Have you always wanted to pursue a career in real estate? If so, you’ve come to the right place! In the last few years, the real estate industry has grown a considerable 5%, which means there is plenty of scope for new entrepreneurs to make their mark in the industry. Like most other businesses, there is always the element of risk that comes with being a real estate investor, but there is the opportunity to reap success with careful planning and research.
If you’re considering investing in real estate in the near future, the following tips may come in handy.
• Invest in rental properties
If you aren’t too worried about making a long-term commitment, investing in residential rental properties could be the way forward. People will always need somewhere to live, so it is typically considered one of the least risky real estate investments you can make as a new investor. You can decide whether to rent out the property on a short-term or long-term contract, depending on your preference. While renting out residential properties may seem like a straightforward process, it will require some work on your part. There will be ongoing maintenance and repairs to consider, which will be cheaper to carry out on a DIY basis. However, if you’re unskilled in this area, you could hire a property management company to oversee these tasks on your behalf.
When selecting a rental property, it is wise to do your research into developing neighborhoods with high demand. Inner-city properties are typically the safest option for new investors, thanks to the benefits on offer for tenants, including easy commuting as well as great job prospects and social prospects.
• Consider funding options
As a real estate investor, you’ll need to think carefully about how you’re going to afford to purchase your properties. Investors very rarely have the spare cash to purchase such a large asset upfront, therefore, you may need to take out a loan to cover the costs before you can make a profit. In some cases, there are specific criteria you need to meet, to be eligible for an appropriate loan.
Some options include:
- Bank loans
- Hard money loans
- Private money loans
- Home equity
Flip and Fix loans from Sachem Lending are another option for real estate investors who are looking to make a profit on a property they have renovated to sell. The bottom line is, the type of loan you require, will be dependent on the type of investment you’re keen to make.
• Gain an understanding of the market
As there are various markets within the real estate industry, it’s a good idea to get to grips with the trends, and rules and regulations that need to be adhered to – such as typical rent costs, interest rates and landlord duties – to help you stay ahead of the game. As with any profession, becoming a certified real estate investor, takes hard work and dedication, but your endeavors should certainly pay off once you start climbing the property ladder.