Investing In Real Estate: Making A Good Investment
Investing in real estate is something that almost anyone can do. You need to do your research, find a great Realtor and make sure to not to make any rash decisions. Many people tend to think that real estate investing is easy money, and a lot of people end up losing when investing in real estate. This is why it is so important to do your home work and to be prepared when investing in real estate. Here are a few tips to get your started on making a good investment.
Build A Solid Team
Investing in real estate takes a team of people to be truly successful. Start by finding a top quality realtor who knows their markets and can help you can find a great home at a great price. Next you will also need a good mortgage broker to help you find the best financing possible for your investment. You will also need a good contractor. The contractor will help you determine your repair costs before purchasing a home and perform the work after purchase. If you find the right people to have on your team, you are well on your way to making a successful investment.
If you are embarking on your first investment property, going all in on a home that needs tons of repairs is not a good idea. Take time to get your feet wet with a low risk investment to start off with. A home needing only minor repairs will keep your risk down while you learn everything involved with investing.
Make Sure Your Plan Makes Financial Sense
If you plan on renting out the home, make sure that you can cash flow the home from day one. Know your local market and what home are currently renting for. If you plan on flipping the home, take the time to get to know every cost involved and what homes are selling for that will be similar to what your home will be when done. Don’t forget to add in your time. A $10,000 profit might seem good until you realize it took you four months and hundreds of your own hours.