Real estate has long been held up as one the most solid investments one can make. It can stand the test of time and reap rewards even in the most volatile economic scenarios. If real estate investment is a consideration for you, start by checking out this Starter Guide. You’ll be glad you started here first!
The Real Estate Investment Starter Guide
A real estate can give you a great source of income (at great rates) as well as long-term return potential at the time of sale. Another factor to add in is the potential borrowing power your real estate investment could allow you to take advantage of. For all these reasons, real estate is widely considered a sound place for investment. With a few solid tips noted before you jump in, your real estate investment will go smoothly and, most likely, profitably!
Single Family Homes – Buying a single family home in a real estate market that holds good potential for rising values is a great place to consider making your first real estate investment.
A few prerequisites should be noted such as:
“Flipping” Homes – A trending topic in real estate investment is house flipping, which simply put means: you buy a home that needs a lot of work, do the work and then sell it. The idea is that this will all be done quickly and the “flip” will generate profit at the time of sale. House flipping has worked out well for many, but comes with some caveats:
Rentals – Condos or single family homes can be bought with the intent to rent them out. The rental income can offset the cost of the mortgage, maintenance, upkeep and routine repairs. The rental income can essentially help you hold on to the property while it (hopefully) increases in value and ultimately yields a positive return on investment at the time of sale. Also, worth noting is: many expenses associated with being a landlord can be deducted from the passive income received from the rental property to avoid extra tax burden.
Understand Your Market – Be sure to do some research and gain a full understanding of the market you plan to invest in. Websites such as the Bureau of Labor Statistics, the Federal Housing Finance Agency and the US Census Bureau can provide a wealth of information to potential investors.
Real estate, some say, is the best investment and definitely one to consider. It is important to do your homework on the real estate market, carefully assess your financial situation and have a thorough understanding of the tax and regulatory requirements of the city and state in which you live before getting started. Once you’ve done your due diligence, you may just find real estate investment is for you.
If you are ready to buy, sell or rent a property, be sure to check out the innovative new company, Beycome. We’re changing the face of the real estate marketplace by allowing sellers, buyers, and renters to connect directly and eliminate costly commissions. Join the real estate revolution!