real estate industry
If you’re still starting out in the world of real estate investing, you’ll find that there’s more to it than just scratching the surface. It’s a complicated web of intricacy as compared to investing in stocks because there are plenty of things to deal with than just numbers. You need to consider the legal and financial aspects of the property as you exercise due diligence to improve the value of your investment.
Hence, it’s always a good idea to give yourself a proper education before you can dive into the more advanced aspects of investing in the real estate industry. Here are 4 basic tips to get you started in the world real estate investments.
Location, Location, Location
When you hear expert real estate agents talk about location, it’s because it’s one of the most essential factors to consider regarding real estate investing. This old adage requires you to check the site of the property before you fork over any amount of cash for the down payment. Following this tip allows you to put yourself at a safe distance away from additional risks. Checking the location of a real estate property is a principle that you’ll always come across as a real estate investor, even if you’ve already moved farther along the road to becoming a seasoned expert in the industry.
Search for Wholesale Properties
Investing in real estate has similar traits to investing in the stock market. For example, you’ll always be looking for the best deal that money can buy. If you’re dealing with the stock market, then chances are you’re not going to purchase a lot of stock during their highs if you plan on holding to those shares for a long time. This thought is a similar principle when dealing with real estate investing; always avoid paying the “full price” for properties. Instead, look into listings and get “wholesale properties” because these alternatives are offered at a discount. However, these properties might need further work and enhancements than most, so you might still want to run some numbers before purchasing the title.
Be Mindful of Your Credit Report
Investing in real estate doesn’t mean you should only consider about the property and nothing else. Most investors would most likely borrow money to purchase real estate. Hence, always keep a close eye on your credit report. Having a good credit rating allows you to get loans easier as opposed to having a low credit score.
Utilize the 1% Rule
What is the 1% rule in real estate investing? It’s a rule of thumb wherein an income producing property should create a 1% of the price you pay in profit each month. Follow this rule to the letter if you’re planning on buying a property to rent to tenants.
One of the many reasons why you’re getting into the world of real estate is because it can grant you many wonderful returns. Asking professionals in the industry, like those found in Finest Invest, can help you learn and understand more about the world of real estate investing.