Investing in Real Estate — Start Small go Big

Many people know that I earn my money with real estate. I do everything possible around real estate: trading, brokering, renting.

Again and again I am asked, do you not even have a property for me or where can I find a suitable property? How does a real estate investment actually work?

Since it concerns all of us, I thought I would make a small summary for the first steps.

Before you start thinking about real estate investments you need to do your homework.

What does this mean?

First we need to look at our finances.

It is important for every investor to have his private finances under control. That means first one thing:

Your income is greater than your expenses.

This sounds super simple, but it is one of the most common bottlenecks. I know how it is. The new iPhone is coming out, I still want to buy the beautiful furniture for my new apartment or my clothing consumption is simply too high.

I often get answers like, no, I have my spending under control, my fixed costs are just so high. What a pity isn’t it.

This is exactly where we come to a crucial point. We should not only look at our variable costs but even more urgently at our fixed costs and above all analyze them.

You know how high your fixed costs are? Congratulations you are already one step ahead. You don’t know? Make a table and compare all income with all expenses.

Do you come up with a negative amount? Cancel contracts, buy a smaller car or get rid of it completely, change your cell phone contract, find a cheaper apartment.

Without a surplus of income NO investments. Without investments no wealth creation.

It does not depend in this state on the quality of the investments. It depends first on the fact that your income exceeds your expenses. Permanently.

The moment you achieve this level of financial seniority you can start thinking of doing financial investments.

So, what would be the first step if you want to invest into real estate?

I recommend all interested parties to get an exact overview of the market in which they want to buy a property.

It is important to choose a region and then to research it. Is there a constant population growth there? Are there many good employers in the region? Is the region trend-setting or rather on the downward trend?

Once I have identified a region of interest to me, should I consider how to get exciting real estate?

There are basically two ways. Either I talk to a real estate professional who helps me find suitable properties or I do it on my own.

However, I recommend that future real estate investors work with a real estate agent or someone who has proven to be a successful person in this field. This often prevents wrong purchases and saves a lot of time.

There is one shortcoming. Usually, I accept higher costs in the beginning. But I have a relatively carefree investment for my future.

To sum it up, the first and most important step is to organize the private finances. This often includes restricting or eliminating certain expenses. The next important step is to acquire some knowledge and start looking for properties or suitable consultants.

I wish you success in your first steps and good investments.