With over 20 years of investing experience in addition to his award-winning REALTOR® career, Dan has learned a lot of great (and not-so-great) tips for investing well.
Today, Dan is sharing 6 things he would NOT do if he had to start over today with his very first investment property.
1. DON’T waste time looking for the perfect property!
Whether it’s condition, location, or even price, no property will be perfect. ” I always say ‘Ready, Fire, Aim,’ rather than ‘Ready, Aim, Fire,'” Dan shares, “Because if you try to aim forever and ever, you’ll never pull the trigger and get that first investment property under contract.” Getting started sooner than later is critical!
2. DON’T put 20% down on your first property!
You don’t need to save 20% of your down payment to get started. There are a lot of buying options that allow for as little as 3 – 3.5% down, helping you get started quickly. “Later on down the road,” Dan explains, “It’s a great idea to have as much equity in a property as possible. But when it comes to getting started, waiting to save 20% is not wise.”
3. DON’T take advice from someone on a different path than you!
Investing in real estate is a hot topic these days, and many people may feel unjustly qualified to give advice. When seeking advice, make sure to find experts investing in homes similar to what you’re looking for and even in your preferred area. Aligning yourself with trusted experts is the best way to start your investment journey well.
4. DON’T ignore self-directed IRAs and other helpful tools!
Do you have a 401K from a past job that’s just sitting around? You can take that money and move it to a self-directed IRA, allowing you to use the money to invest in real estate (and not worry about what’s happening on Wall Street!).
5. DON’T ignore leveraging creative financing!
Creative financing is a great way to make sure you can started in real estate early. Tools such as owner financing bond for title wholesaling, and other strategies lower the barriers of entry and let new investors get in the market without a traditional bank loan.
That’s why it is so important to work with an experienced local lender. Lenders like the ones we work with at Hamilton and Company know all the details of these creative financing strategies and will help you pick the path that benefits you most.
6. DON’T aim too low!
This is the number one thing to consider as you start out. What are you goals for real estate investing? How are you going to use real estate investing to help you achieve your goals?
“When I first started investing in real estate, I didn’t really think as big as I do now. Now that I’m watching my portfolio grow,” Dan admits, “its easy to see what’s possible and go for it.”
The bottom line
There’s a lot of advice floating around the internet for beginner real estate investors. The biggest advice Dan gives? Get in quick and then take your time growing your portfolio, educate yourself by aligning with trusted experts, and have fun!
Dan loves using his expertise as a REALTOR® and investor to analyze properties, and he’d be happy to help you do the same! If you are interested in beginning your real estate investment journey but don’t know how to start, give Dan a call; he’d love to advise you through the process.
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7.