If you’re willing to work hard, there’s a lot more money to be made in real estate. Take a look at our advice on making residential real estate investments
If you had to choose today where to invest your nest egg, would you choose wisely? People looking to increase wealth often narrow down their choices to the stock market and real estate.
Did you know residential real estate investments pose a lower risk? They also yield better returns and allow investors to diversify their investment portfolios.
In today’s post, we’re offering tips for home investors. If you’re thinking about putting your money into residential properties, take a minute and learn how to make effective investments.
Becoming a Real Estate Investor
Sometimes people shy away from investing real estate because they’re not sure they have what it takes to succeed.
If you have an entrepreneurial personality, you can become a real estate investor! By the way, mentorship and training are two of the best ways to learn real estate.
What don’t you need?
Aspiring investors don’t need a real estate license or credentials. They also don’t need a tedious business plan to get started. Now, that doesn’t mean you can forge forward without a plan of action, but a real estate investment plan will serve you better than a business-school style plan.
Your path to becoming a real estate investor might begin with a rental property. We’ll talk about that next.
Rental Property Investment 101
Many investors start with the dream of becoming a house flipper. After all, don’t those reality shows make it look so easy? We’re not against, flipping houses, but savvy investors put their money into rental properties.
Residential rental properties make excellent investments for beginners. First, they’re usually less expensive, making them more accessible. Second, you won’t need as much money upfront, which can make it easier to get financing.
Before you invest in the duplex around the corner, do your due diligence.
Make sure you invest in an area with a high demand for rental properties. Look for markets with low vacancy rates and low housing supply. You’ll also want to invest in areas with stable job growth and opportunities for economic expansion.
Lastly, make sure your rental income will support the purchase price of the property and aligns with the amount of money you can invest.
The Appeal of Flipping Houses
Forget the chic reality show host and the allure of picking out the perfect Travertine tile for a minute. Before you jump into flipping houses, you should know it’s nothing like the reality shows.
Profiting from house flips means researching the market. You’ll also need more experience in valuing properties. Otherwise, you risk overpaying for a house or pricing it incorrectly when you sell.
To have the best chance for success, it’s a good idea to pair up with an experienced real estate agent or a seasoned flipper.
Ready to Get Started In Residential Real Estate Investments?
We hope we’ve inspired you to consider taking the next step in real estate!
Learning about real estate investing for beginners is a start, but don’t forget to find a mentor and join a few local real estate investing networks.
If you’ve enjoyed reading this post and want to learn more about making residential real estate investments, check out our archives. You’ll find a wealth of articles!