7 TIPS FOR REAL ESTATE INVESTORS
7 TIPS FOR REAL ESTATE INVESTORS
1 Make A Plan Decide what your real estate investment goals are. What do you want real estate investment to help you achieve? Next, write down specific short and long-term goals. How much cash flow would you like your investments to bring in? What types of real estate would you like to invest in? And what is your time frame for accomplishing those goals?
7 TIPS FOR REAL ESTATE INVESTORS
2 Know the Market If you're new to real estate, one of the best ways of ensuring success is to make sure you keep on top of what's going on in the field. There's plenty of information available out there much of it free. Check out home prices either online or in your local newspaper. Go to the bank and get specific numbers on loan volume and down payments. You can even visit homes that are similar to one you plan on listing.
Tip to Successfully Choose Your Market 1. Choose a market near you. Most new real estate investors should choose a market that is a short distance from where they live. 2. Network. Connecting with other investors in your area is a great way to not only learn about real estate, but also to keep track of trends in your area.
7 TIPS FOR REAL ESTATE INVESTORS
3 Find Help What resources can you access that will help you accomplish your goals? Who or what can you access in order to help you achieve your goals? Shorten the learning curve by finding a friend, advisor, or mentor. Real estate investment can be challenging, and a supportive ear can play a large role in your success.
7 TIPS FOR REAL ESTATE INVESTORS
4 Make Sure You Diversify Diversifying your real estate investments is a good way of mitigating your risk. Instead of relying on one type of investment, a diversified portfolio consists of various properties that include high, low, and medium risk properties. In the event that one type of income property fails to yield the expected return, your portfolio can still make a profit.
7 TIPS FOR REAL ESTATE INVESTORS
5 Be Patient While some tactics, like flipping, claim to be an easy way to quick money, they're also risky. Most real estate strategies aim for medium to long term returns. Rather than jumping in headfirst for fear of missing out on "the deal of a lifetime," take time to investigate all aspects of the real estate transaction, and get second opinions when possible.
7 TIPS FOR REAL ESTATE INVESTORS
6 Consult With An Accountant There's nothing worse than being hit with a large, unexpected tax bill. An accountant experienced in real estate investments can help you make sense of the constantly evolving tax code. Because taxes are an integral part of all income property, having an experienced accountant on board can make the difference between making a profit and taking a significant loss.
7 TIPS FOR REAL ESTATE INVESTORS
7 Make Sure You Can Afford It Before you buy a property, always make sure you can afford to buy it. Keep in mind that "affording a property" involves more than being able to pay the initial cost of the property itself. While you might be expecting the cost it takes to maintain your new income property, the cost of taxes or insurance for that particular property might tip the scale from affordability to disaster. You need to be honest with yourself about what your cash flow needs are. Will you be able to make up the difference if the property stands empty for a month or two? What will you do if property values go down, but you need to continue paying a mortgage at the higher price?
7 TIPS FOR REAL ESTATE INVESTORS
Questions? Still not sure what's best for you? Contact an experienced real estate broker at Westwood NetLease Advisors. You'll get a free 3o minute consultation, and solid advice on how to get started investing in your income property. Visit our site for more information on commercial income property.