I love investors, because like myself, they tend to nerd out over spreadsheets and let the numbers do the talking.
Because that’s a pretty awesome place to be financially, I meet a lot of aspiring investors who want to be in that world.
Below I’ll break down some indicators that you’re not ready, plus some ways to help you become more prepared for the investing world.
You Have Not Read a Single Book on Investing I know some people might push back and say they listen to podcasts or contribute to BiggerPockets forums, but I say having read at least one book on investing is important.
But, reviewing your finances will give you a good idea of whether or not your lifestyle reflects your goal.
But it doesn’t sound like a good way to prepare for an investment.
You Haven’t Talked to a Lender Yet Assuming you aren’t planning on paying all cash (and you likely shouldn’t, because paying all cash means you are buying one property instead of leveraging your money for multiple properties), you should talk to a lender.
The metric I use for my two rental properties in Denver is cash flow, because I value having someone else pay my mortgage on a property that is appreciating fast.
You Have Unrealistic Expectations About Your Market “I want a multiplex for $250k within two miles of downtown Denver,” and/or “Looking for off market properties that fit 1 percent rule, prefer 2 percent.” I get emails like this all the time, and while I understand where this comes from, and I admire the optimism, it needs to coincide with reality.
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