If you’re looking for advice on making a real estate investment, you’ve come to the right place. This article lists four tips you should keep in mind when investing in real estate.
Tip 1: Find the Right People
If you’re new to real estate investment, one of the first things you should do is find a mentor. Try reaching out to different real estate investors in your area until you find the right match. From there, you’ll also want to find a good broker and realtor. Additionally, Forbes.com contributor Daniel Berman recommends building a marketing team and a relationship with an attorney. Your mentor can point you in the right direction on those fronts.
Tip 2: Know Your Market
It is essential to have a good understanding of a market before you make a real estate investment in it. You should know whether prices and demand are trending up or down in an area. Take the time to figure out what’s going on in an area before diving in.
Tip 3: Look at the Data
As a real estate investor, there are several broad data points you should be aware of. Construction and vacancy rates are two of the most valuable pieces of information you can gather. For instance, low vacancy rates signal an area is in high demand. You should also see how much debt and income the population of an area generally has, as those can signal how much buying power is present.
Tip 4: Pay Attention to Repair and Renovation Costs
Much of the value of a real estate investment comes from how much value is added to the house, especially from renovations. When working with contractors and other home improvement specialists, pay attention to the rates they are charging and the work they are doing. Exorbitant rates or shoddy work can put a huge damper on your profits.
For more information on getting the most out of your investments, take a look at Purevue Capital’s other blog posts.