Right now has to be one of the best times to invest in real estate in a very long time. Homes, land and even commercial real estate have pretty much hit bottom most experts predict, and shouldn’t return to their previous 2009 levels any time soon.
Couple real estate’s lowest prices in years with the current mortgage rates being offered and you have a huge opportunity to get into investing in real estate that hasn’t been available previously for quite some time.
Of course, real estate investing is still an investment and inherently has risk. So you still need to do your due diligence when investing. Here are a few things to think about if you are a first time investor.
You really need to think about what exactly you want to invest in. There are a myriad of different kinds of real estate investments. These include purchasing single family homes, apartments, apartment buildings, vacant land and commercial real estate such as factories and store fronts.
Once you decide an area you’d like to begin investing in, then you need to understand if you are looking to become a landlord and hold the property long term? Or rather, you want to find building that need work, perform the work and flip the property for a short term profit.
Each scenario is different. And different tax laws pertaining to each type of investment should also be considered as taxes, construction costs, insurance and other expenditures will also greatly effect your profit margins.
Should you decide to step up and enter the exciting world of real estate investing, “the first thing you need to do is find a reputable real estate agent to help you find the very best opportunities,” states Allen, a real estate agent specializing in Colorado Springs Real Estate. “I haven’t seen as many great opportunities as we are seeing right now in a very long time.”
Don’t forget the old adage, “location, location, location!” This still holds true today, regardless of market conditions or whether you are renting or selling. “Homes in high-rent or areas with a high population density are best and that is what we are seeing with the Powers Homes in Colorado Springs” says Allen.
In more rural areas, it can take substantially longer to either rent or sell your property simply based off of the law of supply and demand. Although the higher rent or traffic areas usually cost more to purchase up front, the profits you’re seeking should also be more substantial as well as more predictable. This is especially true for rentals.
And one last tip. If you think you are serious about real estate investing, start planning and preparing now. Think about things you are going to need. Learn about building permits, forms and the insurances you’ll need. The buying and selling process. Which realtors can help you with this?
Then think about, if you plan on buying homes and fixing them up to flip at a profit, then start finding out who the best painters, plumbers, electricians and so forth are right now. Who are the best real estate lawyers for the closing? Are there any accounts that specialize in real estate investments? Ask family and friends if they know reputable people that you can work with in the near future.
All of these people can either make your life and earnings better, or really hamper your entire project. So get to work on your list today. It’s free to do, but it will be priceless in the end.