Financial Freshmen: What to Know to Make Your First Real Estate Investment a Success
The options available to you for your first real estate investment can seem overwhelming at first. However, with approximately 769,000 homes sold in May 2021 – it’s safe to say that the real estate market is still an ongoing, perennial investment.
Whether you are looking to invest in residential, commercial, or industrial real estate, there can be a lot of information to sort through. That is why we’ve created a list of only the best beginner real estate investment tips.
So go ahead, read on and prosper.
1. Know Every Single Cost Involved
I think we all know that real estate investment is not cheap, especially for your first time investing in real estate. Not many individuals starting in the market are ready to make a cash purchase on a property, either.
However, if you have a plan and are prepared to take out a loan, don’t hesitate to do so.
Don’t forget the additional costs of owning a property before and during its success as an income-generating asset. Find out what it will cost for annual maintenance and upkeep, upgrades, utilities, and property taxes.
The more you know beforehand, the better prepared you will be for the unexpected.
2. Select The Property Type for Your Real Estate Investment
Selecting the type of property for your real estate investment is no small decision. Residential real estate is one market, and loans are more plentiful in this area. However, 33% of commercial real estate investors report not having enough financial backing for their intended investment.
Even after you decide on the real estate market you want to enter, you need to decide how to rent it. Will you take the residential route and be a landlord or use your property as a vacation rental only?
Maybe you want to take the commercial route and rent your investment for small business or office space.
There is always the option to repair and flip a property for a quick profit if you can understand the market.
3. Research the Location for Your Investment
Selecting the location for your first turnkey real estate investment is of vital importance. You rarely want to make a decision based on price alone. Always perform research and due diligence. Check the neighborhood, the average market value, and what services and amenities are nearby.
You can know where to look if you know what type of real estate investment you want to invest in.
When searching for the best residential real estate units, consider the community, quality of life, vacation popularity, and nearby attractions. Look at the cities population, available parking, and general income demographics for commercial and business properties.
4. Have a Growth Only Mindset
Always think of your new real estate investment being sold in the future. You will want to eventually take profits from your property and leave the management to a new set of hands.
Make the additional changes and upgrades needed to make your property desirable and work towards having great tenants. Your hard work can pay dividends in both the short and long term.
Invest in Real Estate Today
If handled properly, you can begin to build a successful real estate investment nest egg. Always do your research beforehand and always seek help from a professional advisor if necessary. If you have the time and resources to begin an investment strategy, don’t wait to start investing in real estate today.
Let us know if you enjoyed this article below, and don’t forget to look at other real estate investment news and information from our blog. Here is to your future success.