Whether you are interested in buying real estate as an investment to buy, renovate and re-sell or because you want to become a landlord, there are a few things you should do before you puchase your first parcel. If you are new to the real estate market, consider working with someone who is experienced to hedge against making a bad investment.
Black Box Equities has various investment properties available for sale and we are always looking to partner with investors interested in making an average return of between 8% and 14% over six months. Give us a call at 623-866-5548 or send an email to firstname.lastname@example.org to learn more about our private money lending program and the turnkey rental properties that are currently in our inventory.
Location, Location, Location. One of the most important things you need to consider before buying a piece of real estate as an investment is the property’s location. As investors ourselves, we take the time to investigate the surroundings of every house we buy, regardless of whether we intend to immediately re-sell it after it’s rehabilitated or rent it to tenants, and you should, too. By doing some homework, you can guard against buying a house in an unsafe or undesirable neighborhood. In general, you will want to ensure that a house you are going to buy has multiple bedrooms and bathrooms, and is close to public transportation, reputable schools, and attractions such as popular restaurants and stores.
Build a Reserve Fund. In addition to getting pre-approved for a mortgage, you should build up a reserve of money in case you don’t re-sell your property quickly or it remains vacant while you look for prospective tenants. With a reserve that equals between 6 and 12 months of your costs to carry your investment property, you will be able to pay your mortgage if your house doesn’t produce revenue for a period of time. You will also be able to pay for any repairs that are needed.
Find People with Necessary Areas of Expertise. Putting together a crew of people to help you be a successful real estate investor is important to your short- and long-term success in the market. Find an attorney who can not only handle your closing paperwork, but who can also prepare a lease agreement and handle any issues you may have with tenants. Build relationships with a trusted accountant to prepare your taxes and a maintenance person who will be able to make any repairs to your property that you can’t do yourself. If you don’t want to be involved in the day-to-day tasks that being a landlord requires, find a property management company that can handle them for you. Irrespective of whether you are going to flip houses or hold onto them, find a real estate agent who can help you buy and sell properties as needed.