5 Essential Real Estate Investing Tips From Successful Investors
1. Find rental properties in emerging neighborhoods
Rental properties represent a great way to get involved with real estate investments. Emerging neighborhoods offer growth potential and tax incentives for buyers. Buyers that purchase properties in emerging neighborhoods maximize profits and ensure that their income covers their costs.
2. Diversify your investments
By considering investments in other states and cities you’ll have a large pool of available investments and ultimately better opportunities. Investing across a large geographical area also further diversifies your investments and protects your portfolio against the volatility of local markets.
3. Look into single-family rentals
Single-family homes are your safest bet for attracting the correct tenant. Everyone would love to live in a house. Some people just cannot afford to or do not want to own. The single-family home historically has over the last hundred plus years always appreciated.
4. Do your homework before listening to paid advisors
Stockbrokers don’t get paid for you to invest in real estate. There’s nothing in it for them, no commissions, and nothing to do. That is unless they want you to purchase a high-cost, non-traded REIT, but now you’ll know their true motivation. You need to do your own homework to decide if the potential cash flow from real estate is right for you.
5. Get to know your market
When investing in real estate, it is important to learn about and become an expert in your selected market. Being well informed on the current trends, including any decreases or increases in the average rent, income, interest rates, and even unemployment/crime rates will allow you to recognize the current market status and plan for the future.
Considering buying or selling a home or property soon? Contact Tim Feuling, Listing/Buyers Agent 858-750-9176
Comments ( 2 )
6) Never buy site unseen. Make sure to look at the property in person before you commit.
7) Avoid buying on a busy street as it will make it harder to sell in the future.
8) Make sure you have a large reserve fund in case things go wrong after the closing, because they always do, but the bigger your reserve fund, the smaller the problem will be (as dictated by Murphy).
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