Tips For Getting Started As a Real Estate Investor
Most people looking to invest their money could sooner or later turn to property. It is an established, proven and rewarding investment option. Although investing in this way may not seem as complicated as buying and selling stocks, you will still have to get your head around the basics if you want to be successful. This post has collected four of the most important things to keep in mind when investing in property.
- Be professional: Write a professional and detailed investment plan, outlining goals and timescales for two, four and six years.
- Learn about real estate investing: You can find huge amount of free information on the Internet but do consider buying a book with practical guidelines. At the same time, avoid guides that promise astronomical profits in a very short amount of time.
- Find the best local market: Do not limit yourself by only looking in your proximity. Often the market is booming a bit further away. You may worry about constantly having to travel for repairs and similar. However, making sure that the property is in top state before anyone moves will reduce this risk.
- The 1% rule: An old rule of real estate claims that a rental property generating 1% of the sales price per month is a good deal. This means that if the home cost $200,000, you could charge $2,000 per month in rent, or about 12 percent annual yield.
In the end, don’t forget that like anything else, the harder you work and the more effort you put into your real estate investments, the greater your success can be. Good luck!