The Step-by-Step Guide to Investing in Real Estate in Silicon Valley
Whether you want to buy your first investment property in Santa Clara County or you’re working on your second, third or tenth, check out this step-by-step guide to investing in real estate in Silicon Valley to get moving.
The Step-by-Step Guide to Investing in Real Estate in Silicon Valley
First things first: You need goals. Write down your goals and put them somewhere you can see them regularly – that way, you always know what you’re working toward. Even better, when it’s time to make a decision, you can ask yourself, “Does this help me toward the pursuit of this goal? What about this one?”
From there:
- Decide whether you want to make real estate investing your full-time career
- Plan for continuing your education on real estate investing
- Choose whether you want to be active or passive
- Pick an investment strategy
- Start attending networking events
- Look at important indicators that can tell you whether to invest in a certain community
- Begin the process of buying a property
Here’s a closer look at each.
Step #1 in Investing in Real Estate in Silicon Valley: Decide whether you want to make real estate investing your full-time career
Not all investors pursue investing full-time. You can make it a part-time strategy, particularly if you’re still working at a nine-to-five job or if you don’t have the resources to dive in with both feet. You may also choose to do something smart that many first-time investors do: Buy a multi-unit property, live in one unit, and rent out the other(s).
Step #2 in Investing in Real Estate in Silicon Valley: Plan for continuing your education on real estate investing
Like any other field, you have to keep up-to-date on industry trends so you know what works (and what doesn’t). If you want to keep making money in real estate, it’s up to you to continue your education. Whether that means learning all the ins and outs of every aspect of real estate transactions or something else, you should develop a plan for how you’ll learn. You may want to find a mentor, work closely with a real estate agent who understands the system, or take formal classes on real estate investing.
Related: 5 tips for vetting tenants in an investment property
Step #3 in Investing in Real Estate in Silicon Valley: Choose whether you want to be active or passive
Active investors are the boots-on-the-ground type. They’re making in-person improvements to properties, engaged with tenants, and handling day-to-day business. Passive investors own a unit, hire a property manager and take a more hands-off approach.
Step #4 in Investing in Real Estate in Silicon Valley: Pick an investment strategy
There are several real estate investment strategies you can choose from, including:
- Long-term buy and hold
- Short-term buy and hold
- Wholesaling
- Flipping
- Buy, Rehab, Rent and Refinance (BRRR for short)
Step #5 in Investing in Real Estate in Silicon Valley: Start attending networking events
Getting to know other investors can give you the inside track on the industry. You should attend networking events and get to know other professionals, too, including lenders, insurance agents and contractors. That way, you’ll have connections to the services you need when you need them.
Related: Should you buy a vacation rental property?
Step #6 in Investing in Real Estate in Silicon Valley: Look at important indicators that can tell you whether to invest in a certain community
You’ll need to do a lot of homework to be successful in real estate investing – and when you start looking at prospective areas to purchase a property in, you should evaluate:
- School districts
- Infrastructure
- Employment rates
- Rental rates
Step #7 in Investing in Real Estate in Silicon Valley: Begin the process of buying a property
After you’ve done your research and you’ve developed a solid plan, it’s time to start the process of buying your investment property. That’s where we come in, we’re here to help. If you live anywhere in Silicon Valley, click here to set up a free, no-obligation strategy call.
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