Marty Stone, who co-wrote The Unofficial Guide to Real Estate Investing, says that real estate is “an investment vehicle that never goes out of business,” and nothing can be truer. No matter the risk, those who are brave enough to waddle in the waters of real estate investing almost always come out victorious. No wonder many people are attracted to the lure of real estate. However, real estate investing is not the same as investing in stocks and bonds. New investors should then keep in mind these tips before immersing themselves in this endeavor.
1. Know that real estate is a serious business. Anyone who wishes to engage in it should have a business plan that includes his goals and his plans for development over certain appointed time frames.
2. Read up. The Internet offers a rich amount of information regarding investing in el estate. Look up practical advice on buying, selling, flipping
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Know where to find the best properties. Do not limit your investments to areas close to home. Instead, locate properties that may be a little far from your place, but yield higher profits.
4. Determine property values. Before you buy properties, make sure you have done an exhaustive comparison of property values and rent prices. What is the range of sale and rent prices? Doing this will enable you to make projections about the income you will make and inform you if the cost of buying the property is worth it.
5. Do not focus too much on market value. While it good to have properties that have a high market value, it is much better to look for properties that generate positive cash flow. These properties may not be worth what you paid for them, but if they continue to generate cash, then you are on the right track.
6. Seek professional help. Talk to investors, real estate agents, lawyers, property managers, tax personnel, contractors, building inspectors and other experts. Their advice would come with a fee, but what you learn from them will be part of your