During shifts in the real estate market place, like the one we are experiencing right now, we receive more questions about real estate investing. Home prices are growing at a much slower pace and this can have a positive impact on income property prices for first time investors. The rental market is not indicated to slow down, we foresee it will keep on climbing, creating a great environment for investors.
Investing in real estate to create wealth is sound strategy, but what many don’t realize is that there are some very real dos and don’ts when it comes to making your (first) investment.
Real estate investing is not just exciting and potentially profitable – it’s also intimidating and carries with it some very real risks. As such, it’s important to pay attention to some of the main things that can help you get the absolute best results possible from your efforts.
These dos and don’ts can make a huge difference in your results, and can ensure that you find true success when investing in real estate. Here are the main points to keep in mind.
- Don’t Act Based on Emotions – It’s far too common for people to let their heart guide them when making an investment decision. But your mind is what you should be listening to. Logic and hard numbers should be a key factor in your investment – don’t act on emotions.
- Don’t Assume You Know It All – Investors making their first purchase often get cocky and assume that they have all the answers. It’s important not to assume that you know it all or that you can learn everything in a couple of days. Instead, be patient and take your time learning everything that you can. You’ll gain skills that will help you throughout your investments throughout the future – but only if you listen and learn.
- Do Your Research – Take the time to calculate expenses, potential profits, overall costs, and more. There’s no need to make a purchase without doing some due diligence, and making the right investment decision begins by knowing all you can about a property’s potential and your investment results.
- Don’t Ignore Debts – Be sure to pay attention to the debts that you carry into your investment. Everything from student loans to medical bills can have an impact on the rates you get and the terms of a loan, and the better your portfolio and your history, the better your results.
- Give Tenants Your Attention – It’s easy to ignore tenants once you have a property and a signed lease. But word of mouth makes a huge difference in your investment future, and giving tenants the attention they deserve is important.
The bottom line here is simple – don’t make rash decisions and be sure to consider all of your options carefully to make sure you get the results you need and get the best outcome from every investment.