6 Tips on Getting Into Real Estate Investing

Going into real estate can be an exciting investment strategy, one that is both satisfying and lucrative. However, it’s not all rose petals and fairy dust. Every investment comes with risk but it’s how you manage and mitigate those risks that make the difference. If you are seriously considering diving into real estate investing here are a few things to take into account.

SIX (6) THINGS TO KNOW ABOUT REAL ESTATE BEFORE INVESTING

Establish Relationships
It is not just a numbers game, it’s also a people game -Relationships are important. Everything is about relationships and real estate is no different. You have to find a reputable and trustworthy realtor who understands your goals, an honest contractor who won't take advantage of you, and tenants who are credit worthy and will pay on time.
Location
Where you buy a property is just as important as what property you buy. Do your research to see what developments are happening in the area you are looking to purchase. An average house may yield higher returns in a more developed part of town than a really nice house in a poorly developed part.
Funding
Evaluate the different ways of getting in. Wealthy people invest in real estate because it is a secure way to keep and grow their money. Three ways to fund your real estate property: Self Financing(using your own cash), securing a loan, or raising capital via equity investors.
Tax Advantages
Owning real estate offers Tax shelters. Do your research to educate yourself on how to take advantage of these.
When To Purchase
Real Estate has cycles. Purchase when markets are low. Acquiring properties in a low market can sometimes bring considerable appreciation values. Also consider purchasing in less desirable areas. They have a tendency to turn around over time and bring notable returns.
Be Flexible
Things will not go as smooth as planned. It is inevitable that things will go awry at some point, whether it’s a bad tenant, bad property management, etc. Maintain a level of flexibility to help deal with any situation that arises.

Although the above six tips are geared mainly at owning rental property as a form of real estate investing, there are generally five different ways to invest in real estate which we will get into in the next post.

This was Part V of the Investing series: Click here for Part IV, Part III, Part II and Part I

Our investing series will continue in our next article and will dive into the different ways to invest in Real Estate. Sign up below to receive the Investing Series directly to your inbox: