If you have been thinking about investing your hard-earned money in real estate. There are some essential things you need to keep in mind.
While there is a lot of money to be made in the real estate market, there is also a lot to be lost.
I can’t think of a single person in this world who would enjoy experiencing a loss on investment. I’m sure you’re no different.
There is no way to guarantee a successful investment. However, there are some things that you can do to improve the chances of a profitable outcome.
When it comes to investing in real estate, there are some key factors that you need to keep in mind. The following are the top four examples.
Before we jump into the example, one of the key ingredients is to work with a professional realtor or real estate agency. They will be able to help you find properties according to your specifications. They will also know the city or town and all of the rules or specific ordinances that you would need to know.
If you are looking in the Jackson Hole Wyoming area, we highly recommend you contact Prugh Real Estate LLC.
Making a wise decision when it comes to the location of your property is paramount. All too often, investors find what they think is a perfect investment only to find out later that the property is in a terrible location. Don’t become one of these investors!
Research the location of a property before you even consider putting a dime into an investment. Trust me; this will help you avoid a huge hassle and will also spare you from a bad investment.
Want to learn more about picking the perfect location? LOCATION LOCATION CONNECTIVITY by JAMES CARLINI can help! https://www.amazon.com/LOCATION-CONNECTIVITY-JAMES-CARLINI/dp/0990646041/ref=sr_1_2?ie=UTF8&qid=1491331973&sr=8-2&keywords=investment+property+location
Rental Vs. Outright Sale
Are you going to sell the property or run it as a rental property? This is something you should have determined before purchasing a property. While it may be true that renting, a property creates a steady cash flow; it can also come with some downfalls as well. For example, maintenance expenses, having to chase payments, and sometimes even property damage. If having to deal with these types of issues sounds like something you would like to avoid, selling the property outright would likely be a better option for you. However, if you’re not afraid of a lot of hard work, rental properties can be the gift that keeps on giving! I highly advise that you learn as much as you can about rental properties before taking one on. Learn more about it with The Book on Rental Property Investing by Brandon Turner. https://get.biggerpockets.com/rentalbook/
Be Careful With Loans
It’s not uncommon for people to take out loans when purchasing investment properties. It’s entirely okay to do this but finding the right mortgage is essential. The last thing you want to do is jump on the first loan you qualify for. Often, when investors do this, they find themselves trapped in a financial nightmare.
It’s also vital that you think long and hard before ever taking out a short-term loan. After all, these loans are often accompanied by insanely high-interest rates. Make sure you will be able to pay your loan off quickly or else you will face specific financial consequences.
Luckily, you can invest in real estate with little to none of your own money. Learn how to do it with The Book on Investing in Real Estate with No (and Low) Money Down by Brandon Turner. http://get.biggerpockets.com/nomoneydown/
Know How To Value A Property
Investors that know how to properly value a property tend to be successful and also seem to be able to see the most substantial returns on their investments.
Don’t be fooled by the price tag on a property for sale. A real estate agent can put any price they want on a property. That doesn’t mean that the property is worth as much as they are asking for. Knowing how to spot overpriced properties will help you avoid making a poor decision.
On top of that, the ability to accurately value a property will help you find fantastic deals where a home or business is listed for much less than it is worth!
Learn more about how to properly value a property with The Unofficial Guide to Real Estate Investing (Unofficial Guides) by Spencer Strauss.