Investing in Real Estate
What is real estate investing?
Investing in real estate is common as the home market is one of the most stable markets to “guarantee” returns. There are different forms of real estate investing. First, is with homes you own and occupy. Buying a home that requires updates and completing those will add equity to your home and increase the profits you make when selling. There are also options to do that within homes you don’t occupy through flipping homes aka buying homes that require updates at a low price, completing those updates and selling for a profit. Alternatively, you can invest in real estate by purchasing and maintaining several properties that are rented out to tenants.
Is real estate investing for me?
While real estate investing can be very lucrative, it is not for the faint of heart. Purchasing and updating homes to sell requires a lot of capital up front and the skills to complete updates on your own or in a cost-effective manner in order to maintain a high profit margin. Keeping expenses in line, investing in updates that improve the value of a home and accounting for costs of selling a home must be included. Completing updates needs to be done in a quality manner to ensure a quick and smooth transaction.
Rental properties comes with the same caveats as above, but the additional task of managing tenants and properties. A property manager must be able to vet tenants, create and enforce rental contracts and complete maintenance requests that are required.
How do I get started?
Once you’ve done your research and decide that you are ready to invest into rental properties, one way or another, the next step is getting approved by a lender if you need to obtain a home loan, then working with me to identify opportunities for investments within the area. Investment opportunities usually move quickly, so be prepared to move on a new listing when you find the opportunity for you!