How to Take the First Step in Real Estate Investment - Best process to start!

 Real estate is an area of investment that will hardly lose its value and will continue to increase due to various reasons. Development in the country, international events and other occasions that are hosted in a country and the growing economy are some of the reasons that real estate investment will continue to make money for you.

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 What to do first

Just like any other subject that you are interested in, be it an investment, piloting, entrepreneurship or even motherhood - your first step should be to gain some basic knowledge about the subject! And the best way to do to is to read books articles and watch videos on the relevant subject. However, if you were to only read books, articles and magazines you will only gain theoretical knowledge so it is important to talk to people in that industry to pick their minds about experiences and good companies such as John Keells Properties. Speaking to some experienced real estate investors is the second step so you can learn about their journey, find out about the mistakes they made in the process and also gather information about what they did to overcome any hurdles. For any beginner, the best way is to follow a step by step guide given by someone experienced so they can follow the steps but also be cautious of any problems they might face.

 Identify your financial stage

Most investors want to be financially independent which means your investment will bring in enough money for your expenses and savings. While that is the peak, to reach that you need to identify steps that will increase your savings and before any of that you need to know where you stand. Survival, stability, growth and income are the stages from the lowest to the peak.

Choose a specific real estate investing strategy

There are many different investment strategies and while those will have different beneficial aspects they will also have disadvantages so you need to find the best option for you depending on your financial situation.

Pick a target market

Investing in the local market is generally advisable since you will have access to finer more intimate details. If you can afford to, try and go for luxury apartment projects in Sri Lanka – which are a better option for investment.

 Decide your investment property criteria

Create a written document about the target property and the target terms which will include details of numbers now and for the future. This is what you will share with potential partners and investors.

 Build your team

Real estate investment cannot be done alone, and you need a team to run the business for you. While you may not employ these people you will have a team which includes a property manager, attorney, a certified public accountant, lenders, agents, electricians, plumbers and other individuals.

 Line up financing

If you are starting at the bottom or you will find that you will need to get a loan from a bank, private lenders or other means and this is important to be sorted out before you can proceed further.

 Raise cash for down payments and reserves

While you cannot completely function on a loan since you need to have some money in your reserves there are some options you can look at such as saving, downsizing, partnering and borrowing to secure your reserves.

 Create a plan to find deals

You cannot stop looking for deals once you have invested you have to constantly keep looking at good deals to see where you can invest in next

 Schedule your time and prioritise the next steps

While you keep yourself updated you also need to make your plan for the next steps so you know when to move into another investment when to move out of the current investment and to keep looking out for ways to broaden your investment plan.