Lately, you may have observed a trend where people who are probably known to you or acquainted with you have been investing in real estate not only to buy themselves a home but to either put it up for sale or rent. Are you being fascinated with this trend and thinking of investing in some real estate as well to make some extra money on the side?
Well, the thought certainly is quite a profitable one; but real estate isn’t as easy as it may seem to you. It involves a lot of fine reading between the lines to be able to crack successful deals in this field. Take it from me; I, Jeff Adams, have seen the ups and downs of the real estate industry and over the years, I have been able to gauge the most favourable and unfavorable conditions for a successful real estate investment.
The Current Trends in the Real Estate Market
If you stop to think about the current trends in the real estate market in the United States; you are bound to notice a few things for sure, like:
- Big Hedge Fund Companies buying up tons of properties with upfront cash. They do this for clean returns on investments. Once they buy properties in prime locations, they wait for favorable market conditions and once the doors of a profitable opportunity open up for them, they sell the property for a good chuck of profit.
- Foreclosures are slowly but surely increasing in number these days. With a number of people being unable to repay off their loans, their properties are put up for auction. Quite a number of people prefer to buy real estate from such auctions because the value of the property is considerably low as compared to its market price. Therefore, the general public as well as many big hedge fund companies invest in foreclosed properties because profits are skyrocketing.
So where do you come into the picture?
If you are planning to push your way through the front in the real estate game; one thing that’s of utmost importance to you is to understand the intricacies of the game. One wrong move can send you plummeting down; but if you make all the right choices, investing in real estate is as good as money flowing in from a tap.
Professional advice is a must when it comes to real estate investing to ensure that all your deals are foolproof.
5 Tips for Successful Real Estate Investing
1. Research Available Properties
Real Estate Investing does not happen overnight. You need to take the time to research multiple properties and study its merits and demerits. Consider aspects such as the area (square footage), number of rooms, how many members the house would be suitable for, it’s location and distance from other prime locations, proximity to places of work and entertainment and most importantly the price.
2. Compare Property Values
Once you have researched various properties, draw out a chart to compare one property against the other from the parameters given above. With such a comparison, you will be able to gauge what will be the most profitable deal for you?
3. Sale v/s Rent
If you have chosen a property for investment and are unsure whether to put it up for rent or for sale, all you have to do is consider the price of the property. If the property is priced low, putting it up for rent is a better option as you will obtain a fixed amount of rent periodically. You can keep revising this amount as customers come and go to suit the market conditions.
If the property is priced high, the best thing to do is to sell off the property because you can never predict when the market value of the property will decrease.
4. Price it Right
You may seek professional help to price your property correctly so that not only do potential customers find your deal attractive, but you also gain a good profit from it. If you are renting your property you need to consider the costs you incur to maintain the property and if you are selling the property, the parameters such as area, number of rooms, proximity to other locations, etc., should be considered.
5. Don’t Quit Your Job
If you are making an attractive profit from real estate investing and are considering quitting your job so that you can relax and earn the big bucks; hold on right there. The real estate market is not a stable one that will guarantee you a fixed income every month. Therefore, to avoid possible financial crises in the future, it is best that you hold on to your job and enjoy your profits from real estate as an extra income.
The Real Estate Market is usually kind to the first time investor. Banks offer low interest loans and other different types of loans to favor real estate investing. Also, foreclosures are a good investment option due to high profits; but you cannot eliminate the advice and guidance of a professional when it comes to the real estate game.
