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Real estate investing continues to be one of the best ways for individuals to accumulate wealth. Real estate property generates solid returns, and it also tends to appreciate over time, making it a very wise investment regardless of the economy or market conditions. For new investors, taking the first step and buying a property can be a huge undertaking. Not only will you need to have basic real estate knowledge, but you’ll also need to learn about your specific chosen market, and how to build relationships with other real estate professionals. Luckily for you, we’ve compiled a list of tips that can help set you in the right direction on your real estate investing journey. Continue reading to learn these tips and become a more knowledgeable investor.
Have a thorough plan
If you want your investment to turn out profitable, you’ll need to have a set goal and a well-thought plan. That also means you should have a defined timeline, budget, and exit strategy. Your exit strategy will also determine the type of property you’re looking for. For example, if you’re planning to fix and flip a property, you’ll want to find a home in a good neighborhood that’s in need of some light renovation. If you plan to hold a property for long-term income, you will have some more flexibility, but will still want to find a property with some curb appeal. Be sure to crunch the numbers before making a purchase to determine if your plan is financially viable.
Research your market
The next thing you’ll want to do is some research on your chosen market. Knowing the average sale price of homes in your market and which neighborhoods people are moving to can affect your investment strategy. Doing research can also help you understand what the future of that market may look like. Look at demographics and market trends to help predict where the market is going, and use that information to your advantage when making a purchase decision. If you think a certain area will be seeing an increase in demand, your investment can grow in value without you lifting a finger.
Choose a good location
You’ve probably heard it before, but location is everything when it comes to real estate. People want to live in areas with low crime rates, great schools, and access to amenities like restaurants, parks, and shopping areas. As we mentioned, a good market means you can benefit from high demand, and you’ll have an easier time finding a buyer or tenant. You don’t have to limit yourselves to markets near you either. If you’re having trouble finding a good property in your backyard, consider investing in a rapidly-growing “hot” market like those near up-and-coming cities.
Have professionals in your corner
Working with the right professionals can make all the difference in your real estate ventures. If you’re having any work performed at your property, you should look to hire qualified contractors that can provide examples of past work. They’ll be able to complete projects on time, in the right way, and they may even have project suggestions for you. A trusted real estate agent will also be your friend, being able to find you properties and buyers quickly. Your lender is another resource you have at your disposal. They can connect you with real estate professionals like contractors and agents, or even accountants and lawyers that specialize in serving real estate investors.
Work with a great lender
The best way to save on your next investment is to obtain financing from a trusted real estate lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are an investor looking to finance a property, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.