Investing in real estate most likely won't produce the get-rich-quick results promised by real estate agents!
But for investors willing to do some homework, make a good purchase and properly manage a piece of property, the rewards can be substantial.
Various strategies can be used for real estate wealth!
Investors can buy a house, renovate it and sell it for a profit or can purchase a property and hold it for many years.
A common approach is to purchase an income-producing property such as a single home, an apartment building, an office or retail building with the intent to rent it.
Investing in real property - unless you're buying shares in a real estate investment trust - isn't as liquid as putting money into the stock market and… Real estate markets are very often cyclical in nature.
Before you consider real estate investing, think about this 5 pronciples:
1. Don't Overpay for a Property
Good research and due diligence are essential to spotting a deal that will be profitable.
2. Rules and Regulations
Real estate is governed by a broad set of laws and requirements.
3. Tenant Screening
It's critical that you have good renters who pay on time and don't damage the property.
4. Start Small
Your first purchase may be something simple so that you can get the hang of management.
5. Avoid Bad Partnerships
First-time real estate investors often join up with more seasoned pros, but you'll have to be comfortable with your partner!