Investing in real estate can sound like a great way to build wealth while also having influence in the way your community is shaped. But when it comes to making the actual investment, the process can be really daunting. After all, it can mean investing a significant amount of cash.
Craig Markhardt is the President and CEO of CAM Companies.
He joined us to break-down the process of property investment, so you’re prepared when you decide to make that leap.
Craig’s tips for Planning for your first investment property
Planning for your first investment property
- Write down your goal of being an investment property owner – a few examples:
- Additional income on a monthly basis
- Long term appreciation in value
- Buy, fix and sell
- As a hobby
- Answer the question, Do I want to be a landlord?
- Owning property is not a passive investment like Walmart stock
- Are you good at fixing things or willing to learn?
- Do you like to help people and be around them?
- Should you do this on your own or with a partner or spouse?
- great way to build friendship or destroy a friendship, but two are often better than one
- Urgent fixes
- Big decisions
- Help with remodeling
- great way to build friendship or destroy a friendship, but two are often better than one
- Find resources to help buy your first one
- Fanniemae.com has rules and guidelines
- 20-25% down payment needed
- Can finance up to a four-unit property and be your primary residence with less down payment
- Rental income worksheets available as well as loan guidelines
- Can finance up to 10 properties on a 30-year fixed rate home loan
- Fanniemae.com has rules and guidelines
- South Dakota state website – sd.gov – laws and rights
- Title 43 – Property Law
- Tenant Rights
- Landlord Rights
- Title 43 – Property Law
- HUD – renters guides and anti-discrimination rules/laws
- Biggerpockets.com
- Community of property investors willing to help
- Resources for tips and success stories, and pitfalls to avoid
- Podcast with veteran investors sharing their knowledge
