There is no doubt that real estate investing is one of the better investment options available in today’s economy. With the large number of foreclosures, distressed properties and homeowners that need to sell, the cost of real estate has dropped and investment opportunities have grown. The trouble for many is determining how to pick the best property to invest?
Although there is no question that making a profit through real estate investing is possible, it must be understood that the process does take some time, know-how and, of course, money. Your evaluation process on potential investment properties can make or break your profit strategy. Here are a few tips on the proper know-how for picking the best property for your real estate investment dollars.
You can start by identifying what types of properties you are going to be dealing with. Both commercial and residential properties are available for investors and both offer different rental and turn around opportunities. If you are considering residential properties, you should know in advance if you plan to live in the property, rehab the property for resale or renting. With commercial real estate, the choices are much the same, but one thing that reigns true for both types of properties is their location.
The location of your property is going to be vital. It is important to identify the market that you will be able to resale to with considerations of school districts, the condition of the neighborhood and simple things like buying ranchers to rent to the elderly. Whether you are looking for properties in Northern Virginia or downtown Richmond, you need to know to have a plan when you look at a property and see its long term potential.
Once you have a potential real estate investment property in mind, take the time to visit the property at different times during the day. What may seem like a quiet street may turn into the Mardi Gras after dark. Getting a building inspection and appraisal of the property completed are two other great ways to ensure that you know what you are investing your hard earned dollars into.
Buying properties at wholesale can make your real estate investing dollars go a lot further. Once you start your real estate investment investigation you may decide that becoming a real estate investor is more work than you were ready for. There is still another option that allows you to reap the great rewards of high earnings from real estate investments, without all the work and that is to become a private cash investor with another real estate investor. No matter which road you choose, the returns seen by individuals investing in real estate are greater than those being seen on today’s stock market.