exposure while also providing updates on your current financial status.
4. Select a Marketing Firm
If you plan to purchase a multifamily or office property with space for a number of additional tenants, you may want to invest in the services of a marketing firm to help attract new renters.
While you can likely execute on small-scale marketing initiatives yourself, additional help may be required when it comes to promoting your building as a living or working solution for others.
Before you select a marketing firm, ask to see examples of their previous work. If at all possible, try to engage with those who have experience with commercial real estate marketing.
5. Cultivate Your Investment Network
An investment network comprising high-earning individuals will ensure you have access to capital when required for your investment projects.
Call those within your professional sphere and find out about their potential investment requirements. Would they be interested in partnering with you? What would they ask of you if they were to get involved in the project? Once you have a solid network of investors, you can then move forward in analyzing properties and pinpoint the right project for your group.
Working with a qualified loan specialist can ensure you have the guidance and expertise to succeed with your investment project. To learn more about the process of real estate investment, contact us today.