How to Fund Your First Real Estate Deal

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How to Fund Your First Real Estate Deal

For many entrepreneurs, the American dream is about seizing real estate investment opportunities that pave the way to financial freedom. In recent years, as the market has rebounded, more individuals are eyeing real estate deals as their pathway to success.

“With prices down, interest rates at record lows, and a shift towards renting, now is an ideal time for real estate investment,” says Barbara Corcoran, owner of The Corcoran Group, New York’s largest real estate company. “Most new millionaires emerge during real estate downturns.”

However, finding a lucrative real estate deal is no easy task. It requires savvy decision-making from the outset, setting the stage for long-term financial gains. Here’s how real estate entrepreneurs can navigate this landscape and secure the right investment:

Define Your Vision:

To leverage the real estate market effectively, investors must have a clear vision and set achievable goals. This acts as the blueprint for your investment journey, outlining what you seek, your financial capacity, and expected returns.

Identify Crucial Aspects:

When scouting for a great real estate deal, focus on these three crucial aspects:

  • Solid Cash-On-Cash Return: Aim for properties that offer a fair cash-on-cash return, akin to other investment avenues like stocks or bonds, ideally around four to six percent.
  • Manage Risk Effectively: Conduct thorough due diligence to minimize risks. Consider fee simple ownership for added security, where you have complete ownership rights over the property.
  • Efficient Time Investment: Opt for properties that don’t demand excessive time and effort. Whether managing directly or through a property management firm, prioritize properties with low maintenance needs.

Tips for Success:

Than Merrill, CEO of FortuneBuilders, shares key strategies for securing the perfect real estate deal:

  • Start Small: Begin with a solid initial property, leveraging local knowledge and various resources like MLS listings and online tools.
  • Calculate Your Margins: Crunch the numbers meticulously, factoring in all expenses from insurance to operating costs, aiming for a healthy return.
  • Choose the Right Lender: Partner with reputable lenders like Infinity Capital Finance for tailored loan solutions that align with your investment goals.
  • Decide Wisely: Opt for effective property management early on, balancing the benefits and costs to ensure long-term success.

Ready to turn your real estate vision into reality? Pre-qualify for a loan with Infinity Capital Finance and take the first step towards your investment journey.

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Sean Richway

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