For as long as society has existed, land ownership has been the paramount way to accrue wealth. Nowadays, property investing is one of the best modern ways to approach investing your money. With the right purchases, you can turn a couple of affordable properties into a real-estate empire. Having said that, property investing is NOT as simple as it looks. In fact, without the assistance of a company like Pumped On Property, you might end up lost during the process. Fortunately, we are here to help you out. Today, we are going to showcase seven key things that you need to remember when shopping for a property to invest in.
Essential Property Investing Tips
Whether you are purchasing your first investment property or you are adding to your collection, there is always room to improve. Buying real estate is an exciting adventure that can lead to serious rewards. Unfortunately, a misstep here or there can lead you to drain your bank account. While there are no hard and fast rules to guarantee your investment success, there are a few things that you can do in order to make the process easier for you. Let’s outline some important information to keep in mind during your investment adventures.
1) Understand the Area
The first thing that you are going to want to do is simple, you are going to want to research the local area. You can’t simply purchase an investment property without understanding the surrounding region. Take some time in order to learn about the local economic climate. You’ll be able to find trends for the area that could paint a positive or negative picture. Sometimes, a neighborhood that is trending in the right direction will present the perfect investment opportunity. Conversely, purchasing a piece of property in an area that is trending downward may not present the same kind of upside.
2) Get Professional Help
If you truly want to lock in on property investing as a career, you are going to want some professional help. Real estate agents can help to guide you through the entire investment process. From mining data to making offers, a professional realtor can be an invaluable source of information. There are plenty of real-estate agents who focus exclusively on property investing. Make sure that you take some time in order to meet up with several realtors. Lay out your goals as well as your financial makeup so that you can ensure that you are on the same page.
3) Embrace The Work
If you want to find success as a property investor, you are going to have to get comfortable working with property of all condition levels. Sometimes, you’ll find the most upside in a piece of property that looks like it needs a ton of work. While ‘flipping houses’ is an entirely different industry, it never hurts to understand the process. The better you are at upgrading cheap houses, the more money you will make when it comes time to sell your old properties. At the very least, make sure that you are going into showings with an open mind. You never know what opportunities may present themselves.
4) Start With Single-Family Homes
If you are new to the investing world, you are going to want to keep your attention focused on single-family homes. Investing in single-family homes is the best way to acclimate yourself to the industry. These houses are typically affordable, easy to maintain, and easier to sell. You won’t have to worry about all the work that comes with maintaining multi-family properties. You’ll also be able to rent out your single-family property with relative ease if that becomes a necessity. Put simply, single-family homes are like training wheels, everyone needs to start with them until they are ready to ride alone.
5) Understand Your Finances
You are going to need to talk to a lender and your financial adviser at some point in time. Ideally, you’ll start your property investing adventure by sitting down with your financial adviser in order to discuss your goals. You’ll be able to find out what type of mortgage you should focus on as well as the benefits between an adjustable and fixed rate. Your financial adviser will be able to paint a picture of your finances that you can then use to examine your various paths forward. At the very least, your financial adviser will get you ready to begin your journey.
6) Develop A Marketing Strategy
Unless you are planning on owning your investment properties for the long haul, you’ll need to have a marketing strategy in mind. In order to get these homes out from under you, thus returning a profit, you’ll need to be able to quickly tap into the buyers market. Talk with your real-estate agent in order to decide on a plan of attack for your property investments. Are you aiming to sell turnkey properties? Do you want to invest in properties that you manage as a landlord? Are you looking to invest in fixer-uppers? Whatever your dreams and designs are, make sure that you have a way to market them to potential buyers.
7) Talk To Locals
If you are looking to purchase property in a new area, you should spend some time talking to the locals. Now, we don’t mean that you should go door-to-door. Instead, you should go to local businesses and parks. Talk to people that you run across and mention what you are trying to do. Sometimes, you’ll get great information from locals in the area that you would have otherwise never come across. What’s not to like about that?
Investing in property is a tough job in the best of situations. Fortunately, property investing is incredibly rewarding. With our tips in your back pocket and a game plan on paper, you’ll be able to find your way to some beneficial property investments. With a bit of luck, you are about to build your property empire!
