Buying real estate can be one of the most profitable and foolproof investments you can make. However, there are still some elements of risk, not to mention the often high costs of these purchases. That’s why you need to do your homework well before spending your money. Otherwise, it may end up not being the lucrative venture you were expecting.
People tend to think that you can’t go wrong with real estate, but many people have. This is why we have compiled a list of some of the things you can do to ensure a successful investment.
Leave Your Emotions Out of Any Decisions You Make
Most of the time when buying a home, people listen to their heart more than actually thinking about it logically, which is perfectly fine when it is the place where you will be living for many years of your life. But don’t let your emotions affect your decision when buying your first investment property. Think of it as purely a business investment and logically negotiate to get the best possible price.
Remember, the lower the price you get for a property, the better the odds that you will earn a higher profit from it. Read more at Forbes…
Even when buying your next home, you’ll still need to be practical and logical to a large extent. But this becomes all the more important when buying investment property. Just because you like a house or it brings back warm memories of your childhood doesn’t mean you have to make it yours.
Remember, buying real estate is always a business decision. Make sure your decision to purchase ensures you make money or actual value in the long run, so you don’t lose your hard-earned savings.
Figure Out Rental Income if You’re Buying Rental Property
When searching for a rental property, find out how much a reasonable rent rate is accounting for the location and quality of the property.
Let’s say you buy a house for $100,000.
Through research you learn the average rent for that type of property in that location is $500 per month.
You can then calculate that you will receive $6,000 a year($500 x 12 = $6,000), or a 6% gross return.
Next, you must consider the expenses you will incur as a property owner. Read more at The Balance…
Rental houses are great because they give you returns in a short amount of time. In most cases, you’ll get tenants for your property before you even finish paying for it.
However, there is a lot that should be taken into consideration when buying rental property. For example, you need to consider how much you will get in returns, and how much you want to go back to your mortgage, if any. Additionally, you should consider all the costs that go into property ownership and maintenance.
Ask as Many Questions as Possible
Last but not least, be as inquisitive as possible. Once you sign those papers, you may not be able to get your money back.
In grade school, I spent a lot of time feeling nervous about asking a dumb question—and as an adult, I constantly have to remind myself that seeking knowledge, and looking silly for a hot second, is way better than feeling like you don’t understand what’s going on. These feelings popped up big-time during the house-hunting process, especially when I blasted our realtor with ten questions a day via text and email. But you know what? Good real estate agents want you to feel equipped and informed; besides, you’re paying them for their expertise and guidance. Asking any and all questions about buying a home is one of the smartest things you can do for yourself. Read more at Forbes…
A real estate lawyer will help you smooth out the real estate purchasing process. A good real estate attorney will also offer advice on the best property to maximize returns. Meek Law Firm South is here for you. Give us a call at (980) 729-5662 and work with an attorney who will help you make the best real estate investment decisions.