Property investment can be lucrative but it can also be brutal to newbies. You need to have the skill to read the real estate market, identify and seize good deals, and grow your listing by leveraging on other people’s money. But where do you start? For many people the farthest they were able to go in their property business aspiration is look through property listings – wishing and praying they can buy their dream property.

There is a better way. Start with these three questions:

Do you have the means to get into it?

It is not just having enough money. Going for a loan can also be a very good plan especially if the property can easily pay for itself (good debt), making it a profitable investment.

Can’t afford it yet? Have a plan to build up capital. This growing fund can come in handy when you see the right property in the future. Track your money, pursue a simpler lifestyle, save and then improve your credit rating by settling debts if you can afford to do so. You will never know when you will need your bank’s nod for a great property deal!

Why are you into property investment?

Know your purpose why are you into property investing. When I bought my first property it was just for the heck of it – I had money to buy so I did. I never made money on my first one. When I secured my second property, I earned a little money on the side. When I started asking myself how the two properties were different, I was hooked. One inquiry led to another until I was able to formulate what I wanted out from my real estate investments.

Looking back and knowing where I am now with dozens of properties earning passive income for me, it would have been best when I knew why I got into the business before I paid for my first purchase. It would have given me a good head start.

No regrets though. Properties for me are long term investments that are ideal for people who are pursuing business freedom. If this is you, explore the possibilities with my book written especially for those who are into property for passive income.

Do you have what it takes to succeed in the industry?

You need to start small and learn as much as you can on your first deal. There are many people who are too eager to get the biggest deal they can get their hands on. Remember, big deals have big risks. Start in a level where you can afford to make mistakes. And then enrich your knowledge by dealing with tenants, contracts, settling disputes, home maintenance, property taxes, and etc.

Make mistakes with your smaller investments. Remember mistakes are the best teachers. If you want to get into properties don’t be too eager for the quick, big bucks. Profits will come. The important thing here is that you can sustain profitability by having the wisdom to navigate property investment blunders as they come.