Are You Ready to Invest in Real Estate?
Posted on October 07 By Francine Huff
Interest rates are low and housing prices are more affordable than they've been in years. But should you finally move off the sidelines and get started on your dream of becoming a real-estate investor? Here are some things to consider.
- Have you spent time to researching what it takes to invest in real estate? Before even beginning a hunt for something to buy you should spend time learning the ins and outs of what it takes to own and manage different types of property. Make it your business to understand different options for financing purchases and the types of professionals who can help you with an investing plan.
- Are you looking to purchase residential or commercial properties? You may choose to develop a strategy that focuses on buying and renting out single-family properties or condos, or decide to invest in small strip malls or office condos. Your budget will obviously play a huge role in what types of properties you can realistically expect to buy.
- Do you plan to actively take care of any property you buy or hire a property manager? Being a landlord means dealing with the good and bad when it comes to tenants. If you're a take-charge, hands-on person you may be successful at managing your own properties.
- Have you considered investing in real estate investment trusts (REITs). REITs are companies that buy, develop and manage properties and/or real-estate loans, like a mutual fund for real estate. Some REITs are publicly traded. Owning shares in a REIT allows you to profit from real estate without having the buy and manage individual properties.
Investing in real estate involves more than interest rates and housing prices. Successful real-estate investors usually have a team of individuals in place, such as mortgage brokers, inspectors, appraisers or attorneys, who can help them find, purchase, manage and sell properties.
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