Real estate investing can be risky... and very rewarding! The first thing you should know about property investment is to be careful with "too good to be true" and "sure bets." As with any opportunity, there are people who look to take advantage of others and it is important to not get caught up in schemes that can bankrupt your before you ever get started.
If you are seriously considering investing in real estate property, here are a few things you should know to get you started.
•You should have plenty of investment capital, not only to make the purchase, but to make the necessary upgrades and pay the taxes. If an opportunity comes to you and you are being sold a "no-money-down" option, this is probably too good to be true. Also, if you are asked to take a huge loan that will put you in a debt you can't get out of, this is probably too good to be true! Always go into an investment with cash on hand and plenty to live off of as well!
•You should have a good knowledge of the real estate market and the area in which you are looking to buy property. Is this an area that is growing? Are there businesses to support your tenants or future buyers? What are other properties in the neighborhood selling/renting for?
•You should have good management, people and negotiating skills--or you should have a property management company work for you that does. Collecting rent, managing repairs and finding tenants can be a difficult job.
•You should have the ability to do repair work, access to people who can do it for you, or a good property management company who can arrange and coordinate the work that will need to be done.
•You should have a relationship with a property inspector who can evaluate properties before you buy them and validate the claims by the sellers of repair work that they have done.
Finding a good property in which to invest and making that into a rental property, or turning it around for sale can be a job in and of itself. That is why many people are turning to property management companies to turn their investments, into profitable businesses.
If you are interested in learning how a professional property management company in the Carolinas can assist you with your investment property, please contact Kuester Property Management.