Questions First Time Real Estate Investors Should Ask
If you are a first time real estate investor, you need to make sure you are asking the right questions.
Consider these questions before you begin investing:
- What are your goals? If you simply want to make a specific mount of money, buying and selling real estate may be for you. If you prefer a steady income, rental properties are the best choice since they generate an ongoing cash flow.
- What do I need to know? Research is key for real estate investing no matter which way you plan to go. You need to know the market in your area and you need to know how much it costs to fix up properties.
- Flip or rent? Flipping apartments involves purchasing them, fixing them up and reselling them for more money. It’s a good business for professionals, but for those who are new to the process, it can be timely and expensive. When you purchase properties for ongoing rentals, you’ll still need to make needed upgrades and get them ready for renters, but you can hire a property manager to take care of things like small repairs and tenant-related issues.
- What kind of property should you buy? Think about what kind of property you’d like to purchase. Small apartment buildings or larger apartment complexes? As you consider each one, do your research on the area and see which has the best track record.
- What can I afford? Real estate can be expensive. It’s good to get prequalified before you go shopping. Take a look at your current finances and decide how much you want to spend.
These questions are just the start, but they are good for any first time real estate investor to ask before going into the business.
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