You have probably heard it before, investing in real-estate is among the best investments you could make. Usually, the value of real estate properties increases. It may sound easy, but beginners would usually find out that it is not that easy. It requires specific knowledge and skills- these can be achieved through research, planning and hard work.
Before you proceed in investing your hard-earned money in real-estate, you would have to consider several things first. For example, you would have to identify what kind of money you want to earn: short or long term. With short term you can earn a lump sum relatively quickly through flipping houses or wholesaling. With long term goals you can earn a steady amount over a long term, such as with rental properties.
If directly managing homes or rental units is not your cup of tea, then you could try getting a real estate property management group. They would be building or managing the property for you in exchange of a percentage of tenants’ monthly payments.
If it is your first time to venture in real-estate investing, then you would have to be aware of common beginner’s mistakes. One common mistake is speculation. Beginners would usually follow the media, buy a property and wait for its value to increase. This could be risky.
As mentioned earlier, real-estate investing requires research. Aside from that, you should also be prepared for the worst. If nobody buys the property, then you would have to think of other methods on how you could generate income from it. You could lease it, rent it and think about other exit strategies.
When property hunting, keep two things in mind: location and value. There are newly-developing places where real-estate could provide you with greater financial returns in the future—These properties will generally have a higher price. Also, be aware of the foreclosure rate of the area surrounding any house you are considering.
Real-estate investing is not a get rich over night program. It requires hard work and good marketing strategies. But, with success you can have a steady supplemental income.
Janus Real Estate Group * Heather Anderson * 972-765-3773
