Investing
In Real Estate: Achieve Your Real Estate Goals
With mortgage rates so low, many investors choose to invest
in real estate, as opposed to the stock market. In addition, real estate is a
prime investment for novice investors, as it is more tangible and
understandable than stocks and the index. According to Bankrate’s annual
investment research, 27% of Americans with money to invest would choose to
invest in real estate over any other investment. Because real estate is
becoming a popular commodity, especially among investors, here are three tips
for investing in real estate:
3
Essential Elements to Real Estate Investment
1.
Quantity over Quality = A Fair Cash-on-Cash Return
When investing, you are probably going to be using money
from CD accounts, stocks, or bonds, which means that you are no longer going to
be getting the 4 – 6 percent return. The goal in real estate investment is
getting a higher return than what you would have received, had you left the
money as liquid financial assets.
Many investors, especially those newer to the game, come
into the market looking for prize homes. This can be an extremely risky
investment, as finding a renter may be difficult and you need to be prepared
for an unforeseen market turn. With that in mind, investing in the average
homes that are cash-flow positive, which may not be as fancy as those prized
properties, are ideal. View Zillows’ “A Tale of Two Townhomes” for more information.
2. Do
Your Due Diligence
It’s common knowledge that investment comes with an
involved risk. Yet, real estate developments, parcel/land, Tenant in Common,
and fixer uppers have a much higher risk than the previously mentioned
cash-flow positive property. With TV shows like “Flipping Boston” or “Flip This
House” on A&E, many people want to purchase a foreclosure fixer upper, with
a low cost, flip it, and sell it later for a large profit. While this can be a
lucrative investment, it takes practice and due diligence (and possibly luck).
Even for those looking to purchase the cash-flow investment properties, as
mentioned above, doing your homework (viewing reports, analyzing, crunching
numbers, etc) is required to make the best real estate investment decisions.
3.
Time is Money
When purchasing investment property, you also need to
consider the amount of time you have to put into managing the property. Rental
properties in vacation destinations and college rentals constantly have tenants
coming and going. If you do not have the time to put into the property, you
need to make sure that you are investing in the right type of real estate. Find
a calm neighborhood or area, further away from colleges, to attract families or
individuals that will rent and stay for as long as possible. While there will
be issues, having a long term relationship with your tenants will help in the
long run, as they usually require less time and management.
Let Us
Help You Achieve Your Real Estate Goals
Real estate can be a risky investment, especially for
individuals new to the real estate market and industry. As real estate
professionals, we are area experts that are privy to real estate trends, as
well as market and industry news. Contact us today to learn more about the
services we can provide.
Check your current home value and neighborhood activity any time you want!
When
you are buying or selling property in today's market, it's important to have
confidence in your Real Estate professional. Valerie’s commitment as your
REALTOR® is to provide you with the specialized Real Estate service you
deserve.
When
you are an informed buyer or seller, you'll make the best decisions for the
most important purchase or sale in your lifetime. That's why Valerie’s goal is
to keep you informed on trends in Miami Real Estate. With property values
continuing to rise, Real Estate is a sound investment for now and for the
future.
As
a local Miami area expert with knowledge of the communities, Valerie’s
objective is to work diligently to assist you in meeting your real estate
goals.
If
you are considering buying or selling a home or would just like to have
additional information about real estate in your area, please don't hesitate to
call me at 305-785-3389, visit my website, or e-mail me at valerie@valeriebenadi.com
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