Should You Invest in Real Estate?

Investing in Real Estate takes knowledge, experience, and time….a lot of time.

Because of the steep learning curve, getting started as an investor is can be a daunting task for most people. When considering the multitude of factors that go into deciding which property to buy, most beginners suffer from analysis paralysis.

Consider the following questions that must be answered prior to making an investment:

1. Is now a good time to buy?
2. What neighborhood should I buy in?
3. What type of property should I buy?
4. How will I finance it?
5. How do I determine how much it is worth?
6. How much will I need to put down?
7. What is I don’t have enough? Where can I get more?
8. What repairs will it need?
9. How much will the repairs cost?
10. Who will do the repairs?
11. How long will it take to do them?
12. How will I handle it if the repairs cost more than my estimate?
13. How do I resolve a dispute with the contractor that did the repairs if I’m not happy?
14. How should I hold the title?
15. And on, and on….

I think you probably get the idea.

Let’s assume for a moment that you successfully navigate your way through the selection process, find a good property, and close. The ‘real’ work is now just beginning. Welcome to the world of property management.

If you are planning to hold a property for a long time, you are going to need to be an expert in property management. If you are not, more than likely your tenants will know more about it than you, and you will come out on the losing end – frustrated and poorer. Here’s a few more questions you’ll need to answer:

1. What type of tenant will I need?
2. How do I find them?
3. How do I select the right one?
4. How much will they pay?
5. How will I manage them?
6. What type of insurance do I need?
7. What happens if they don’t pay me?
8. What do I do when the break things? (and they will)
9. How do I resolve a dispute?
10. What do I do if they move other family members in?
11. What do I do if they sneak pets in?
12. What do I do if their dog bites someone?
13. And on, and on…

By now you might be starting to think that investing in real estate is not for the faint at heart – and you’d be right; however, that is not to say that you shouldn’t invest in Real Estate!

Real Estate has always been one of the best investments on the planet when done correctly. Given the massive declines in the stock market, the recent bout of dishonesty in the executive ranks, and the extremely low interest rates in today’s market, Real Estate is an extremely attractive alternative. Better still, prices per square foot for investment property haven’t been this good in a very, very long time.

So, where should you start? Excellent question.

I would suggest that you begin by reading some of the case studies we’ve published here on the site.  You should also start attending Real Estate investment club meetings; just be careful that you don’t invest with someone before thoroughly checking them out. There are sharks in the water that will take your money if you aren’t careful.

With that said, there are also some very honest investors for you to work with.

If, after you’ve done some homework, you’d like to learn more about Kalomar, give me a call at 760-840-7172 and I’ll answer any questions you like. Prior to calling, feel free to Google me (Trent Dyrsmid) and you’ll find all sorts of information about my past business activities (as well as the sports that I enjoy!).

I look forward to hearing from you.

Trent Dyrsmid
Founder
760-840-7172