Are you looking to get in on flipping houses in the real estate industry? Well, if you’re serious, then you have to get some knowledge in real estate investing. This process isn’t easy to master, but if you do it correctly, it can be extremely rewarding.
Real Estate Investing Basics
One of the very first things you need to look at if your thinking about investing in real estate is property value. Just because a home seems like it is being sold for an extremely good price doesn’t always mean that is is a sound investment.
- Things to Consider:
- How is The Crime Rate?
- What is The Average Median Income Per Household?
- How Good is The Current Areas School District?
- How Good is The Overall Economy of The Area?
You never want to buy a house in areas with a high crime rate, poor school district, or an area where people don’t generally have any money. If you do take the risk and develop a real estate property in these kinds of areas, then you will probably be waiting a long time to see a return on your investment, or your property might just not sell at all, and unfortunately, things like this DO happen.
Other Things to Consider When Investing in Real Estate
If you did your due diligence and found a home that you would like to flip in a decent area with a good price, then the next thing you should be thinking about is what improvements do you actually want to make?
You should actually be thinking about things that are known to substantially increase the value of the home. Perhaps doing a kitchen remodel or a bathroom remodel might be the best place to start, and after those are done, then think about upgrading the flooring of the home.
Another great upgrade to any home you should also be thinking about is new windows. Replacing older windows with newer windows can help decrease costs on energy bills year around and can be a great selling point when the time comes to sell the home.
More Real Estate Investing Tips
Don’t Think Locally – Think Globally! – What we mean by this is when you are looking for real estate properties to invest in, think outside of the box, and more importantly, outside your comfort zone. Investing in your local neighborhoods might bring you some nice cash flow, but think about looking for properties that are out of town, and even out of your home state. Believe it or not, many successful real estate investors do this all of the time and most of the time, this strategy works, especially with new and emerging neighborhoods.
Don’t Over Invest in a Single Property. – Flipping houses is a lot of fun and extremely rewarding, but did you know that you can actually over invest in a property? Unfortunately, it is true, and you should really find out the median home value in the area you are investing in before going full throttle on a single project. For example, if you are investing in a property that is located in an average income area, then make sure you do a good job on the home rehab, but don’t try and turn the property into a million dollar home, because most likely, the property will have a hard time selling. This tip will surely save some real estate investors some cold hard cash in the long run and when it does, you know where you heard it first!
Double and Triple Check All Maintenance Issues. – Before diving right into the fun stuff (meaning home rehab improvements) be sure to contact a local inspector to go through the property with you and identify any maintenance issues. This could range from electrical problems, plumbing problems, and even bug problems. Doing this before you start making repairs could save you thousands of dollars in the long run and is another great real estate investing tip everyone should use.
Join a Local Real Estate Investing Network. – Joining a few informative local real estate investing network groups could give you valuable insights and help you learn how to make even more money at flipping your properties. Learning along the way is expected, but getting all the help you can get upfront will definitely help you gain an advantage in this field.
Are You Ready to Start Investing?
These basic real estate investing tips should be enough to get you started, so what are you waiting for? Go out there and make some cold, hard cash! Come back and visit our blog weekly to learn the best hard money and real estate investing tips in the industry.
You could also click here to check out our guide on how to flip a house with no money. Have a look, you won’t be disappointed.