You might have heard how lucrative and advantageous going into real estate investing can be. It can be a highly rewarding venture that provides significant passive income, allows you to build your own business and teaches you many valuable skills. If you aren’t certain where to get started, however, we have some tips.
Real Estate Investing Ideas
Many investors get their start flipping houses. This is a good option for investors who do not want to be landlords and assume all the responsibilities associated with that role. This type of investing involves purchasing a property that might not be in the best of shape for a lower price, fixing it up and then reselling it for a higher price. It can be highly lucrative, especially in the right markets. You can then use the money you earn from a sale to start buying and rehabbing another house.
Buying investment properties and then renting them out is another common route to investing in real estate. You can do this with any type of property from commercial space to residential homes and condominiums. When you pursue this type of investing, you become a landlord and assume all of the legal responsibilities that role requires. It is, therefore, a good idea to have a strong understanding of landlord-tenant law in your state, as well as maintaining a relationship with an attorney specializing in this type of law whom you can contact when you have questions or issues.
Consider Renting Your Old House Rather Than Selling It
Another great idea to get started in property investing is by renting out your existing home rather than selling it. For this to work, you will obviously have to be able to afford a new home without the money you would get from selling the old one. This approach has numerous advantages, however, such as the fact that you won’t be risking a lot of money on an unknown property. You also know your home best and will be able to accurately represent it when marketing to potential renters. You will presumably have maintained the property and addressed any safety issues as well.
Get A Good Real Estate Agent Who Knows Real Estate Investing
No matter what kind of investing strategy you want to pursue, you should enlist the aid of a professional real estate agent in order to do it. Ideally, you should work with an agent familiar with investing in properties commercially because investors have different considerations than buyers looking for a primary residence do. Real estate investors need to make decisions about property purchases and sales based on pure numbers. This includes expected returns based on repairs needed, how much you can expect to rent or sell the property for, regular upkeep costs and other similar factors.
As one of the premier real estate firms in southern Oregon, we can help you get started investing. Whether you want to buy and rent or buy and sell soon afterward, we can help you through the process. Contact me to learn more.