Things to Know Before Investing
Real estate investing has quickly become one of the most popular forms of investing in the country. With the housing market continuing to improve and the potential for sizeable profits, new investors are popping up every day looking to try their hand at real estate investing. According to an article from U.S. News, Bigger Pockets partnered with Memphis Invest, a turnkey real estate investment company, to compile data for a 2012 National Survey of Residential Real Estate Investors which found that there are 28.1 million real estate investors who spend a total of $9.2 billion on home renovations. Real estate investing has continued to grow in popularity and is seen as a safer investment than other forms of investing such as the stock market.
However there are risks that come with investing and real estate is certainly no different. For investors looking to get started the following tips can help you make smart, profitable investments.
- Educate yourself
This is the first and most important step when getting started in real estate investing. Do your research and learn as much about the process and what is required to be successful as you can and it will make the process smoother leaving you better prepared for any potential bumps in the road. Things don’t always go as smoothly as they do on TV, so the more prepared and knowledgeable you are the better.
- Take your time
Until you’re confident in the deal don’t make any rushed decisions because real estate is a major investment. Take your time and research properties to find a good deal that fits your budget and the scale of rehab you’re willing to do. While you’re looking for properties, also vet and look for quality, trusted contractors who you can have lined up to get started as soon as you find and close on your property.
- Make connections
Meeting and networking with other investors is a great way to learn about the process of flipping a house or buying and land lording a rental property from people who have done deals and can give advice on what has worked well for them and the things that they’d do differently. There are several real estate investor association (REIA) meetings that take place all over the country and chances are there is one near you.
- Consider the options
Find the type of property ownership that you think would be best for you. Would you rather invest in a buy and hold strategy with rentals and rent them out or would you want to buy a property, rehab it and resell it in a shorter time frame? Both are great options and many investors do both, but starting out find the strategy that works best for you.
Beginning the path to investing is an exciting one but requires a lot of time, effort, and due diligence to ensure the highest possibility of success. Ask questions and absorb as much information as you can and you’re setting yourself up for investing success.