Three Foolproof Investment Tips for Real Estate
Despite the frightening crash of the real estate industry back in 2008, real estate remains a smart investment. Of course, it always helps if you are knowledgeable about real estate and know what the market is doing. In fact, when the market crash happened, while many home owners went under the actual home investor who bought and sold homes as an investment did pretty well.
For many of these types of investors, the crashed market was seen as an opportunity to take money out of the crashing stock market and into real estate. They knew the low prices they saw wouldn’t stay, so many bought as many houses as they could, moved renters into them and held on until prices came back up. So how does anyone get this kind of insider information? Here are three tips to help would be real estate investors begin to bone up on the real estate market so they too can find their golden retirement ticket in real estate.
Know the Neighborhood
Most areas have their own ebb and flow of value so it helps to know and understand the one in the area you are considering investing in. Does this market look like it is going up in value over the last few years or is it going down? The ideal real estate market to invest in is one where older homes are starting to be fixed up and so the neighborhood is improving.
Finding an older home that is a bit rundown in a nicer neighborhood can also be a good investment. By understanding the market of the neighborhood, you are thinking of investing in, you can make smart choices on what property is worth holding onto and which ones you can simply buy and “flip” for a quick sale.
Know City Hall
I know three guys who have gotten the investment housing plan down pat and the biggest reason is because they have a partner who works at City Hall. He doesn’t do anything illegal, he simply knows and understands all the paperwork that goes with buying and selling property.
He also knows and understands like the back of his hand all the many zoning regulations in that city, so he makes sure they never run afoul of them. This has made the three men who formed the investment company well informed on any zoning changes coming down the pike in their town. Having someone who really knows City Hall can make a huge difference.
Make a Contractor a Partner
One of the biggest costs in this type of business is the contractor that will go in and improve that piece of real estate. If you know a good contractor in your area, don’t just hire him. Make him a partner in the business. This will ensure that you get the best possible job from him or her and also keep your costs in line. Yes, you will have to share the profits but at the same time you will probably have a bigger profit because of this.