Buying investment properties can be a very lucrative business venture even in today’s real estate market. While many so-called “analysts” incessantly argue that now is the probably the worst time to invest in real estate, savvy investors and those who really know the industry believe and practice otherwise. How else would you explain the rising number of investors snapping up investment properties, or the huge number of people who are getting trained and educated to become full-time real estate investors?
These people have good reasons why they are investing in real estate. So if you want to enter the property investment buying business, here are a few simple tips that should help you get started:
1. Determine the type of investment. Before you jump into the investment property business, you should decide on what type of property you want to invest in. There are a lot of investments to choose from. Rental houses, condominiums, apartment buildings, and mobile homes offer varying kinds of risks and rewards. If you’re like the thousands of others who are new to the business, perhaps it might be best for you to start with single-family homes. With hundreds of thousands of bank owned houses and distressed properties across the country today, you can buy single-family homes for very low prices and then renovate, rehab, or resell them for hefty profit margins.
2. Location, location, location. As any investor would tell you, the three most important aspects when investing in real estate is location, location, location. Ensure that your investment property is located in a good area of the city. Investment properties that are located close to schools, shopping centers, supermarkets, and financial districts always yield good returns.
3. Determine property prices and rents. It is imperative that you ascertain property values and rents in the area where you want to invest. Property prices are readily available from brokers and local real estate offices. If you’re planning to get rental properties, ask other landlords in the area how much rents are going for.
4. Secure financing. Many people have shunned property investment buying because they don’t have capital. What they don’t realize is that you don’t need money to start your own real estate investing business. A lot of investors nowadays use other people’s money to finance their deals. With most banks getting stricter in their lending policies, a good bet for you to find the financing that you need is to turn to hard money lenders.