INVESTING: HOW TO INVEST IN REAL ESTATE AND CREATE YOUR OWN WEALTH
by Rick Delgado
on Monday, January 27th, 2020 at 10:13pm.
Building wealth in real estate can seem like a challenge. Learning the correct steps to take can be difficult. Maybe you have heard of investing from a co-worker, family, or a friend and want to know how to get started! Here is a guide on how to start investing in real estate and making your money work for you.
1.) The Value of Time
The real estate market has the ability to fluctuate in value. The reality is that overall trend for real estate has increased over time. When looking for a home to invest in, be prepared to pay in cash and have an emergency fund set up for any unexpected repairs that could arise. In order to generate profit from your investment, time will be your best friend. Your property will gain value the longer you wait to sell.
Renting is by far the most common way that real estate investors make money. The easiest way to do this find a set of renters before buying the home. This guarantees that there are guaranteed tenants ready to move-in prior to your purchase. The higher the rent, the more money you make. I would suggest to go a little above the average monthly cost of housing in your location. There is nothing better than having tenants pay off your house and extra income on the side.
Re-modeling a home is now becoming a more common way for individuals to make money in real estate. What makes this process so successful is the initial cost of the property before renovations. This gives you room to shop around for the house that will get you the most value. I would recommend to do research on the local real estate market in the neighborhood that you are looking to buy in. After you have acquired a home, set a budget for renovations. Always remember to get the property inspected before you buy. You never know what costly repair awaits that may dismantle your budget.