How to Start Investing in Real Estate: A Step-by-Step Guide

If investing is something new to you, here is a step-by-step guide to help you step foot into real estate investing.

• Determine your personal investment goals: short term or long term? 
• Assess your financial situation to discover what types of financing options are viable for you: current income, expenditure, credit score, savings 

• Educate yourself through undertaking real estate investment and the different property types (benefits, costs and potential risks)

• Clearly define your investment criteria that aligns with your goals: location, property type, budget, expected returns
• Develop a risk management strategy: evaluate and reduce potential risks 

• Connect with professionals and experts in the real estate industry that may be able to provide valuable and specific guidance 

• Explore your financing options to discover the best financing investment option: research and compare mortgage lenders, banks and other financial institutions 
• Obtain a pre-approved letter to confirm your readiness and competence

• Identify prospective investment properties through taking advantage on online listings, connections with experts and exploring off-market opportunities 
• Conduct thorough due diligence: closely examine property conditions, rental potential, location, market trend, and any related legal or financial regulations

• Submit an offer: determine a competitive offer price based on personal research and analysis
• Negotiate terms: negotiate with seller to reach a mutual agreeable term

• Finalise financing: complete loan application, provide relevant documentation, secure the mortgage
• Conduct a title search: hire a title company or attorney to perform a title search and secure title insurance to ensure property has a clear title
• Close the transaction: coordinate with relevant parties to finalise the purchase and transfer ownership

• Set up property management: decide whether to self-manage or hire a third party to manage the property 
• Monitor performance: conduct regular review of financials, occupancy rates, rental income, expenses and market conditions to assess investment performance

• Once you gain experience and confidence, you can consider expanding and diversifying your portfolio to generate a greater financial return