The Complete Beginner’s Guide To Investing In Real Estate In 2019
With the spring season (AKA peak buying time) right around the corner, it’s an exciting time of year to invest in real estate!
And the secret to becoming a successful investor isn’t so mysterious after all; it just comes down to how well you prepare yourself for the journey you’re about to embark on.
With a careful approach and an understanding of the latest market trends, even first-timers can feel confident investing in real estate in 2019!
Top 8 Real Estate Investing Tips Every Beginner Needs To Know
1. Network With Local Real Estate Investors And Experienced Industry Pros
Get to know other real estate investors in your town. Open houses, seminars, and conferences all provide excellent opportunities to network and meet others who can share helpful tips from their own experiences.
And as you may know from your own home buying experience, real estate transactions are somewhat of a group effort. You will almost always need the assistance of the following professionals:
- Licensed Realtor
- Real estate attorney
- Home inspector
- Title or escrow agent
Creating a powerful network of experienced pros in your town is one of the first steps you’ll want to complete before you purchase an investment property. And in case the home you buy isn’t move-in ready or requires cosmetic upgrades, it’s best to also have a reliable contractor in your arsenal.
Knowing at least one of each type of contact will make your experience as stress-free as possible, and help quicken the process of either flipping the home or renting it out to your first tenant.
2. Check Out Local Seminars, Conferences, And Webinars
Of course, not all events are created equal, and some will inevitably be more helpful than others. That said, if you have an opportunity to attend a conference or seminar in your city, it may be worthwhile to do so, especially as a new investor. Being inexperienced, you’ll want to prioritize learning as much as possible and networking with valuable contacts whenever you have the chance to.
Don’t be afraid to research real estate investing online, either; blogs, podcasts, and YouTube channels all offer a wealth of information that you can access for free at any time.
3. Decide Carefully Whether Or Not To Invest With A Partner
While going it alone may seem daunting, keep in mind that a real estate investment is a business transaction. Whether or not you choose to take on a partner, and who you would like that partner to be, are decisions that must be made with a business-oriented mindset.
Never partner with someone if you aren’t fully confident that it’s going to work out well. If you have any doubts about partnering with a friend or family member, for example, it’s probably best to go with your instincts and figure out a different plan.
4. Thoroughly Research Each Neighborhood/ Market You’re Interested In
Always keep your goal in mind: do you plan to flip the property for a profit, or are you looking to rent it out for an extended period of time?
Knowing from the start what you intend to do with a property will help guide your decision when it comes time to look at houses for sale.
Zillow’s Local Market Reports are a helpful, free tool you can access online to start researching property values and rental markets near you.
5. Find Out About Financing Options Available To Investors
If you don’t intend to make an all-cash offer, it’s important to realize that buying a house as an investment is quite different from buying a home. Speak with lenders in your area and meet with your accountant as well to discuss your financial situation and determine which type of loan makes the most sense for you.
6. Understand The Differences Between Making An All-Cash Offer And Financing
There are benefits and disadvantages associated with each option. It’s important to note that, while you may be able to afford an all-cash transaction, financing your investment may still be the better choice.
Prior to making an offer on a house, always talk with your partner and your accountant about how you intend to pay for the property.
7. Create A Realistic Budget For Your Investment
One of the biggest mistakes first-time real estate investors make is underestimating just how much money will go into the home before it’s ready to be sold or rented out. As you’re viewing properties, always pay close attention to detail and be conscious of potential areas of concern that may require costly repairs.
Leave some room in your budget for unplanned expenses whenever possible.
8. Always Take The Time To Personally Visit Each Property You’re Interested In
Believe it or not, there are some investors who submit their offers over the phone without ever having gone and looked at a property. And while that may work out in some cases, it’s not a wise practice for beginners to employ. When you’re first start out as an investor especially, your success will depend heavily on how well you prepare for what’s to come.
Do yourself a favor and don’t buy a property until you’ve had the chance to see it in person.
Find The Perfect Low-Cost Property For Your First Investment
If you’re ready to start looking at houses for sale, make sure you check out CastleRock’s nationwide inventory of affordable properties. Our listings include homes in every price range, and we offer special discounts for cash buyers as well.
Please feel free to get in touch with our friendly team today for more information!
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