No matter what you hear about new cryptocurrencies, serious investors know where the real money is. That's why there are over 22 million landlords in the US, making real estate one of the most popular investments in the world.
If you're thinking about investing in real estate, then we're here to help. Let's talk about some important real estate investing tips to keep in mind for your financial security!
1. Choose the Right Real Estate Investing Strategy
Choosing the type of investment you want to pursue is crucial. There are many options to choose from in real estate, and all of them come with their own perks. Let's stick to the two most popular options.
First, there's flipping houses. This is a great way to earn some profit on the backend, but it comes with a lot of risks, and the payouts are only one-time.
Next, you can try to buy a turnkey rental property, which is the most popular option for real estate investors. This is the best option for long-term, sustainable income, and you can always resell the place whenever you choose! The only downside is that it's more expensive to purchase upfront, but if you crunch the numbers and find the right loans, it isn't a problem.
2. Understand What Can Affect Your Investment
Especially for rental properties, there are three important aspects that can cripple your real estate investment. Unfortunately, the only way to control these potential threats is with preemptive action.
First, you have the building. If the building itself will require major structural repairs all at once or within a short period, then you could lose a lot of money on your investment or go bankrupt. Always get a thorough inspection of the property ahead of time to avoid this.
Second, you have to worry about the location. If the neighborhood goes downhill, so does your investment. To protect your investment, try to find a property in a safer location, like next to a school or public transportation stop!
Finally, you have the tenants. If you're investing in property to resell (condos, flips, etc.), then you can always find new buyers without any restrictions on your sale. However, it's not as easy to evict a troublesome tenant as you may think.
No matter what, always screen your tenants thoroughly. Ask for references, check their credit history, and verify their income at the very least. If you want to be more thorough, check their criminal backgrounds as well!
3. Get Professional Help
If you want to secure your retirement or earn passive income through your real estate investment, hiring a professional property management company is the way to go. Not only can you sit back and enjoy the checks, but you will have access to expert advice and management over your property, securing that income for the long term!
Our last tip in our real estate investment guide is to continue doing your research. Landlords and real estate investors need to have a diverse knowledge base for success. Keep learning about real estate investing, your local market, and how you can be a more effective investor.
Keep reading our blog for more information, and feel free to contact us with any questions or for help with your Fort Lauderdale investment strategy!