If you’re thinking about investing in a Income Producing property, experts say the time is now…… low prices combined with low interest rates make this the best time in years to become a real-estate investor.
The Real Estate Market is starting to recover
When the money is cheap and property values are moderate…………………The time to buy is now.
Below are some steps to help make you a savvy investor:
Know your opportunities. All investment properties are not the same, it’s important to determine what type of property fits you. Do you want to become a landlord for the long term, or would you prefer to get in and get out quick, and move on to the next deal? Are you interested in multifamily, office buildings, and other commercial real estate, or do you to prefer to try your hand at development? I would recommend to start out small,( maybe residential), and grow from there.
Let Experience work for you. New investors should find an experienced real-estate agent. The more familiar they are with investment property deals, the better the can find the best opportunity for you. Find a broker that is looking to make money with you for the next thirty years, and not just trying to sell you the first thing that comes along. Another idea is to work with an agent or real estate investor. Learn from their mistakes. In many circumstances, a real estate developer or investor may be willing to work with you in exchange for the capital you provide. If you sell tooth brushes, you might not know everything you need to know right out of the gate. Protect your hard earned capital with an experienced professional while you learn the ropes.
Location, Location, Location. If you buy a property to rent, location should be the first thing to consider after budget. Stay in well populated “high Traffic areas”. You may have to pay more money for the property, but the return will be exponentially better. Look for areas with low crime rate. Have an exit strategy in mind. If you are planning on selling the property in 30 years, you can find property that is on the fringe of the development area versus if you are selling in 2 years. Use inside knowledge to gain a competitive advantage, study your area………know your market.
Have the money in place before you go shopping. Know how much you can afford before you go looking for property. Money can be made in real estate, but it can also be lost very quickly. Have a budget already in place with a “rainy day” fund. If the property is projected to be rented every month, plan for a vacancy period. I usually estimate 25% vacancy period. Many people would advise that is too conservative. I like to be on the side of caution. “You cannot lose money, you have not invested”. If the deal works using very conservative estimates, then it will mitigate some of the risks with investing.
The trick is to plan, research, and execute!!!!!!!!!!!!!!!!!!
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