In real estate investment, there’s a lot going on between “I’m going to do it” and “I did it!”
For passive real estate investors hoping to step out and purchase a rental property with the help of a turnkey investment provider for the very first time, you might be wondering what you’re about to get yourself into. We’ll save you the actual details of what goes on with your provider—if you’re curious, we’re always available for a one-on-one call!
What we’re hoping to do here is prepare you to tackle the world of real estate investment head-on: minimizing mistakes, reducing risk, and preparing you for a future of financial freedom.
The Passive Investor’s 5-Step Action Plan Before Buying Your First Property
Outline your goals.
Every real estate investor needs clearly defined goals for themselves. Once you acquire this first property, what will your next steps be? What are you working towards? Do you have your eye on other markets? Do you want to stay in the same market? How many properties do you want to acquire this year? What are your fiscal ambitions for the year? How about for the next five? Long-term?
Sit down and brainstorm. Write it all down. If you don’t know how realistic it is or where to start, your turnkey provider is an excellent resource to bounce ideas off of.
Related Article: The Best Plan for Successful Out-of-State Real Estate Investing
Develop a routine.
Investing in real estate, even at its most passive, is going to take some time out of your schedule. You need to intentionally carve out time in your schedule going forward to dedicate to your investments.
What does that time look like exactly? It can be reading up on new strategies and economics, connecting with other investors online, researching new markets, or anything outside of the regular monthly updates you’ll be receiving from your turnkey partner. This is time to enrich yourself and grow more savvy in the business.
Investigate markets of interest.
Now more than ever, markets across the nation are diversified. They’re rising and falling, growing at different paces, and poised for explosive growth...and investment opportunity. For investors, it’s crucial before beginning to research any market you’re considering investing in. You have to consider where it’s been and where it might be headed.
This is something you must do before buying in any market, but it’s especially important before your first purchase.
Set up avenues for your new real estate business.
As a real estate investor, you’re running a new business. Many investors choose to set up an LLC to accompany their new investments as a means to limit their liability and separate their finances, while others just open a separate business bank account. Regardless, it’s helpful to ensure that you have an organized system in place for managing your investments and newfound streams of revenue. Consider:
- Bank accounts
- Physical and digital filing systems for tax purposes
- Phone systems and voicemail
- P.O. boxes
- Website and social media accounts
Some of these things seem like “housekeeping” and potentially unnecessary, but it’s better to have them in the beginning than have to untangle your real estate investment business from your personal life down the line!
Communicate with your turnkey partner.
Lastly: communication with your turnkey partner. As the investor, you know best of all what your goals are for your finances and your investments. Your partner wants the best for you, is there to support your vision. At Memphis Invest, it’s our goal to invest in our clients—we want to see them succeed, and we achieve that not only through excellent services, experience, and quality properties in great markets but through the meaningful relationships we form.
Ultimately, passive investors are putting their investments in the hands of their turnkey providers and property managers, so communicating their goals, desires, and needs is paramount to the success of the relationship.
After you’ve laid out your vision and set up the framework for successful real estate investing, your turnkey provider can work with you to secure financing for your properties and move forward with the beginning of a great career as an investor.
Ready to get started? Make the call.
