So, you've saved some money and decided, you want to be just like those rich and famous and invest in some real estate. Great decision! You finally realized that bank paying you 2% annually on your saving account, is simply stealing your money. Decision is made, so what is the next step?
When getting your investment property, things to consider are pretty much the same.
Step 1 – establish your budget, talk to your mortgage specialist, you might be surprised with the amount of downpayment you would need to have.
Step 2 – decide how would you like to work with your investment property – flip it or rent it out.
Step 2a – Fixing and Flipping might sound easy – buy low, fix it up and sell it high. You will need a precise market evaluation to buy the right house that has enough potential.
Step 2b – Buying and Renting out – there are some questions to be answered here – what type of property and what location yields the maximum profit? how saturated is the market or how much competition would you have? how would you qualify your potential tenants?
Step 3 – go shopping and get a great property!
I know, I know, sounds too easy to be realistic… But this might be easy or hard depending on the team you got by your side. And you will surely need a team, not just your Real Estate Agent, specializing in investment properties, but also Mortgage Broker, Accountant, Lawyer, Home Inspector, General Contractor, Property Manager.
Your wealth is so close – just stretch your arm and get it!
Thinking of investing in Real Estate? Not a bad idea at all – 8% and up appreciation per year. What other investment can yield this much?
Compliments of Marina Gavrylyuk
Real Estate Agent with Sutton Group Summit Realty