Six Tips to Get Your Home Investment Game Off the Ground
The current growth in the housing market has tempted more people into taking the investment plunge. Is this the right move for you? To make the most out of a real estate investment (or even simply to avoid disaster), you’ll need to make intelligent decisions from the get-go.
If it’s your first time investing in the Central Florida housing market, here are a few investment tips that you should keep in mind:
1) Good Investment is a Numbers Game
Successful investing is a numbers game. You want to avoid becoming emotionally invested in the property. This is not going to involve the same metrics that you might focus on for your family’s residence. To play this numbers game well, keep these three points in mind:
- What you need to spend to purchase the property.
- How much it’ll cost to refurbish the property.
- What you’ll be able to sell or rent it for.
2) Have a Strategy in Place
You’ll avoid plenty of issues if you know your strategy and stick to it. Are you looking to fix up homes or buy and hold until property values come up? This is also an essential practice if you are learning how to flip properties. Having a strategy in place allows you to react effectively to the unexpected without losing sight of long-term goals.
3) Don’t Over-Commit in the Beginning
Fledgling investors can find themselves in trouble if they commit too much to their investments early. Don’t invest with the mindset that you’ll get it turned around quickly. Take it slow and avoid investing funds that will draw from your long-term savings plans. Investing in real estate should not replace your long-term savings, it should supplement them.
4) Get Connected with Other Players
We live in an online world and there are plenty of investor groups that can be a great resource for first-time home buyers. There are even some good social networking sites and forums for investors (try Meetup.com). Do some research and see where the best in your area are investing their money.
5) Compile a Winning Team
If you’re serious about real estate investment, then you need a good team. Do the pre-game research and get the best available to you. Make use of referrals to find these A players. Try to find people with good experience who can provide advice that you can act upon. If you’re successful, you might want to consider setting up a Limited Liability Company (LLC) to protect your personal assets.
The starter investment team should include these base players:
As you start out, remember to pick each investment with care. We recommend looking for properties that have mass appeal and don’t require constant maintenance. Good investors and home flippers don’t base their final decisions on personal taste. Factors such as swimming pools or even odd-room layouts should be taken into serious consideration before buying a home.