Buying an investment property is a great way to earn extra income and build long-term wealth. However, there are many considerations that go into buying your first investment property, especially in the current real estate market.
16. Should I Find a Real Estate Investing Partner? If you would like to invest in a rental property but don't have the money (or expertise) to make it happen, you might want to consider a real estate partnership. In simple terms, an investing partner helps finance the deal in exchange for a share of the profits. Keep in mind that a partnership isn't an "easy button," and it doesn't get you out of any work. You still have to do your homework, practice your pitch, and be ready to show prospective partners that the investment makes financial sense.
17.How Do I Find a Real Estate Investing Partner? You don't need a Wall Street connection to find a real estate investor with which to partner. Instead, you can ask your own network of family and friends, find a local real estate investment club, consider real estate crowdfunding, or search for social media groups that target real estate investors.
The Bottom Line is...be realistic in your expectations. As with any investment, rental property isn't going to produce a large monthly paycheck right away, and picking the wrong property could be a catastrophic mistake.
Still, rental properties can be a lucrative way to invest in real estate. For your first rental property, consider working with an experienced partner. Or, rent out your own home for a period to test your proclivity for being a landlord.
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