Real Estate Investing Tips

In this article we will focus on two types of investments:  rentals and flipping. Getting into real estate investing is that it is a get rich slow process, not get rich quick. Follow the following steps to ensure a successful investment experience.

 

  1. Decide what type of investor you want to be, one that gets in and gets out or one that invests over the long term.
  2. Determine how much house you qualify for. This means checking your credit score and getting pre-qualified for a mortgage with a qualified mortgage broker.
  3. If you are investing in a rental property then you must think about positive cash flow; what number is going to be realistic for your market but will pay down your mortgage AND net you a profit each month?
    1. You’ll need to factor in potential repairs and vacancy carrying costs (when your property is vacant) when you calculate this number.
  1. If you’re into the flipping business (buying and reselling quickly, often after remodeling) then you need to determine how much return on your investment you want to receive.
    1. This number will determine how much you pay for a house, how much you invest in repairs, how long you can carry the mortgage cost during the renovation and selling period and what price you sell the house for.
  1. With the help of an experienced real estate agent, determine the best area with homes within your price range.
    1. Find homes (preferably priced below market value) and make an offer.
  1. Get a good lawyer that specializes in real estate.
  2. Be sure to have all inspections done and be present for them.

 

If you follow these tips then you will be on your way to making a solid investment.