Getting involved in real estate investment can feel overwhelming. When you aren’t sure where to begin or how to get started, most of the time can lead to nothing but frustration. In our latest post, we’ll talk about 7 effective tips for buying investment property in Chicago.
#1 – Network Every Chance You Get
It’s true in other business ventures as well as real estate, it’s not always what you know, it’s who you know. By getting yourself out there and in front of the people in your industry, you build up the possibility of hearing about potential deals. Relationship building is important, let people know about your desire to buy property in the area. Joining different networking and real estate investment clubs can help you connect with other players in the industry, or make it a must to meet people at seminars and local events. Talk with other real estate entrepreneurs and share deals. If there is a deal that isn’t right for you, let others know about it. The favors will be reciprocated. If you’re ready to invest in Chicago multifamily, single-family, or any other type of real estate, really put the word out there. You never know who might have a property that fits your criteria and by going direct, you’ll both be able to avoid the costs of working with an agent.
#2 – Know Your Costs
You might assume that by viewing some reports and running some numbers that you have the financial parts all figured out, however, this is rarely the case. In real estate, there are always unexpected costs that can and will come up. Plan ahead and set aside some reserves for the unknown events. Owning a vacant property is expensive without tenants. Do everything you can to get a tenant in there or flip the property as quickly as possible. Last but not least, be sure to set aside extra cash for maintenance and your yearly property taxes.
#3 – Set Realistic Expectations and Goals
Unfortunately, getting rich overnight in real estate is the exception, not the rule. Your expectations should be based on reality and not on some get rich quick story you read online. It takes time to really learn the ropes and to make money in the industry. Always set goals, but base them on a realistic outcome, not on high-hopes and long-shots.
#4 – Know Your Strengths And Weaknesses
Sometimes it pays to partner up when buying investment property in Chicago. You might be excellent at closing a deal but lost when it comes to marketing the property. Teaming up with those who compliment your strengths and weakness can be a game changer for many new real estate investors. Finding people to compliment your investment style will help you both to win much easier. You will both be able to flourish in the areas where you shine while avoiding the things you aren’t the best at.
#5 – Think Outside The Box When Buying Investment Property In Chicago
Consider properties of different types or in different neighborhoods. Unlike shopping for a personal residence, when you are shopping for an investment property, it is all about the numbers. You can look in areas you may not have considered before after a little research. You might be comfortable with single-family residential, however, you should be able to spot an amazing deal on a multifamily 5+ units should one happen to come up.
#6 – Build A Great Power Team
You won’t be able to do it all alone. You will need to have industry professionals you know and trust helping you with the deal. Develop relationships with agents, underwriters, wholesalers, cleaning companies and direct sellers. By having a company such as Global Abundance LLC in your corner, you’ll be buying investment property in Chicago directly, and at incredible prices!
#7 – Patience Is A Virtue
It takes time to learn the in’s and out’s of your market. The research might take you hours in the beginning, but as time goes on, you’ll be able to analyze deals right off the top of your head. Don’t give up if your monster payday doesn’t come in right away. Some of the best things in life just take a little time.