It’s always a wonder how some guys make it big in the investment game. They keep on making killer property choices, and the profits keep on coming.
What’s their secret?
In this article, we’ll run you through 5 real estate investing tips that the pros keep trying to hide from us all. They may have learned it the hard way and don’t want to share how easy it can be to invest in property.
There’s not just one way of making it big in the investment game. Yet, some handy little tips could set you on the right path to success.
Real Estate Investing Tips
Tip 1: Single-Family Rentals
According to a new study by the Terner Center for Housing Innovation, there is a rising demand for single-family rentals. In fact, the study found they are the fastest-growing section of the US housing market.
Why is this good for you?
Single-family rentals are considered one of the best housing types to attract reliable tenants that pay on time and stay long term. Many families can’t afford their own homes, so they look for good rentals in decent neighborhoods.
Tip 2: Emerging Neighborhoods
Cities and towns are expanding and evolving. At one time, a particular location might have been the “hip” place to be. But guess what happens – investment starts flooding into these areas, and property prices go up.
The people who made the place “hip” end up moving because of the rise of rents and prices and look for a new location – and the cycle repeats.
Also, house prices rise when better transport links are built-in hard-to-reach neighborhoods. The neighborhoods become more appealing because renters can commute easier and live with lower rents.
If you can invest in places that are up and coming in few years, you may see significant returns on your investment.
Tip 3: Balance and Diversify Investments
Single-family rentals could be seen as a safe long-term investment. Investing in emerging neighborhoods could be considered a little risky. It would be ideal for diversifying between the two investment strategies, so you’re not putting all your eggs in one basket – so to speak.
Furthermore, it’s a good idea to look beyond your hometown or city to diversify your investments. It could be that your town has some issues and property prices crash. Having property elsewhere might be the perfect backup to keep you afloat in hard times.
Tip 4: Avoid Over-Rehabbing
Installing the best of everything in rehab property doesn’t always guarantee a quick and profitable sale. The good idea is to look at other properties being sold in the area. Focus on mimicking the ones furnished nicely and match the sale price you’re looking for.
If you overdo rehabbing, the property can stick out like a sore thumb compared to others in the neighborhood – your property needs to fit in. And be realistic about your budget and the selling price too.
Tip 5: Be Patient
Sometimes, all you need is some good old-fashioned patience when it comes to real estate investments. You might come across a slump in the market right after you bought a place and thought prices would rise. Sometimes you have to wait it out, and the future may be kinder.
Make it Happen!
If you feel like these kinds of strategies are just too hard to grasp all in one go, there is one more tip that real estate investors won’t let out. Many of them use reputable investment companies that offer alternative real estate investment options – and it’s all managed for them!
There are many real estate investing tips out there, but we focused on five that will give you a balanced yet profitable portfolio.
To learn more about how you can carry out all these investment strategies and more, contact our friendly team today!