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Here are some basic tips for newcomers to real estate investing. These are from an article by Broderick Perkins (review full article)
Perkins talked to individual investors, real-estate agents who also invest, investment club members, and others to glean these tips:
Buy your own home first. ...it will teach you the true cost of property ownership beyond the monthly mortgage payment, give you a primer on financing, school you on how location and changing market conditions affect values, give you the angle on tax and other home-owning benefits, introduce you to a host of professionals who could prove invaluable...
Go back to school. After you buy a home, turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses. Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources.
Get professional help. ...look for a mentor, investment partner with prior knowledge or an investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate.
Learn your investment market. A home in one market could give vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but not appreciate, while a home in another market won't bring enough rent to cover expenses but appreciates more than enough to make up for it over the long term. The variables are endless. |
