It’s easy to enter the world of real estate investing, it really just takes the purchase of one property. However, there is plenty of room for mistakes along the way. It’s important to carefully consider all your expenses, stay organized and plan ahead to truly make this worthwhile.
Here are 5 tips all new real estate investors need to know:
Search emerging neighborhoods
It’s no secret that most of the best real estate deals exist in up and coming neighborhoods. Buying a flip in a popular neighborhood will usually result in too much time and expense renovating. However, if you buy a home in an emerging area, you can often snag just as good of a deal that doesn’t require as much work. Talk to your Realtor® about where to look.
Don’t do too much
Renovations are costly and time-consuming. You can expect to go over budget and over time when doing major renovations. While many properties will need minor renovations to get good market rate rents, it’s imperative that you don’t do too much otherwise you’ll damage your bottom line. Talk to a property manager or real estate agent to learn about what you need to do and what can wait.
Listen to experts
If you’re just getting started in the world of real estate investing then you need to listen to the experts. Hire a Realtor ® to walk you through the buying process and leaning on them to help guide your decisions. It may also be helpful to consult a financial planner before diving into the industry to see if it’s the right fit for your retirement plan.
Treat it like business
Many new investors make the mistake of treating their property as a hobby instead of the business it is. Register as an LLC, and keep track of your expenses to make the most of your investment. As with all businesses, you will have to spend money to make money, so having a reliable bookkeeper or property manager will help you stay on track and not overspend.
Plan for vacancies
Having vacancies is a normal part of being a landlord. When tenants turn over, you need to plan for vacancies so you can do minor updates and repairs to the property. Planning for vacancies also allows you to spend more time finding the right tenant instead of just letting anyone move in so you can keep the cash flowing. Good tenants are worth their weight in gold.
When it comes to being a landlord there are a lot of intricacies. Make the most of your investment by hiring a property manager to keep up with the details for you. Contact us today to see how we can help.