Is Investing For You?

Nearly everyone wants to make money. Before you decide to choose real estate as an investment strategy, there are a few things you should think about:

Assess Your Finances

Yes, there are plenty of so called gurus who will tell you you can start investing in real estate with no money. It is true, but you may end up ruined.  You need to be financially responsible and disciplined to successfully invest in real estate.  Don't push your limits.  Have money on hand to cover contingencies and emergencies.
 
Find out what your credit score is at www.myfico.com.  Most lenders are going to run your credit score to determine whether you're a good credit risk.  All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.  FICO scores range from 300 to 800, with higher being better. Typical home buyers likely find their scores falling between 600 and 800.

What can you do about your FICO score?  Unfortunately, not much.  Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes.  The most important thing is to know your FICO score and to ensure that your credit history is correct.

Assess Your Talents, Inclinations, and Resources:

• Determine how much residual income you generate each month.  Building wealth requires living below your means.
• Real estate investing will require time. How much time do you have to spend each week?
  
• Do you have handyman skills?  If so, you can save a lot of money on minor repairs. 
  
• Do you like looking at properties? 
  
• Will you be comfortable working with tenants?  Enforcing your rules?  Collecting the rent? 
  
• Are you good with numbers?