4 Tips for Rookie Estate Investors
So you’ve heard that the real estate industry is the real deal and you want a piece of the pie? Well, we’re here to tell you that it can all be yours, in 4 super easy steps!
With anything in life, preparation is key, and successful realtors will tell you no different. So in order to prepare for your success, keep reading these 4 tips for breaking into the real estate investing.
1. From personal to rental.
A great start to your life as a real estate investor is to consider putting your personal property up for rent. This is a great way to get your feet wet in the real estate market. It’s also a good idea to take some time to do all the needful repairs along the way if you intend to live in the property for a few years before renting it out. This is a cost-effective way of getting more value for your property. A great way to get your feet wet with real estate investments is to put your personal property up for rent
2. Stay away from fixer uppers.
It’s very tempting as a newcomer in the real estate market to navigate towards the houses on the market that are low priced. But these properties don’t come without their own fair share of problems. It’s advisable to always look out for properties that don’t need much work to be done on them before leasing them out. Unless you plan on living in the fixer-upper before renting it, then it is considerably more cost-effective to buy a property that is in great condition from the start.
3. Buy your property in a developed area.
A great way to start your real estate investments on a good note is to look for properties in a working class neighbourhood. This way, you are ensured that there is a great flow of traffic and rental properties won’t stay on the market for too long. Always think of your potential target market. If you are buying property close to a university, look for rental properties that will appeal to students and affordable for students. It will most likely take you a longer time to rent out a property in an area mainly occupied by homeowners. Though not impossible, it is however easier to get a tenant in an area where rental properties have a higher turnaround rate.
4. Don’t quit your day job.
We’re just going to go out on a limb here and assume you started this real estate investment life as a side gig? Well, if this is the case, don’t quit your day job just yet. A lot of real estate investments go sour when people don’t plan their finances properly. If you’re expecting a profit from a house sale or rental income and the real estate market crashes, this is a serious problem if you no longer have that cushion of your day job to cover your income needs. Until you have a diversified real estate portfolio, it is advisable to keep your day job to cover any downturns in the market or defaulting tenants.
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