Have you ever thought about real estate investing? Many people are reminded about all the millions you can make from those late night infomercials. Real estate investing can be and is very profitable but it must be done carefully. Simply buying a property doesn’t mean you’re going to make money. With that being said, if you’ve got some money saved and you want to make something out of it then let’s get started.
Plan Your Real Estate Investing Strategy
It would be best to make a list of pros and cons and decide for yourself how beneficial a venture into the real estate business world would be for you. If all signs point to yes then here’s some advice to get you started..
- The least risky real estate investment is buying a house, refurbishing it, and then renting it out. This is your typical real estate deal. All you need to do is find a good house in a nice community. The location will determine the type of potential tenants your house will attract. Before you take somebody’s rent deposit and give them the thumbs up to move in you need to be sure you’ve done your research on the prospective applicant. Don’t make a hasty decision when it comes to renting out your house, a hasty decision will likely be a costly one.
- As mentioned, the location you choose to buy in will have a strong bearing on the demographics. Homes near universities may have the occasional parties with those tenants, properties in the suburbs will most likely attract families. When you pick an area to buy in your not just buying the home, you’re also real estate investing in your future.
- Renovate the place before you rent it out. Some new flooring and paint will probably make the place rent faster and for more money but don’t forget to use neutral colors. For more information on renovations, read our Home Renovations That Sell Homes article. Do your own inspection and make sure everything in the home is operational. Check the electrical system and the plumbing – you need to be sure that everything is in order before you even think about renting.
- Advertise. Place ads in papers and online, use social media, give out flyers, place posters every now and then, make sure everybody knows about the house you are renting out.