The Market: Is it Ready for My Investment?

by Robin Anderson Real Estate 01/10/2021

Photo by Edar via Pixabay

You’ve been considering an investment in real estate but are you really ready? Putting your money into something you haven’t done your homework on could be detrimental. You may even have all the tools, but are still straddling the fence. How will you know it’s time? Here are a few signs that indicate you have some ways to go:

Long-term Investment Strategy

If you don’t have one of these, you aren’t ready. Although flipping homes and other elements of getting into the real estate game may seem attractive, all the income coming in is tied to you doing “work.” When you stop doing it, the money stops to. An actual investment strategy means once you’ve found the home, did the work and found the tenants, the income continues rolling in. That means your assets continue to grow year after year.

Finances Need Work

Are your finances in order? That means you’re living below your means and are saving a good amount of your income. How’s your rainy day fund? If you don’t have at least three, six to a year’s worth of expenses that you can quickly get to, investing in something that may not give you a return on your investment doesn’t really make sense.

Insurance

Do you have insurance? It’s important to have at least a term life insurance policy that’s 10 to 12 times your income.

Credit

Unless you have the cash to pay for your investments outright, you need to have a high enough credit rating that allows you to get the financing you’ll need. While your credit doesn’t have to be perfect, it should be good enough and showing indications of improving over time.

Capital

Capital is the name of the game. You should have access to enough capital that will allow you to secure long-term financing to get those properties when you want. Take a look at your risk profile. Purchasing high quality, low-risk property instead of maxing out the capital you have can make a difference. If you don’t have the capital, you’re not ready.

While you’re giving these areas some thought, it’s also a good thing to look at the market. While there are always ongoing talks about a recession, consider the stock market. Which one is riskier? Market stats are usually based on the entire country, but real estate stats are only based on specific cities, properties and neighborhoods. That means even if a recession hits, each property is impacted in its own way.

It’s time to study how to beat a recession if one hits and know the fundamentals. If you have a property that provides significant cash flow now, chances are it will during a recession as well. If you have quality properties in high-demand areas, you can withstand a market downturn. The goal is to make a recession an opportunity if you can. It's time to get things in order. If you purchase the right property in the right area, you’ll be just fine. 

About the Author
Author

Robin Anderson Real Estate

“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson 

Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit

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