It’s never too late to begin investing in real estate…..it’s never too early either. Real estate offers a solid investment opportunity which can provide not only an income stream but long
term value appreciation as well. Regardless of the ups and downs of the market, people will always need housing, so real estate will remain a good way to create wealth.
By understanding some of the basics of real estate investing, you can begin to create your own plan. Here are 5 tips for first time real estate investors.
1. Use Leverage – . Learn about options other than your own savings for these costs.
2. Budget for the Unexpected – Have a fund available to draw on for the unexpected. Even the most carefully planned project can have unexpected costs.
3. Invest for the Long Term – Real estate investing should not be viewed as a “get rich quick” scheme.
4. Don’t Over Extend – After evaluating the risk, be honest about your ability to handle the negative possibilities the opportunity could present.
5. Be Patient – Wait for the right opportunity.
Real estate offers solid investment opportunities. A first time investor can realize profit and
positive cash flow with careful planning and research.
Why Millionaires Love Real Estate
Serious investors already know the value of a diversified portfolio. In addition to stocks and bonds, real estate should be included in your investment mix. One way to accomplish this is to purchase, hold, rent or flip actual physical property, as part of your investment strategy. Real estate is a solid asset which can provide annual income, asset appreciation and/or quick profit. Millionaires understand the value of real estate and how it can be used to increase wealth and as a hedge against the volatility of other investments, such as stocks and bonds. Real estate holdings can provide immediate and long-term benefits:
• Cash Flow – Rental income is one of the primary reasons investors purchase property.
• Asset Appreciation – Property value appreciation is another advantage of investment
property. While rents pay the mortgage and ownership costs, property values are on the
rise, increasing the asset worth.
• Fast Capital – Buy and flip properties are a great way to quickly add capital to your
Those who understand wealth-building strategies know the value of real estate as a part of a
balanced investment portfolio. Along with short-term opportunities, real estate can offer an
asset with cash flow and appreciation, unlike the volatile stock and bond markets.
YOU ONLY HAVE 10-SECONDS TO IMPRESS A HOME BUYER!
No matter how great the interior of your home looks, buyers have already judged your home before they walked through the door. Potential buyers will form opinions before entering your home. And you never have a second chance to make a first impression. You can test this out by looking through our current list of Greenville homes for sale. Pay attention to your own impressions based only on the first picture. Curb appeal is very important!
How To Make A Great First Impression with Curb Appeal
It’s important to make people feel welcome and safe as they approach the house. The second a potential homebuyer pulls into the driveway the clock starts ticking. Before that happens take some time to spruce up your home’s exterior. Take notes on which part of your house is visible as you are pulling into your street and as you pull into the driveway. There are many ways to pump up your home’s curb appeal. For example, inexpensive shrubs and brightly colored flowers near the front door will help draw the eyes right where you want them to focus.
We all know the importance of having a clean home when trying to sell, but many people forget that this rule extends to the exterior as well. Power washing the outside of your home is a sure-fire way to boost your curb appeal. It will take off any dirt and grime on the siding and windows leaving everything clean and shiny. The before and after of a power washed home is shocking, it really makes a difference. When a potential buyer pulls up to a clean house with sparkling clean windows, they know the current owner has pride in ownership. Pay attention to the smaller details as well when cleaning up outside.
- Make sure the sidewalks in front, the driveway, and walkway entering the home are all well swept, or power washed.
- Taking an edger or weed Wacker around the perimeter of your front lawn will do wonders too.
- Remove any yard debris that may be collecting in corners around the home perimeter or fence line.
- Inspect the paint on the exterior of your home and touch up any weathered or dull areas.
Last but not least the front door, the cherry on top of your home’s curb appeal is the front door, so dress it up a little. Take the time to really clean the screen door if you have one, especially if the door has any glass. Clean the glass inside and out for a lasting impression when they walk in and when they walk out. Use a brightly colored wreath or welcoming plaque to stand out in a sea of homes for sale. Aside from location and specific details in the home, the homebuyer’s decision will be heavily determined by the look and feel they get from that first 10-second impression. So, make it count!
Do you have a budget? And do you know how to use it?
Owning your own place comes with a slew of new expenses. So good money-management skills are a must-have. If you don’t have a household budget right now, you need to start one. Remember as a renter any maintenance issues that arise are taken care of financially by the landlord. However, when you are a homeowner, on top of your mortgage, insurance, and taxes, are you have to be ready and prepared to take on that financial responsibility. Having a clear understanding of your finances is necessary when you’re considering buying a home. Prior to speaking with a real estate agent, you should make a budget to see how much you can reasonably afford to pay. If you simply cannot afford the increased expenses that come with a house, it’s never a good time to buy, no matter what’s going on in the real-estate market.
Have you been saving? Do you have a down payment?
When buying a home you will have to get a loan and with getting a loan you will have closing costs and the down payment. You will have to come up with money up front, unlike renting where the deposit is minimal. Down payment amounts vary based on the type of loan you’re offered but remember that the more you put down, the lower your mortgage payments will be!
Do you have a backup or emergency fund?
Before you devote all your savings to a down payment, closing fees, and home upkeep, you need to take a look at the bigger picture. You need to build up your savings in case of financial setbacks that could cost big, like unexpected unemployment or serious illness.
Always remember it’s not just money that should affect your decision to buy a home…..
Happy house hunting! Please feel free to comment any of your questions.
One of the perks of using a realtor in Greenville, Texas, is the syndication process our MLS uses! Take a look at the image below showing just some of the MLS home listings your home will be on when working with me.