There’s no doubt that Real Estate remains one of the top investment opportunities for 2017, especially in light of natural disasters like Hurricane’s Irma and Harvey because, no other investment opportunity can offer you the same ROI that Real Estate can.
If you’re just getting started with investing in Real Estate this article will offer you several tips which you can use to get started in Real Estate correctly:
1. Don’t Be Too Eager
When looking for your first investment property, it’s critical not to “chase the deal.” I often see first time investors overpay for property because they are so excited and want to get started. Always know your numbers, and never exceed the right purchase price during the excitement of an auction or when negotiating with home sellers. – Jeremy Brandt, WeBuyHouses.com2. Spend Time At The Property
Sit in your car outside of the property from 6 a.m. to 9 a.m. and 9 p.m. to midnight before you commit to buying it. You will see what is really happening at the building and in the neighborhood during those times. – Lee Kiser, Kiser Group
3. Check The Property’s Value
Anytime you purchase a property below the County Appraisal District, chances are you have hit a home run. Of course other factors come into play… repairs, updates, etc. However, follow this method and you will have the winning score. – Angela Yaun, Day Realty Group4. Buy With Your Head, Not Your Heart
First-time investors don’t have the luxury of purchasing an investment property on a “gut” feeling. In fact, you probably need to buy on a bigger margin to account for all the things you know, the ones you don’t know and a buffer above and beyond that. Buying investment property can be expensive, so one or two bad choices can take you out of the game. Only buy if the numbers really make sense. – Tracy Royce, Royce of Real Estate
5. Focus On The Location
As a first-time buyer of investment property, the key tenets of real estate are location, location and location. If you buy an asset that “carries” itself, i.e. pays for taxes, insurance and maintenance plus provides some free cash flow, the chances are, given decent duration, that the appreciation will provide good investment returns from opportunities to refinance, higher rental incomes and sale prices. – Ridaa Murad, BREAKFORM | RE
6. Get Your Numbers Right
Too often, I see new investors purchase a flip deal without leaving room for error. In a market that’s been hot for a while now, real estate wholesalers, agents and brokers have no problem selling you deals that don’t make sense. Buy flips where your all-in cost is less than 68% of fair market value. This way, if the market does correct, you have the best chance for a clean exit. – Abhi Golhar, Summit & Crowne
7. Always Be Patient
Real estate is a cyclical industry. Even if asset prices were to fall, you don’t necessarily lose money/profit on the investment. The beauty of real estate is that there is an asset backing your investment. You can get creative about your exit strategy and explore refinancing or renting to get cashflow, rather than a sale. Over time, the prices are bound to rise again; all you need is patience. – Sohin Shah, InstaLend
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