Basics in Investing in Real Estate

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Hispanic family outside home with sold sign

    It’s nearly 2014, and house prices are lower than ever. With the housing market slowly growing and recovering from the 2008 debacle, now is a perfect time to start investing in real estate.But it’s a huge industry, and aswe learned from that debacle, it can sometimes be scary. So I’ve compiled a list of helpful tips for anyone looking to start investing.

  1. Decide which type of investment you’d like to make. There are a lot of options out there for exactly how to invest. For example, you could purchase a home with the intent of renting it out to others (thus, becoming a landlord), or you could flip a home. Flipping a home (if you’re not already familiar with the phrase) is when you purchase a home that needs a lot of work done for a cheaper price, remodel it and fix it up, and then turn around and sell it for more than you originally paid. Obviously, this only works if you’re also able to get back the money you put into it with the remodeling paid for. There are several other options out there, so do your research, and find out which type of investment works best with your situation and interests.
  2. Location is nearly everything. Regardless of which type of investment you decide to make, where the home or building is located is an enormous factor. Not only is a good location (good schools, close to stores, close to public transportation, etc.) what people look for when they rent a home, location has a huge impact on what you could potentially sell the home for if you’re flipping it. It’s worth it to spend a little more money for a home in a good location, than to save a little bit of money in the beginning. And since house prices are rising, the chance of a house’s price in a good location going up is much higher than a house in a less than ideal location.

While I’ve only listed two tips, keeping these in mind as you move forward will help you in starting to invest in real estate. There’s plenty of more information out there, and contacting an experienced real estate agent is another great way to move forward. Investing in real estate is a big commitment, but it’s a commitment that will pay off if you do it the right way.