01 Nov Should You Invest In Real Estate?
Before I ventured into the world of real estate by becoming a realtor, I was a real estate investor first. My first dabble in real estate began as an investor, and over the years I never lost my passion for it. Right now, quite a bit of my business is in leasing and property management for investment real estate. My experiences as a seller, buyer, agent, landlord and property owner have allowed me to cultivate the type of experience that I enjoy passing on to my clients. While working with many of my clients, one question that I always seem to get is: should I invest in real estate?
When considering investing in real estate the first thing you should evaluate is your financial situation. Are you financially prepared to take on another property and the potential issues that could come along with it? Having an experienced Realtor on your side will help you to figure out what you can afford and will assist you in finding the right financial professionals to help you have a good understanding of your financial bearings and what you can easily manage.
However, knowing how much you can spend is not the only variable you should consider. A Realtor who knows about the complexities of what type of profit you can gain from an investment property and the potential expenses that could come along the way is also very important to have. It is imperative that your real estate agent has the knowledge and experience to walk you through the details of purchasing an investment property.
Another very important factor is assistance in choosing the right type of home to invest in. There are basically three types of investment properties: land, residential (this includes single and multi-family homes) and commercial. An investment in land is usually for those who have the financial leeway to sit on a property for years until it appreciates in value. However, residential is the most common for beginners and those with experience due to its quicker return on investment. It is also easier to step into residential because of the larger inventory of properties for sale, and generally speaking any house can be turned into a rental home. Commercial properties can be attractive because tenants are typically stable because they have a business relying upon their good standing as a tenant.
My experience as a Realtor and an investor allows me to help you weigh the pros and cons and make the right decision based on your situation and future goals. Investment is one of my passions as a Realtor, and I want to share that passion, knowledge and experience with you.