With a successful career in property management and real estate, Barry Hers offers his tips to those who want to invest in real estate.
“All too often, new investors begin their interest in real estate by speculating on properties without all the facts,” explained Barry Hers. “Your first investment should always be in a property that can generate a cash flow stream, like a middle-class rental property. By starting here, a new investor instantly gets a return on their investment.”
Barry Hers receives a lot of questions about how much time an investor should put into their first property. According to Barry Hers, the biggest question you need to ask is what is the long-term goal of my first investment property? Is it for rent, will you sell? Answering these questions first will give you a good understanding of just exactly what you will need to do with repairs, upgrades, or anything else that will cost money going into the property. There will be unforeseen costs and risks involved with each property, knowing what they are upfront and understanding each of your goals will help you make the best possible decision for yourself and any of your investment partners.
Barry Hers recommends always having a plan with each property you are considering, both long term and short term. This will help with making a business decision now and in the future.
Barry Hers also recommends that first-time investors always work with experts.
“You will need to know the market inside and out, so take your time to understand it, explains Barry Hers. “You need an expert that’s local and knows the area well. It also helps to find great property managers who will be bluntly honest and offer you objective advice before moving forward. Budgets will make or break your career in investment,” explains Barry Hers. “Always establish the baseline you are willing to pay for a property, and just exactly what you are willing to invest in each one to increase its value.”
It will always be easy to get off track and spend too much or too little if you aren’t planning everything. It’s important to also pick properties that are close to you so that you are able to work on them if something ever arises that needs repair.
Barry Hers helps investors and tenants across the state of New York, with over two decades in real estate.