What are some real estate investing tips that you can use whether you're just starting out or have owned properties before?
All these real estate tips listed below are axioms - real estate investing fundamentals that will help guide you towards growing your bank account through owning a rental property. These ten real estate investing tips will set you on the path to making money if you work hard and don't get greedy.
axiom: a statement or proposition that is regarded as being established, accepted, or self-evidently true
1) Money is made at the time of purchase in real estate, that’s a statement nearly as common as location, location, location, when the talk is of real estate investing—yes, it's a cliche but it's also very true.
2) Reaching the owners of the property before anyone else puts you in an advantageous position when you want to buy a property. If you like the property you can make an offer before anyone else.
3) It’s better to have missed out on a chance than to take on a property that you can’t sell and is losing money and taking up all of your time.
4) Prices of properties that have actually sold in your area are much more valuable than the advertised prices of property.
5) Do your research: gather information from the local chamber of commerce—area trends, planned developments, and public and private enhancements of the city. Ask, what will this area be like in 5, 10, 15, 20 years? What stage is the neighborhood in? Is it an area that is growing?
6) If there are low vacancy rates, upgrades to properties are being performed, and expansion—that’s all positive.
7) But if there are high vacancy rates, abandoned buildings, buildings are not being taken care of, graffiti, and crime is up—all negatives, then it’s a bad investment.
8) Don’t take on more than you can handle—there will be other opportunities.
9) Find out what stores and or restaurants are opening up near where you're buying property. Yes, if a Starbucks or a Whole Foods type of store is opening up near your property's neighborhood, that can be a great selling point.
10) Check the quality of the schools near the property you're buying, from elementary to middle to high school - see if the quality and teacher levels are high.