A new day, week or month always brings potential for opportunity. If one of these opportunities is that you’re considering investing in real estate, you’ll absolutely want to be educated enough to make the correct choices when shopping around. The end goal of investing in to eventually earn some wealth on the property or properties you purchased, correct? If so, you should try to come as close as possible to the following situations in order to make that happen…
Try to buy a positive cash-flow property: When you are purchasing a property you are are using CD’s, stocks, bonds, etc., and investing them into a very non-liquid asset – real estate. When shopping around for properties, make sure they were earn you a decent return. Otherwise, you may be digging out for years to come.
Consider the risk: Whatever the situation, the majority of real is a risk – and a big one at that. Whether it be a fixer-upper you’re going to flip, or development of a high-end property, you may want to consider taking the fee-simple title in your own name, or a company that is wholly your own – to the properties you invest in. In addition – do your homework! Read reports, run analysis – whatever you have to do to make the most informed decision of where to invest your money.
Make sure the property isn’t going to take all of your time to manage: Investments such as college housing rentals, low-income rentals and vacation rentals could really suck up a lot of your time and energy to manage. While it may not be exciting at first, a decent, cash-positive property in a good neighborhood with the potential for long-term rentals to tenants with good credit will most likely go a long way and will cause less hassle to you.