Every homeowner has a fortune; one that is tied up in something they will never / want to never sell. What is that, you might ask? The HOME! Real estate investing considers owning a home equivalent to owning a treasure! Imagine, thus, if you could have two homes; one to live in and one purely for investment. Your future would stand sorted!
You can live off the income from selling the house or you could put the home up on rent and expect a fixed monthly sum to help you run your expenses. Either way, real estate investing guarantees one of the best returns among all other types of investment.
If you’re lured into the prospect of a comfortable life funded by income from your real estate investments, you will need these 5 smart strategies to invest to your advantage.
- Know your Potential
If you’ve been living from paycheck to paycheck, be realistic. You can’t wake up one morning and decide to invest in commercial real estate. Know your potential and invest accordingly. The safest place to begin, as a first timer, would be residential real estate. Consider flipping a home or investing in a foreclosure to make a good profit from your first deal.
- Run the Numbers
Consider how much money you have, the loan amount you will require for investment, whether you have enough for your days to run smoothly and how much you’re willing to spend on your first investment. A financial planner can contribute with valuable inputs and help you devise a sound financial strategy.
- Take One Step at a Time
If you’re a beginner investor, investing in more than one property at the same time is not advisable. Take your time to look at as many potential properties; however, industry expert Jeff Adams recommends that you invest your time, money and effort into only one property – the best of the lot. This gives you ample of time to focus entirely on that one investment. Since it’s the beginning, you will have a lot of mistakes to learn from and giving yourself room to grow will benefit you in the long run.
- Formulate your Plan of Action
Before you make an investment, you must plan your investment strategy. This will help you narrow down your search while looking for potential properties. Will you flip the home after renovating it? Will you put it up for rent? Or will you consider turning it into a commercial space for higher gains? Remember to plan your strategy based on your financial input.
- Remember the Market Fluctuates
At present, the real estate market is gradually picking up pace and property rates are expected to rise. This is a good time to make an investment and this also gives you an edge as an investor to squeeze buyers into purchasing your property before market rates increase further. However, consult with a real estate agent or a professional to help you read trends in the market.
Remember that the best strategy with any real estate investment is investing in the right place, at the right time and at the best price.
