If you think that real estate is set for a recovery, you are right. The year 2015 brings joy and good tidings in the form of a slowly recovering real estate market. The market is particularly good for small investors as new constructions, short sales, and foreclosed properties are available for sale. Large investors have pulled, and it’s a great time for first-time buyers and small investors.
Anything Particular to Watch Out For?
Industry professional Jeff Adams points out that the real estate market is really good at present. Mortgage rates are low and investors can easily find funding to fuel their investment dreams. However, he does caution first-time buyers. According to him, the 2015 real estate market is different from 2008 and investors have to be careful of several things.
Buy-To-Hold or Being a Landlord
Flipping was very popular in 2009 to 2011 when property rates were very low. Investors could purchase foreclosed houses at rock-bottom rates, renovate, and resell at a good profit. However, the real estate market has leveled out in 2015.
Now, rental rates are at an all-time high. In this market, it would be a good idea to invest in an ugly duckling house located in an upscale neighborhood, renovate it, and rent it out for the most return on your investment.
Use Technology to Find Great Properties
The Internet has made it tremendously easy to find affordable properties anywhere in the county. You can use real estate websites like Zillow and RedFin or install their apps to be constantly updated about the best properties listed for sale.
A few of the better real estate websites also have video walkthroughs of the properties listed for sale. Use as many resources as possible to help you choose the right investment property for yourself.
Find External Funding
Avoid using your own money to buy real estate as an investment. Almost every lending organization will happily lend you money at an affordable interest rate. The best way to start your real estate investing career would be to get funding up front before you actually start purchasing property. This way you know your budget and you will stick to it while looking through property.
Location, Location, Location
This is probably one of the most important aspects of any real estate deal. When you are buying commercial or residential real estate make sure that the property is located in a good neighborhood with schools, markets, and highways located close by.
The current trend is small towns located close to large cities. Satellite towns are close enough to large cities so that parents can commute. These satellite cities also have schools, markets, malls and restaurants that make them a great place to stay.
Jeff Adams #1 Real Estate Trainer recommends you learn as much as possible about real estate investment before you start spending your hard-earned money. With the right training, he states that newbie investors will be able find affordable property, get financing, purchase property, rent it or flip it quickly to make a profit.
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