10 Important Tips to Successful Real Estate Investing
When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:
1. Compare Property Values and Rents
Financial statistics only go so far; best measure of a property's market value is often sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.
2. Be Careful - Tax Laws May Change
Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of tax code. The right property with right financing is what you should look for as an investor.
3. Specialize In Something You Know
Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.
4. Know The Costs Going In!
Know financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does cash flow statement look like? These are key issues that must be addressed before making a solid investment.
5. Know Where Your Tenants Are Coming From